2023 Promises Policy Progress

A Washington truism is that the period that occurs after an election cycle is complete, but the next one hasn’t yet overtaken everyone’s attention, is when policy gets done. That makes it important for this industry to push for significant progress in 2023, as the 118th Congress convenes and clear policy challenges lie ahead.

High on NMPF’s priorities is leading the way toward federal adoption of a modernized Federal Milk Marketing Order system for producers that promotes a stable industry and provides fairer, more-up-to-date pricing for the nutritious and necessary products dairy farmers and their cooperatives provide. We made tremendous progress on this issue in 2022, driving a consensus approach that gathered many of this industry’s smartest minds and, through more than 100 committee and task force meetings of NMPF Board members and producers, and marketing experts from our member cooperatives, from all regions of the country, arrived at a proposal unanimously endorsed at our annual meeting in October. That’s a lot.

But there’s much more required to bring these efforts to fruition – much, much more. NMPF’s proposal itself isn’t quite complete – an important part of the plan, recommendations on updates to the nation’s  Class I price surface, are expected this month. From there, we will seek a final endorsement that prepares the way for us to request a USDA federal order hearing. That also will require extensive preparation, as the national consensus we’ve built among NMPF members will then form the basis of a conversation in which the entire industry will participate.

We welcome that conversation, which undoubtedly will include some good and not-so-good ideas from multiple interests. But throughout that conversation – and the hearing, and ultimately a producer vote – it will be critical to transcend narrow self-interest and work in a spirit of good faith to ensure that FMMO modernization is truly in the best interests of all producers. NMPF has kept that goal throughout; by crafting the most thoroughly researched, discussed, vetted and voted-upon of all proposals, we are in a strong position to meet the leadership challenge that falls to us as the nation’s dairy producer organization. We look forward to meeting this challenge, which will benefit all of dairy for years to come.

At the same time the FMMO discussions advance, we will be very active in shaping the farm bill due later this year, along with engaging in other legislative opportunities (and challenges) that come dairy’s way.

The twice-a-decade reauthorization of federal farm and nutrition programs sets the rhythm of ag policy in Washington, but it’s also important to remember that, in the end, the 2023 Farm Bill is simply another vehicle for advancing better policy, and it’s far from the only one available. Unlike the previous two farm bills, in which dairy policy clearly required significant change, this time around the main farm bill dairy safety net and risk-management programs – the Dairy Margin Coverage Program created at NMPF’s insistence, and the Dairy Revenue Protection and Livestock Gross Margin programs, which NMPF’s efforts made workable for broad producer participation – need evolution more than revolution.

Let’s not forget that the Farm Bill has many components, including sections governing trade, conservation and other areas critical to agriculture, so we’ll make sure all our priorities in the bill are addressed while pursuing other legislative goals, which range from financial incentives that support dairy’s Net Zero vision to immigration programs that work for dairy, through any means possible.

FMMO modernization and the farm bill alone would be more than enough to fill one year of Washington policy work. But of course, these two items are only the beginning of a long list of what must get done, from other legislative initiatives to federal nutrition policy proposals to overcoming regulatory challenges to expanding overseas markets The Biden Administration needs to pick up the pace on new trade deals even as it aggressively enforces existing ones. Yet another iteration of EPA’s Waters of the U.S. rule – this one going the wrong direction for agriculture – requires a strong response. And of course, we’re still waiting for FDA to give its guidance on labeling of plant-based dairy imitators, eternally hoping the agency charged with enforcing accurate nutrition labeling does what’s right for consumers.

Each year in Washington represents a new beginning. Opportunities are plentiful, and opportunities go to those who seize them. We embrace the challenge and expect that, working with the community that moves dairy forward, we can achieve great policy progress in the year ahead.


President & CEO, NMPF

Dairy Engaged in Busy Lame-Duck Congressional Session

Congress is working to finish several key measures before adjourning for the year, one with special urgency for Democrats as Republicans take control of the House of Representatives in January.

