NMPF Awarded USDA Grant to Advance On-farm Biosecurity

The National Milk Producers Federation today was awarded funding from the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) to develop and improve biosecurity on U.S. dairy farms.  

As one of two livestock industry organizations chosen along with 16 state animal health authorities and 14 land-grant universitiesNMPF will use the $488,603 grant to implement and coordinate the Secure Milk Supply (SMS) plan and develop biosecurity program area through the National Dairy FARM Program (FARM). The FARM Animal Care program places an emphasis on biosecurity as a key element of dairy herd health and the grant funding will allow for further prioritization.  

“The dairy industry has partnered with USDA for more than a decade on the Secure Milk Supply PlanWith this new funding, we are eager to continue and expand our work on biosecurity through integration with FARM,” said Jim Mulhern, president and CEO of NMPF. We applaud USDA’s work to enhance the prevention, preparedness, detection, and response to animal diseases that threaten the viability of U.S. dairy farms.” 

The grant is funded by the 2018 Farm Bill as part of an overall strategy to help prevent animal pests and diseases from entering the U.S. and reduce the spread and impact of potential disease incursions through advance planning and preparedness. APHIS will distribute funding through the National Animal Disease Preparedness and Response Program (NADPRP) as well as the National Animal Health Laboratory Network (NAHLN) 

USDA has funded the NADPRP projects with the goal of individually and collectively addressing critical livestock biosecurity, large-scale depopulation and carcass disposal concerns in all major livestock industries across all U.S. regions. NMPF will apply the grant funding to advance biosecurity on dairy farms by partnering with stakeholders and experts including the Center for Food Security and Public Health at Iowa State University, dairy farmers, veterinarians, dairy cooperatives and processors, and state and federal animal health officials.  

October DMC Margins Above Trigger; Declines Expected in 2021

The monthly margin for October under the Dairy Margin Coverage (DMC) program increased by $1.93 per cwt from September’s margin, to $11.13 per cwt, meaning no payments to farmers for milk produced that month. Still, forecast margin declines made a compelling case for signup for the program in 2021, due by Dec. 11.

Both the milk-price and the feed-cost components of the margin formula increased in October; the milk price increase during the month, $2.30 per cwt, far outpaced the $0.57 per cwt higher feed cost. For the second month in a row, both the corn and soybean meal prices were higher by appreciable amounts in October.

As the DMC 2021 deadline approaches, futures markets continue to indicate that margins will drop below $9.50 per cwt early next year and remain well below that level through at least next summer. As this year proved, making the decision to sign up for the program based on the market outlook near the end of the enrollment period can be very misleading, and that signing up should be the default decision in any case. But for next year, the outlook further reinforces that indication, erasing any residual uncertainty about participating next year at $9.50 per cwt for the first five million pounds of production history.

The DMC information page on NMPF’s website offers a variety of educational resources to help farmers make better use of the program. NMPF also is offering dairy farmers, cooperative members and state dairy associations a free webinar at 1:30 p.m. ET on Wednesday, Dec. 2, to help them develop effective risk management plans. Participants will be able to ask questions about the year ahead and learn more about how farmers can manage their risk through expected turbulence.

NMPF Strikes Bipartisan Tone as Election Results Become Clear

NMPF congratulated President-elect Joe Biden and members of the incoming 117th Congress as election results became clear in November, pledging to work with both political parties to craft solutions to dairy and agriculture’s needs.

“Congratulations to President-elect Biden and the incoming members of the 117th Congress, who will have a lot of work to do in this country, from legislating to building common ground,” said NMPF President and CEO Jim Mulhern in a Nov. 9 statement. “Dairy is ready to do its part and work with the administration and Congress to face difficult problems successfully, in the bipartisan spirit we have always practiced and believed in.”

