NMPF Chief Economist Peter Vitaliano offers an update for the 2020 NMPF Virtual Town Hall.
Tag: dairy farmers
NMPF Chair Mooney Says Dairy is Meeting “Biggest Challenges of Our Lifetimes”
The extreme disruptions and financial upheaval caused by the COVID-19 pandemic have created real struggles for dairy producers – and the industry has responded by rising to an unprecedented occasion, said Randy Mooney, chairman of the National Milk Producers Federation, to delegates Monday at NMPF’s first-ever virtual annual meeting.
“We haven’t landed safely yet, but there’s plenty of reason to believe that we as an organization and an industry have risen to the biggest challenges of our lifetimes, and that we’ll be able to look back with pride on our response to the pandemic,” Mooney said in his remarks, this week’s Dairy Defined podcast. The podcast can also be found on Apple Podcasts, Spotify, SoundCloud and Google Play.
NMPF’s annual meeting continues today and is free of charge to registrants. More information about the meeting — the largest dairy-farmer policy gathering in the U.S. — is here, and registration information is here.
Broadcast outlets may use the MP3 file. Please attribute information to NMPF.
Dairy Market Report – October 2020
NMPF’s Bjerga on the Dairy Economy and the 2020 Elections
NMPF Senior Vice President of Communications Alan Bjerga discusses the way forward for dairy disaster assistance and the impact farmers could have on the 2020 election in key swing states, on RFD-TV.
USDA’s Dairy Margin Coverage Program Now Open for 2021 Enrollment
With the ongoing COVID-19 crisis teaching hard lessons on risk management throughout agriculture, and with dairy margins expected to be volatile over the next year, the National Milk Producers Federation (NMPF) urges farmers to sign up for maximum coverage in 2021 under the Dairy Margin Coverage (DMC) program.
DMC is designed to ensure that dairy farmers can protect themselves against financial catastrophe. Despite forecasts in late 2019 predicting that DMC was unlikely to generate payments in 2020, margins fell to their lowest levels in more than a decade in the first half of this year, triggering payments that kept many dairies afloat. The current USDA forecast indicates margins will drop below $9.50/cwt. in the first half of 2021. DMC coverage offers certainty in times of need, allowing for better financial planning and faster payment when necessary.
Enrollment for the 2021 DMC program year starts today and runs through Dec. 11. See below and visit USDA’s Farm Service Agency’s DMC page for more information.
ELIGIBILITY
All U.S. dairy operations are eligible for DMC. An operation can be run either by a single producer or multiple producers who commercially produce and market milk. Each producer on an operation must share the risk of producing milk and make contributions (including land, labor, management, equipment, or capital) to the dairy’s operation at least equal to the individual or entity’s share of the operation’s proceeds.
An eligible dairy operation must:
- Have a production history determined by USDA’s Farm Service Agency (FSA).
- Be registered to participate during a signup announced by FSA.
- Pay a $100 administrative fee annually for each year of participation, except if the dairy operation qualifies for a waiver for limited resource, beginning, socially disadvantaged, or veteran farmers and ranchers.
A dairy operated by more than one producer still will be registered as a single operation. Producers who operate two or more dairies need to register each operation separately to cover that operation.
Eligible DMC participants are also eligible to participate in the Livestock Gross Margin for Dairy Producers Program and the Dairy Revenue Protection Program. Both are administered by the USDA Risk Management Agency.
COVERAGE LEVELS
Producers have multiple options for coverage each year. Basic catastrophic coverage of $4/cwt. is free, except for the $100 annual administrative fee. Farms can insure their first 5 million pounds of milk production history, designated as Tier I, in 50-cent increments from $4/cwt. up to $9.50/cwt. Annual production above 5 million pounds falls into Tier II. Coverage options in Tier II range from $4/cwt. to $8/cwt. Producers must also select a coverage percentage of the dairy operation’s production history ranging from 5 percent to 95 percent, in 5-percent increments.
The following table provides the premium schedule.
HOW TO APPLY
FSA opens enrollment for DMC on Oct. 13 for calendar year 2021. The deadline to enroll for 2021 coverage is Dec. 11.
All dairy farmers who want 2021 coverage must visit their local USDA Service Center office to pay the annual administrative fee, which is $100 for all coverage levels. Producers must visit their local office even if they locked in coverage in 2019 for five years to take advantage of the 25% premium discount offered the first year of the program.
ADDITIONAL SUPPORT
USDA offers a variety of programs that have helped dairy farmers in addition to DMC, including insurance, disaster assistance, and conservation programs. Most recently, the first round of aid under the Coronavirus Food Assistance Program provided $1.75 billion in direct relief to dairy producers who faced price declines and additional marketing costs due to COVID-19 in early 2020. Signup is now underway for a second round of CFAP payments, offering further assistance for dairy producers and many other eligible producers. CFAP 2 applications are being accepted by FSA offices now through Dec. 11.
