Dairy Priorities Included in 2022 Funding Package

NMPF helped secure important financial support for numerous priorities in the final government spending bill for Fiscal Year 2022, which President Biden signed into law in March. Key dairy provisions include:

  • $6 billion for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and $440 million for commodity assistance programs, including $332 million for the Commodity Supplemental Food Program and $81 million for TEFAP administration. Additionally, the measure provides $3 million for the Healthy Fluid Milk Incentives Projects authorized in the 2018 Farm Bill to create pilot programs to increase milk consumption among SNAP households. This represents an increase of $2 million over FY 2021.
  • $486 million for the ReConnect program, the USDA Rural Development program working to provide broadband service to eligible rural areas.
  • $25 million for the Dairy Business Innovation Initiatives program, which provides direct technical assistance and grants to dairy businesses to further the development, production, marketing, and distribution of dairy products. This is an increase of $1 million over Fiscal Year 2021.
  • $10 million for the Farm and Ranch Stress Assistance Network, a USDA program aimed at connecting those working in agriculture to stress assistance and support programs.
  • $1 million for FDA to seek solutions on regulating ingredient claims on animal feed additives as foods, not drugs. NMPF led efforts in Congress to secure this important component of dairy’s sustainability efforts and policy agenda that will provide a jumping-off point for additional work.

NMPF will continue building bipartisan support for dairy programs and issues to help ensure the needs of dairy farmers and the cooperatives they own across the country are heard and met.

NMPF’s Bjerga on Rising Input-Cost Impacts

NMPF Senior Vice President for Communications Alan Bjerga discusses the impact of higher input costs for dairy farmers on RFD-TV. Responses to higher prices vary widely depending on individual farm factors, such as whether a farm produces its own feed or has to buy it. Meanwhile, the outlook for near-record prices is raising hope among farmers, but is tempered by higher costs and greater global uncertainty.


NMPF Leads Dairy in FMMO Discussion

 

 

NMPF President and CEO Jim Mulhern called for dairy farmers from all regions to work together for improvements to the Federal Milk Marketing Order system in his remarks at NMPF’s annual meeting in Las Vegas as shown on RFD-TV. Positive changes for dairy producers is possible through NMPF leadership because of the nature of the organization as an industry leader, said NMPF Senior Vice President of Communications, Alan Bjerga.

Chairman Mooney Highlights Dairy’s Value at Annual Meeting

 

NMPF Chairman Randy Mooney discusses how dairy proved its worth to U.S. consumers during the COVID-19 pandemic at the organization’s annual meeting in Las Vegas, NV. Also, NMPF Senior Vice President of Communications Alan Bjerga discusses some of the meeting’s key agenda items, including the industry’s sustainability commitments and the need to explore milk-pricing reform.

Vaccine Information, Winter Emergency Resources Offered Online

NMPF released Feb. 9 a dairy farmer’s guide to the COVID-19 vaccine rollout and expanded its natural disaster resource page to include information for preparing for and dealing with winter weather emergencies on a dairy farm, part of its commitment to providing timely and relevant information to its members.

Vaccinating essential workers, including the dairy workforce, is important because of their role in maintaining critical infrastructure operations and their increased risk of getting and spreading COVID-19. NMPF’s guide to the COVID-19 vaccine rollout compiles state-by-state vaccine information, tools for communicating with employees, and answers to frequently-asked-questions about the vaccine.

Later that month, widespread freezing temperatures and power outages from Winter Storm Uri prompted NMPF to update its natural disaster page with winter weather emergency resources for dairy farmers. The page includes information from trusted sources on preparing for emergencies and power outages, workforce safety and animal care during extreme winter weather.

Because emergencies and disasters can occur at any time and without warning regardless of where a farm is located, NMPF urges all dairy producers to consider developing or updating comprehensive Emergency Action Plans on their farms.

Trade Agreement Partners Colombia, Panama Weigh Dairy Import Restrictions

NMPF, working in concert with USDEC, provided early warning to U.S. trade officials in February regarding brewing safeguard tariff and regulatory threats in two key U.S. Free Trade Agreement partners’ markets: Panama and Colombia. In discussions with USTR and USDA officials in February, NMPF and USDEC underscored the importance of preserving commitments made by each country through the free trade agreements in place with the U.S. for nearly a decade.