NMPF that same day elaborated its commitment to cooperation in a Dairy Defined column that acknowledged political realities while pledging to be part of their solution. “Looking at the political landscape that’s coming into focus after the 2020 elections – the most bitter and viciously fought in anyone’s memory — it’s safe to say that for at least the next two years, bipartisanship isn’t everything. It’s the only thing, as hard as that may be for some to accept at this moment,” the column said.

NMPF followed up on social media with a series of tweets congratulating dairy champions who were re-relected to Congress, keeping dairy at the front of attention in Congress as lawmakers consider coronavirus-related stimulus legislation and other agriculture-related programs.

Washington May Be Divided, But Bipartisanship Aids Dairy Gains

A bitter election season is winding down, and the shape of the Biden Administration and Congress is becoming clear. Just as clear is another political reality: Washington next year will be, if anything, more closely divided than it was before.

That places bipartisanship at a premium, as any lasting solutions to policy challenges will require cooperation from both sides of the aisle. Fortunately, dairy is well-situated to play an important role in the agreements that will be necessary to get anything done in Washington, as evidenced by the many bipartisan policy gains that bore fruit for dairy in 2020.

Consider this. At the beginning of this year, dairy prices were projected at levels sufficient to keep income-over-feed-costs margins high enough to avoid triggering payments under the Dairy Margin Coverage Program. Instead, as the coronavirus crisis seized the nation beginning in March, prices plunged, leading to emergency-milk dumping and triggering about $200 million in payments to producers who enrolled in DMC.

That assistance came about because of the 2018 farm bill, passed with the support of both parties and including a revamp of dairy risk management tools that literally paid off at an incredibly crucial time. Signup for DMC coverage in 2021 is open until Dec. 11, and with payouts projected for the first eight months of the year, it’s important that farmers take advantage of this important program. Doing so directly delivers the benefits of effective bipartisan policymaking to the farm.

On top of DMC assistance, bipartisan cooperation yielded several benefits to dairy this year that have proven crucial to farmers’ economic health. The Coronavirus Food Assistance Program (the latest round of which also has a Dec. 11 signup deadline) bolstered many farmers’ cash flows, with two rounds of payments providing disaster assistance averaging as high as $2.47 per cwt for all milk marketed in 2020 and softening the blows of pandemic disruptions for many farm families. In tandem with CFAP, the Farmers to Families Food Box program has fed those in need and kept processors in business, benefiting communities, preserving jobs and ensuring that farmers have supply chains to serve.

NMPF also helped ensure that programs implemented for small businesses nationwide worked for dairy. The Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loans (EIDLs), two coronavirus-related rescue measures implemented by the Small Business Administration (SBA), initially evolved from a hope to a frustration for dairy producers, who didn’t have equitable access to the programs. Working with allies, members of Congress from both parties, and administration officials, NMPF rectified many of the hurdles to the programs, increasing dairy’s access to the small business support as the SBA programs continued.

This more than $5 billion infusion of federal aid, and ongoing improvements in their administration, has been a difference-maker for dairies across the nation. Albeit, not all our farmers received the same level of support due to issues including payment limitations, organizational structures or market volatility. Nevertheless, in a telling statistic, the pace of dairy farm consolidation appears to be slowing this year – this is counterintuitive given the disruptions farms have faced, but a tribute to the effective efforts made to help farmers weather these storms.

All of it has been the product of fruitful collaboration, from within the dairy community as we at the National Milk Producers Federation and cooperatives and dairy associations across the country together pursued policy goals, to Capitol Hill, where champions in both parties spoke out on the need for dairy initiatives, and in the administration, which implemented programs funded by a Democratic House of Representatives and a Republican Senate for the betterment of dairy.

We’ve also fostered bipartisan collaboration on trade, with lawmakers from both parties calling for action against protectionist EU practices that inhibit dairy-export growth and defending the use of common cheese names. And we’ve worked for bipartisan agreement on immigration – a promising package passed in the House nearly one year ago stalled in the Senate as coronavirus demanded attention, but renewed efforts are expected in the next Congress.