ADDITIONAL RESOURCES
For more information, visit the farmers.gov DMC webpage, or contact your local USDA Service Center. To locate your local FSA office, visit farmers.gov/service-center-locator.
Looking To 2021, All Dairy Farmers Should Sign Up for DMC, NMPF Says
With the ongoing COVID-19 crisis teaching hard lessons on risk management throughout agriculture, and with dairy margins expected to be volatile over the next year, the National Milk Producers Federation is urging farmers to sign up for maximum 2021 coverage under the U.S. Department of Agriculture’s Dairy Margin Coverage program. DMC signup begins today.
“The DMC emphatically proved its worth this year, as payouts rapidly reacted to unprecedented price plunges and protected farmers exactly when they most needed help,” said Jim Mulhern, president and CEO of NMPF. “Coronavirus-related volatility in dairy markets is expected to continue well into 2021, with DMC payments a possibility. That makes it essential that farmers include DMC coverage in the robust risk-management plans they will need to ensure financial stability.”
DMC, the main risk-protection tool for dairy farmers enacted in the 2018 Farm Bill, is designed to promote stable revenues and protect against financial catastrophe on some or all of a farmer’s milk. Despite forecasts in late 2019 predicting that DMC assistance wouldn’t be needed by farmers in 2020, margins instead fell to their lowest levels in more than a decade in the first half of this year, triggering payments that undoubtedly kept many participating dairies afloat. And unlike difficult-to-predict federal disaster assistance that’s provided via specific legislation or administrative action, DMC coverage offers certainty in times of need, allowing for better financial planning and faster payment when necessary.
DMC also offers:
- Affordable higher coverage levels that permit all dairy producers to insure margins up to $9.50/cwt. on their Tier 1 (first five million pounds) production history. Recent margin trends in reference to that $9.50 threshold is included in the graphic below.
- Affordable $5.00 coverage that offers meaningful catastrophic coverage for farms of all sizes.
NMPF has a resource page on its website with more information about the DMC.
Dairy Defined Podcast: Sustainability, in All Its Forms, Key to Dairy’s Future, Vold Says
On National Farmer’s Day, dairy farmer Suzanne Vold is highlighting dairy’s commitments to the environment and a net-zero future, noting that her colleagues are already effective stewards and are committed to doing more.
“We need to work with our partners in government. We need to work with partners in academia, dairy science departments, and agronomy departments and our colleges and universities. And we need to work with our cooperatives, the companies that process our milk into products to sell,” said Vold in the latest Dairy Defined podcast, released today. “But we have to start the work somewhere, and we have to start the work now.”
Vold, with her husband, brother-in-law and two part-time employees, runs Dorrich Dairy, a 400-cow, fourth-generation dairy farm in western Minnesota. In the podcast, she also discusses specific practices on her farm that save money and create potential revenues as well as improve water and soil health – as well as the importance of other initiatives important to dairy and agriculture, from the Dairy Margin Coverage program to rural broadband.
The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify, SoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.
NMPF’s Bjerga on the Importance of DMC Signup
Signup for the 2021 Dairy Margin Coverage begins on Tuesday, Oct. 13. NMPF’s Senior Vice President of Communications, Alan Bjerga, breaks down how DMC provided effective disaster assistance for farmers, and why 2021 is shaping up to be a year when participation will be important for all dairy producers. On RFD-TV.
https://www.rfdtv.com/story/42746824/national-milk-producers-federation-on-the-2021-dairy-margin-coverage-program
NMPF Supports USDA Efforts to Modernize Animal ID and Disease Traceability Requirements
The National Milk Producers Federation submitted comments supporting the United States Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) proposal on the Use of Radio Frequency Identification Tags as Official Identification in Cattle and Bison. APHIS has proposed to require the use of official 840-RFID tags for all dairy cattle involved in interstate commerce starting Jan. 1, 2023.
“We commend USDA-APHIS for taking this next step in moving animal identification forward, with the use of RFID tags for official animal identification for dairy cattle,” said Jim Mulhern, president and CEO of NMPF. “A national animal identification system can provide immediate access to relevant information in an animal disease or food safety crisis that could endanger the entire dairy chain, while protecting farmers’ privacy.”
The U.S. dairy industry has long advocated modernizing animal ID and disease traceability systems. Farmer organizations including NMPF, the American Jersey Cattle Association, Holstein Association USA, Inc., National Association of Animal Breeders, National Dairy Herd Information Association and Dairy Calf and Heifer Association formed a group called IDairy to collectively advance official mandatory animal identification to aid disease traceability.