Sparked by growing protectionist sentiment among domestic dairy interests, the Colombian and Panamanian governments are faced with calls to apply tariff safeguards on imported cheese and milk powder from the U.S. In the case of Panama, government official have used safeguard tariffs on certain cheese and yogurt products since imports have reached levels that automatically trigger the permissible safeguards under the FTA. In the case of Colombia, local dairy producers are campaigning for safeguard tariffs to be levied on U.S. milk powder imports, a move that would upend U.S. access to its 10th-largest export market. Additionally, each government is considering labeling and other regulatory changes aimed at making U.S. dairy imports more difficult.

As both countries consider protectionist measures, NMPF will continue to work with USDEC and the U.S. government to preserve access to these markets.

Questionable Shipping Practices Prompt NMPF Action with Maritime Commission

NMPF staff, working together with the U.S. Dairy Export Council (USDEC), joined several agriculture organizations last month to press the Federal Maritime Commission to help address severe shipping-related challenges plaguing dairy and other U.S. agricultural sectors.

A shift in U.S. consumer preferences for stay-at-home goods has led to a surge in imports from Asia, driving up container demand around the Pacific Rim. Meanwhile, several agricultural exporters, including U.S. dairy, are struggling with cancelled shipments, exorbitant detention and demurrage charges, and broken contracts as shipping companies are moving containers and vessels quickly back to Asia. Freight costs are netting 20 to 30 times more from Asia to the U.S. than vice versa and carriers are restricting availability of containers to rural points of origin in the interior U.S., preferring coastal drop-off and pickup.

In multiple meetings with maritime commissioners in February, NMPF and other organizations representing agricultural exporters stressed the urgent need to step-up regulatory compliance on detention and demurrage guidelines issued last year and to explore ways to address the container shortage issues. Alongside these organizations, NMPF is pursuing congressional outreach to encourage tougher FMC enforcement while working with other sectors to evaluate the need for changes to legislation to better equip the FMC to deal with such issues.

Dairy Leadership Crucial in U.S., Global Climate Debate

The recent below-zero temperatures in Texas and a blast of late-winter snowstorms aren’t the only signals that climate conversations are destined to become more prominent in agriculture. The Biden Administration is showing its desire to participate actively in global decision-making, rejoining the Paris Climate Accord and making climate an early focus of executive orders. Congress is expected to tackle climate-change legislation this session. And newly confirmed Agriculture Secretary Tom Vilsack has pledged to make climate change – and climate-friendly incentives for farmers – central to his agenda in his leadership return at USDA.

And that’s just in the United States. Globally, climate concerns and food-production discussions are merging, with sustainability increasingly moving from buzzword to marketplace demand, to potentially a requirement to participate in the global food system.

The United Nations is convening a Food Systems Summit in September in which agriculture and sustainability will be the central discussion, and we are working shoulder-to-shoulder with our colleagues at Dairy Management, Inc. and the U.S. Dairy Export Council to make sure U.S. dairy’s leadership is recognized and to partner with other organizations in underscoring the nutritional value of our products as well as the sustainability advances already achieved. But the UN conversation could easily turn negative for dairy, given the role that anti-animal agriculture voices are playing in driving it.

Real movement domestically – and real threats globally – make it imperative that dairy be active as important choices are made. Fortunately, the dairy community, through the hard work of farmers and support for their efforts throughout the entire supply chain, has a proactive, positive story to tell. The Summit offers an opportunity we must seize to tell our story, which is essential in this new era.

We in dairy know just how effective we are in sustainably managing our operations. The U.S. dairy industry is responsible for less than two percent of the nation’s greenhouse gas emissions. Much of that is methane, a relatively short-lived gas that has an impact many scientists say is likely overstated. Meanwhile, according to the Food and Agriculture Organization of the United Nations, North American dairy – which is dominated by U.S. production – is the only dairy region in the world where absolute emissions decreased from 2005 to 2015, by a total of 5 percent. That occurred even as milk production increased over that same period.

Dairy is already part of agriculture’s climate solution, but U.S. dairy is going even further. Our Net Zero Initiative will make domestic dairy production carbon-neutral by 2050 and is accompanied by quantifiable, verifiable goals that will guide the industry to that destination.