In the near term, we remain hopeful that Congress may pass another COVID-19 relief package this month, given the acute strains our health-care systems and economy are facing now and for at least the next several months. Times of crisis demand unity – and despite the tendency toward reflective naysaying about Washington, consensus is possible to achieve, as the gains of the past year have shown. NMPF is advocating for additional relief for dairy producers that reflects the losses they have suffered, no matter the size of an operation. We are also urging Congress to approve a dairy donation program that can maximize dairy consumption among food-insecure populations.

In 2021 NMPF will continue its work as an advocate for dairy producers and their cooperatives in policy decisions, with our hallmark bipartisanship giving us a seat at the table wherever, whenever, and with whomever is making important decisions affecting farmer livelihoods.

Dairy Farms Innovating Their Way to a Sustainable Future

“Innovation” is a buzzword thrown about to the point of cliché. What it is varies with the circumstance.

For tech professionals, innovation could be an updated app or a streamlined solution. For teachers, it might be the newest way to engage students remotely. For those in health care, it may be a vaccine or more-effective treatment.

On dairy farms, innovation can look like … entomological wastewater filtration and effluent subsurface drip irrigation. Neither are buzzwords. Both are examples of how dairy is innovating its way toward a more sustainable future.

Royal Dairy in Royal City, Washington, wanted to enhance its waste-management system and reduce GHG emissions. Seeking solutions, Austin Allred, owner of Royal Dairy and a member of Northwest Dairy Association, piloted and adopted the BIDA® System developed by BioFiltro. The international wastewater filtration company uses worms within a passive aerobic system to clean wastewater from the dairy for irrigation. By investing in this technology, Royal Dairy has reduced its Total Suspended Solids (TSS) by 99% and reduced total Nitrogen (TKN) by 83%. As an added benefit, it also creates a rich fertilizer from the worm castings.

Another sustainability solution is found at De Jager Dairy North and California Dairies Inc., member McRee Dairy, both near Chowchilla, California, where drip irrigation is leading toward a future of better harvests and reduced emissions.

The two dairies partnered with Israeli company Netafim and Sustainable Conservation to develop and test a sub-surface irrigation system that delivers liquid dairy cow manure as a fertilizer close to the crop’s root system. This results in needing up to 35 percent less water while maintaining or even increasing crop yields in addition to reducing irrigation-related greenhouse gas emissions by 70 percent – saving costs and building resilience against droughts projected to worsen with climate change.

Projects like these, which put in the work today to develop solutions for a better tomorrow, are only two of the many on-farm innovations taking place on dairies. For those who spend their time planting as well as milking, carbon sequestration made possible by cover cropping and conservation tillage further maximize efforts like Allred’s. From improved anaerobic digesters and technology that separates nutrients, to feed additives that reduce methane emissions, dairy farming is continuing to advance – and lead – in adoption of sustainable technologies and practices in agriculture.

And they’re efforts the industry supports, with programs like the National Dairy Farmers Assuring Responsible Management (FARM) Environmental Stewardship initiative that measures a farm’s carbon and energy footprints. The initiative equips farmers with data that helps them understand their sustainability impact and chart a course for continued progress that’s essential to ensure industry progress toward the collective 2050 environmental goals of becoming carbon neutral or better; optimizing water use; and improving water quality.

On-farm innovation on dairies may not always be as obvious as an app or a vaccine. But they’re no less real or important. Dairy farms are sites of constant innovation, with farmers embracing new methods and new measures. And their proven track record of innovation is set to grow even further.

NMPF Offers Webinar on 2021 Dairy Economy as DMC Deadline Approaches

With deadlines for the Dairy Margin Coverage program and Coronavirus Food Assistance Program signups approaching on Dec. 11, the National Milk Producers Federation is offering dairy farmers, cooperative members and state dairy associations a free webinar Dec. 2 to help them develop effective risk management plans that can protect them in what’s predicted to be a volatile year in 2021.