IDairy in received a USDA-APHIS cooperative agreement on premise registration and animal ID education that propelled the use of RFID tags in the U.S. dairy industry. Since 2009, the National Dairy FARM Program: Farmers Assuring Responsible Management (FARM) Program has also recommend use of official 840-RFID tags for all dairy cattle.
Animal ID and disease traceability needs may be different for other livestock sectors, so NMPF encouraged APHIS to carefully consider comments from those other livestock industries when finalizing requirements and implementation timelines.
Dairy Defined: An Open Letter to FDA Commissioner Dr. Stephen Hahn
Dear Dr. Hahn –
Sorry to bother you at such a busy time, but we need to talk. We’re guessing that 2020 wasn’t what you expected, dealing with COVID vaccines and a host of other pressing concerns. It’s been crazy for us too. But faith and friends can help you through, no matter how big or small the troubles may be. We hope you’ve felt supported through these challenging times.
We’ve noticed that recently, FDA has been getting more active on topics beyond COVID-19, in some cases even revisiting issues that have lain dormant from previous decades in the spirit of completing unfinished business. That made us think it was time to remind you about something you promised you’d deal with back in November, before everything turned upside down. At your FDA confirmation hearing, Senator Tammy Baldwin asked you whether and when FDA under your leadership would soon start enforcing labeling standards that reserve dairy terms for real dairy products, not the plant-based imposters that are posing an increasing problem for public health. You said you supported “clear, transparent, and understandable labeling for the American people” and that you would “very much” look into it.
How is that going? Any way we could help? We understand that FDA has kicked fake dairy deception down the road for decades, but the problem is only growing, public-health experts are growing concerned, and it isn’t a heavy lift for the FDA to do what’s not only true to its mission but also what’s legally required. In fact, we have provided an entire road map proposal that offers a clear guide to resolution – one that is well-grounded in First Amendment law, would ensure that consumers know what products are and aren’t nutritionally, and even could allow plant-based “milks” to continue dairy terms in some instances, with proper qualifiers that have long been established in FDA regulations to clearly distinguish them from dairy.
We had been very hopeful, based on your pledge, that this would be the year this problem could finally be solved. Since it’s late in 2020 – and who knows what the next few months might be like? — we thought we should check in.
We’re cheering for you to take action. FDA commissioner is never an easy job, and 2020’s been a challenge for the ages. But since fake milk has long been crucially important to dairy farmers – in places like Wisconsin, in Michigan, in Pennsylvania, in Minnesota, and all across the United States – we thought this might be a good time to remind you of this promise.
We’re happy to chat further because this simple matter can be resolved soon, to the benefit of everyone. Well, maybe not marketers of dishonest products, but they’ve had their day. Say hi to everyone at FDA for us, there’s never enough bandwidth on Zoom to talk to everyone we’d like to. Good luck with the rest of the year!
With Regards,
The National Milk Producers Federation
NMPF Hails Funding Plan, Calls for Further COVID Relief
The National Milk Producers Federation today thanked Congress for sending bipartisan legislation to President Trump that extends government funding until Dec. 11 and urged Congress and the White House to reach agreement on another coronavirus relief package.
“We are glad Congress reached a government funding deal that provides important support to farmers and families who have weathered incredibly difficult challenges all year long,” said NMPF president and CEO Jim Mulhern. “This measure not only avoids a government shutdown; it also ensures that additional COVID-19 assistance can be provided as further needs arise and provides important nutrition assistance to families in need.”
The legislation passed by the House and Senate immediately replenishes the borrowing authority for USDA’s Commodity Credit Corporation. The CCC funds farm bill initiatives, including the Dairy Margin Coverage Program, as well as the Coronavirus Food Assistance Program, the second installment of which Agriculture Secretary Sonny Perdue announced earlier this month. Notably, it includes $8 billion in nutrition assistance and extends flexibility for school districts to make meals more affordable and accessible for students during the unprecedented COVID-19 pandemic.
NMPF hopes that, with the government funding debate resolved, Congress and the administration will now agree on another coronavirus relief bill. The House earlier this week released a revised version of its Heroes Act, which again includes important provisions such as a dairy product donation program that would help farmers and consumers. NMPF is continuing its push for additional, equitable support to all producers that reflects the losses they have suffered, no matter the size of the operation.
“The House and Senate both provide support for agriculture in their coronavirus relief proposals, and the House is reaffirming that support,” Mulhern said. “Congress and the administration need to bridge their differences and finalize a bipartisan plan that continues to provide needed disaster assistance to all dairy producers. The issues are challenging, but we believe policymakers are up to the task.”