We are also playing a leading role in seeking the public-policy solutions and incentives necessary to make plans reality. Last week we announced our membership in the Food and Agriculture Climate Alliance, a coalition of organizations across food, agriculture and the environment that collectively seek voluntary, incentives-based and market- and science-driven approaches to tackle climate policy and build resilient rural communities. Through leading by example in agriculture and building consensus among its constituents, U.S. dairy farmers can meet ambitious goals that will improve our prosperity as well as the planet’s health, with benefits for all.

But before we paint an outlook that’s too rosy, an important note: For all our leadership within the U.S., numerous vocal advocates in the world are in a different place.

While we seek solutions, others, many of whom have an interest in agriculture but live outside it, are calling for certain farmers not to be part of a “solution.” Instead, such farmers would be swept up (and perhaps swept aside) by “revolution,” one they envision would create a sector with less (if any) livestock, fewer farm inputs, and a bias against technological innovation. As U.S. dairy relies more on global markets, and as global actions on climate-change increasingly affect how the U.S. does business, these realities become ever-more-important to address.

As always, the solution is to never shrink from the challenge. The common goal of improving the planet requires neither surrendering to a misguided agenda nor ignoring the problem. Again: We all know what a positive story dairy can tell and the sizable sustainability investments that the U.S. dairy sector in particular is making. Tangible progress on emissions. Innovative practices that can be widely adopted in all regions, on farms of all sizes, with proper incentives. Ambitious goals backed by data. The reality is the world would be better off if the rest of the global dairy industry became as efficient – in milk production and resource use – as U.S. dairy. But much of the global audience, through misunderstanding or simple self-interest, is skeptical of this message.

This is our task in advocacy. As we’ve seen in recent years, in our response to the coronavirus crisis and to our own economic challenges, we can get things done when we’re united and clear in what we set out to achieve. Dairy can and will be – and in fact, always has been – a positive contributor to sustainability solutions. Our products nourish people around the world, and we care for its resources well. Tumultuous weather will always be with us – but with growing shifts in climate, those challenges are becoming more calamitous. We are rising to the challenge as well, as a domestic and global solution and as an informed voice in all debates. We look forward to the opportunity.

FARM Program’s Yeiser Stepp on Rethinking Dairy Engagement

Emily Yeiser Stepp, NMPF’s vice president for the National Dairy FARM Program, discusses how 2020 changed the way dairy-sector engagement has pivoted into the virtual world. She speaks on RFD-TV.

https://www.rfdtv.com/story/43427310/rethinking-engagement-strategies-in-the-dairy-industry

NMPF Statement on Additional COVID Relief Package

“NMPF is grateful to Congress for working to enact additional COVID-19 stimulus legislation. The pending bill includes critical additional agriculture and nutrition support intended to help farmers, rural communities, and food-insecure households throughout the nation.

“Throughout the COVID-19 pandemic, the federal government’s strong response has proven invaluable to dairy producers as they keep working, day-in and day-out, to sustainably provide families here at home and abroad with an abundant supply of nutritious dairy products. However, while the availability of a vaccine is cause for hope, difficult months remain ahead.

“NMPF appreciates the additional $3.6 billion Congress would provide to bolster food supply chains and facilitate additional purchases and donations of dairy and other food products to those who need them most. NMPF also supports the legislation’s increased funding for the Supplemental Nutrition Assistance Program and the Commodity Supplemental Food Program, which will provide dairy and other nutritious foods to those households and senior citizens who have faced added hardship and unique struggles during this challenging period.

“Finally, the package includes important provisions that strengthen resilience and improve equity in rural America and take critical steps to improve the livelihoods of historically underserved farmers, including debt relief and access to credit. These actions will better position all parts of the country to recover from the stresses of the pandemic and strengthen our communities for years to come.”

Milk-Production Increase Outstripping Supply Gains, NMPF’s Vitaliano Says

Milk production is increasing faster than demand is recovering, making 2021 a challenging year for dairy farmers, said Peter Vitaliano, NMPF’s chief economist, in an NMPF podcast released today.

“On balance, things are improving a little bit” in dairy demand, “but they’re still falling short of the milk production rate of increase,” Vitaliano said. Still, bright spots remain for the medium- and longer-term dairy outlook. Demand for U.S. dairy exports is at record levels, and demand for dairy away from home should increase as the COVID-19 pandemic fades, he said.

The full podcast is here. You can also find this and other NMPF podcasts on Apple Podcasts, SpotifySoundCloud and iHeart Radio. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.