NMPF Chief Economist Peter Vitaliano, creator of the monthly Dairy Market Report released earlier today, will be discussing the dairy price outlook for next year, and the value of risk management tools including Dairy Margin Coverage, in a webinar moderated by Chris Galen, NMPF’s Senior Vice President for Member Services, at 1:30 p.m. EST on Wednesday, Dec. 2. Participants will be able to ask questions about the year ahead and learn more about how farmers can manage their risk through expected turbulence.

The webinar will examine the milk and feed price forecast, forecast margins, and analyze how the Dairy Margin Coverage program will offer farmers protection against price volatility. To register, click here: https://us02web.zoom.us/webinar/register/WN_yr4QZ8HhSc-zdvujrg_zBA

Current USDA calculations predict that the DMC, adopted with NMPF’s leadership in the 2018 farm bill, will offer payments averaging $1.05 per cwt in the first eight months of next year for those at the maximum $9.50 coverage level. That vastly outstrips program premiums, making coverage for a farm’s first 5 million pounds of milk production a no-brainer, Vitaliano said. The DMC also offers affordable protection to all producers against price catastrophes and can be used in tandem with other risk management tools, such as the Dairy-Revenue Protection and the Livestock Gross Margin programs.

To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the recently updated online dairy decision tool offered through the USDA’s DMC informational page. Dairy producers can also visit NMPF’s page on risk management to learn more about DMC, CFAP and other tools to promote financial security for dairy operations.

NMPF Statement on EU’s Retaliatory Tariffs on Dairy

In response to the European Union’s (EU) imposition of retaliatory tariffs on U.S. agriculture exports, which escalates the dispute over World Trade Organization (WTO)-incompliant aircraft subsidies, National Milk Producers Federation President and CEO Jim Mulhern issued the following statement:

“Europe has long wielded restrictive and unjustified trade tactics to limit fair competition from U.S. agriculture, including dairy exports. While Europe may be authorized to retaliate, the U.S. has already taken deliberate action to address the WTO decision. Meanwhile, Europe has failed to come into compliance with their WTO obligations.

“As the U.S. works to hold Europe accountable to its WTO obligations, U.S. retaliatory tariffs against EU dairy products continue to play a key role in bringing Europe to the negotiating table and compelling them to fulfill their trade commitments. The EU’s restrictive trade policies that have resulted in a one-way flow of agriculture trade, and in particular dairy trade, to Europe is something that both the current and future Administrations need to keep in mind. In fact, the trade deficit between the EU and U.S. continues to widen as the EU uses unjustified trade tactics to erode U.S. market access and limit fair competition.

“One of the most egregious of these tactics is the EU’s misuse of geographical indications (GIs) to ban the U.S. from selling cheeses with common names, such as asiago, feta or parmesan. We commend USTR’s continued maintenance of GI cheeses on the WTO-authorized list of tariff retaliation as these tariffs help to temporarily level the playing field for U.S. producers.

“It’s time for Europe to not only comply with its WTO obligations, but also make a fundamental change to retire its discriminatory agricultural trade policies once and for all.”

NMPF Congratulates President-Elect Biden and Incoming Congress

The National Milk Producers Federation congratulated President-elect Joe Biden and members of the upcoming 117th Congress for their election victories, pledging to work for bipartisan solutions to the many challenges faced in agriculture and in the nation.

“Congratulations to President-elect Biden and the incoming members of the 117th Congress, who will have a lot of work to do in this country, from legislating to building common ground,” said NMPF President and CEO Jim Mulhern. “Dairy is ready to do its part and work with the administration and Congress to face difficult problems successfully, in the bipartisan spirit we have always practiced and believed in.”

NMPF has long been committed to working with both major political parties for sound, consensus-based public policy. More on NMPF’s approach to policy, why dairy farmers and the cooperatives they own possess a distinct voice within agriculture, and the crucial role they can play in the months ahead, can be found in this week’s Dairy Defined column.

Dairy Defined Podcast: How NMPF Pulled Off a Virtual Cheese Contest

The coronavirus pandemic has disrupted lives and transformed everything from schooling and shopping habits to … cheese contests. It’s not something most people think about, but in a time of social distancing and curtailed travel, how exactly does one gather, sample, compare and celebrate world-class cheeses, virtually?

This was the question National Milk Producers Federation coordinators Jamie Jonker and Miquela Hanselman set out to answer – and their solutions were cheese-tastic, to say the least. Judging conducted from multiple locations, donated storage spaces and smaller cheese blocks played their role – as did continual ingenuity from a team determined not to let a pandemic upend a cherished dairy tradition.

NMPF announced the winners of its first-ever virtual cheese contest – one believed to be the first nationwide U.S. cheese contest of the virtual era – last week. This week’s Dairy Defined Podcast tells the tale of the Cheese Contest That Could, featuring Jonker, Hanselman, and Head Cheese Judge Allison Reynolds of the USDA, facilitated by NMPF Communications Manager Theresa-Sweeney Murphy.

“I think it’s important that while we are in strange and unique times because of the pandemic, that some things still continue to happen as normal course of order,” said Jonker, NMPF’s staff scientist and a 16-year veteran of the competition. “The most rewarding part is that, unless we told people about how we did it, most people wouldn’t understand that it was any different from other years. And I think that’s a testament to the great team that we’ve got at National Milk, our cheese judges, and our co-ops that enter the cheese every year for really making it seem like nothing was different, even though everything was different.”

To listen to the full discussion, click here. You can also find this and other NMPF podcasts on Apple Podcasts, SpotifySoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

 

Bipartisan Congressional Letter Calls for Stronger U.S. Approach to Preserving Common Food and Wine Terms

A coalition of leading farm and agricultural groups are applauding a bipartisan letter sent today by 111 members of Congress urging stronger protections for American-made food and wine exports using common terms. This is an important message regarding the need for enhanced U.S. efforts to combat the European Union’s (EU) attempts to ban U.S. exports of cheese, meat and wine products that are labeled with common terms – such as parmesan, bologna or chateau.

“Congress has spoken loudly; it is time for stronger action by the U.S. government. For far too long, Europe has used unjustified trade barriers to block competition from high-quality American-made cheese, meat and wine exports. Europe is undermining global trade rules and weakening intellectual property system protections internationally. Today’s letter is an important reminder that we must raise the bar in our efforts in order to prevail in creating agricultural trade policy that works for the world, not just the European Union,” said Jaime Castaneda, Executive Director of Consortium for Common Food Names.

The letter asks the U.S. Trade Representative (USTR) and U.S. Department of Agriculture (USDA) to make safeguarding common food and wine terms a core policy objective in all current and future trade negotiations. The effort was led by Reps. Jim Costa (D-CA), Jodey Arrington (R-TX), Angie Craig (D-MN), Dusty Johnson (R-SD), Ron Kind (D-WI), Mike Gallagher (R-WI), Jimmy Panetta (D-CA) and Mike Kelly (R-PA).

“The EU’s ban on common cheese terms has already impeded U.S. dairy exports but even more severe consequences for our industry lie ahead if the EU is allowed to continue these unfair trade practices. Preserving export opportunities for American-made cheeses and other products labeled with common terms must take priority in all future trade negotiations. I applaud Congress and the leaders of this effort for setting this important precedent in defense of American-made exports,” said Tom Vilsack, president and CEO of U.S. Dairy Export Council.

“Creating false barriers to block exports denies families around the world the high-quality food America’s farmers and ranchers produce. It’s trade manipulation. We applaud the U.S. government for its efforts to remove unfair trade practices that keep our nation from competing in the global marketplace,” said American Farm Bureau Federation President Zippy Duvall.

“The European Union has for too long unjustifiably and erroneously attempted to restrict trade in common food name products, including meat exports from the U.S. The policy advocated in the bipartisan letter sent today to USDA and USTR will advance critical safeguards for common food name products in international trade and will enable America’s meat and poultry packers and processors, agricultural producers and food manufacturers to compete on a level playing field with their counterparts in the EU. We thank members of Congress for their leadership, and we stand ready to work with the Administration to defend against anti-competitive and protectionist policies pursued by trading partners that serve only to impede U.S. meat and poultry exports,” said Julie Anna Potts, CEO of the North American Meat Institute.

“NASDA Members work tirelessly with the federal government to open new doors for agricultural producers around the world. We encourage the U.S. Trade Representative (USTR) and U.S. Department of Agriculture (USDA) to amplify the importance of common food and wine terms as a core policy objective to successful free trade negotiations in the future. Doing so will ensure consumers are able to access the full bounties of our farmers and ranchers around the world,” said National Association of State Departments of Agriculture CEO Dr. Barb Glenn.

“America’s dairy farmers have been unduly harmed by the EU’s efforts to limit market opportunities for U.S. dairy products. For years, the EU has sought to ban high-quality American-made cheeses, putting U.S. dairy jobs at risk and limiting economic growth in the rural communities that rely on a healthy dairy industry.  I appreciate the important work being done by Congress to ensure that U.S. trade negotiators must have all necessary tools at their disposal to fight back against the EU’s destructive agenda,” said Jim Mulhern, president and CEO of National Milk Producers Federation.

“We have watched time and again as the EU has gone well beyond protecting legitimate GIs to erect trade barriers that benefit their own producers at our expense. The recent EU-China agreement on GIs is a perfect example of how the EU abuses GIs for their own gain. The U.S. must do more to ensure a level playing field for common food names, grape varietal names and traditional terms and we are grateful to these Representatives for supporting this effort,” said Bobby Koch, President and CEO of Wine Institute.

In July, 61 Senators sent a similar letter requesting that the U.S. government enhance protections for common food and wine terms.

 

FDA Must Enforce Fake-Dairy Rules, NMPF Tells Agency Ombudsman in New Advocacy Phase

With FDA giving little indication of promised action on proper labeling of imitation dairy products, the National Milk Producers Federation today asked the agency’s ombudsman to ensure that rules are properly enforced.

“Allowing unlawfully labeled ‘plant-based’ imitation dairy foods to proliferate poses an immediate and growing risk to public health; it is a clear dereliction of the FDA’s duty to enforce federal law and agency regulations,” wrote NMPF President and CEO Jim Mulhern in the letter, sent to Dr. Laurie Lenkel, ombudsman for the U.S. Food and Drug Administration. “The FDA’s Office of the Ombudsman must intervene to break the bureaucratic logjam that is adversely affecting consumers. Doing so would fit squarely within the Office’s own mission to ensure even-handed application of FDA policy and procedures.”

The FDA ombudsman, based in the agency commissioner’s office, “serves as a neutral and independent resource for members of FDA-regulated industries when they experience problems with the regulatory process,” according to the agency. NMPF is urging the ombudsman’s office to take appropriate action to remedy the FDA’s lax approach to enforcing its own rules on the use of dairy terms on products containing no dairy ingredients, which have proven impacts on public health – a new phase of advocacy brought about by the agency’s regrettable inaction. The American Academy of Pediatrics and other organizations have offered evidence of nutritional deficiencies caused by confusion over the contents of plant-based versus dairy beverages.

NMPF last year released its own road map offering solutions to how public health, product integrity and free speech could be protected through updated regulations. NMPF also supports the DAIRY PRIDE Act, a potential legislative prod for FDA action, and has asked FDA commissioner Dr. Stephen Hahn to follow up on the pledge he made nearly one year ago to make fake-dairy labeling a high-priority issue at FDA.