While Republicans netted enough House seats to flip the chamber as a result of November’s elections, they did not win as many seats as they were expected and did not reclaim control of the U.S. Senate, making any shifts in the upcoming 118th Congress potentially less dramatic than some analysts anticipated before the election. Members are hoping to wrap up business that includes dairy farmer and cooperative priorities. Among highlights:

  • Getting ag labor reform across the finish line. The Senate is currently working on its own ag labor measure, refining and improving upon the reforms provided by the Farm Workforce Modernization Act, a bipartisan House-passed measure that would provide permanent legal status for current farm workers and their families and reform the H-2A agricultural guest worker program to include dairy and other year-round workers. Senators in both parties have been seeking to strike agreement on a compromise version that can garner 60 Senate votes. NMPF continues to work closely with Senate negotiators to seek a path forward for any such final measure.
  • Passing a fiscal year 2023 spending bill to fund the government. NMPF continues to advocate for enhanced funding for the Food and Drug Administration to review and approve animal feed ingredients that can reduce enteric methane emissions from livestock by as much as 30 percent, which will be critical as dairy seeks to reach its goal of achieving a net zero greenhouse gas footprint by 2050.
  • Another key dairy priority in appropriations is securing additional funding for dairy farmers whose reimbursements under USDA’s Pandemic Market Volatility Assistance Program were limited by the program’s five-million-pound per producer cap, as well as those farmers unable to receive program funds because their milk was not pooled on a Federal Milk Marketing Order but still endured similar price losses. USDA created the program last year to partially reimburse farmers for unintended COVID-19 pandemic losses caused by the heavy weighting of federal dairy purchases toward cheese combined with a change to the Class I mover formula in the 2018 Farm Bill.

Congressional Balance Affects Dairy Policy but Doesn’t Shift Priorities

Control of the House of Representatives remains in doubt nearly one week after last Tuesday’s elections. But regardless of who is in charge in 2023, dairy’s priorities will move forward, says Paul Bleiberg, NMPF’s Senior Vice President for Government Relations, in a Dairy Defined podcast released today.

“The basic policy priorities remain the same,” said Bleiberg. “There are some areas where we might have more support from Republicans, some where we might have more support from Democrats, some where we might have more support on regional lines, and it’s really a question of strategy. Who’s going to be on the Agriculture Committee? Who’s going to be on the Appropriations Committee or the Ways and Means committee? Who are the members that we might go to kind of champion different priorities in those or other committees? That sort of is subject to those dynamics, but our priorities will be our priorities.”

You can also find the podcast on Apple PodcastsSpotifyGoogle Podcasts and Amazon Music. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

Dairy Progress Possible on Capitol Hill, NMPF’s Bleiberg Says

With rising energy costs and a war effort riveting attention in Washington, 2022 is turning out to be an unusually busy year on Capitol Hill – one that holds opportunity for dairy, said Paul Bleiberg, Senior Vice President of Government Relations for the National Milk Producers Federation, in a Dairy Defined podcast released today.

“Election years can sometimes be quiet in a lot of ways. But there’s still a lot of sausage making that goes on,” he said. “We are hopeful that we’ll see some progress on supply chain legislation, in particular the Ocean Shipping Reform Act that our trade team has worked really hard on, to move forward in a variety of different contexts. And then that farm bill process is just going to get more and more significant as the date gets closer.”

Bleiberg also in the podcast discusses the prospects for “climate-smart” agricultural legislation to pass Congress this year and looks at gains for dairy in recent spending legislation.

The full podcast and transcript are below. You can find and subscribe to the podcast on Apple Podcasts, Spotify,   Google Podcasts and Amazon Music under the podcast name “Dairy Defined.” Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

NMPF Website Update Offers Enhanced Member Resources

NMPF today announced important updates to its website, nmpf.org, designed to offer more information to dairy farmers and their cooperatives as well as an easier-to-navigate interface.

Updates to the website include an improved menu navigation, expansion of key issue areas and a streamlined sign-up for users seeking to stay up to date with the latest news from NMPF. Making this information more readily available for members serves NMPF’s mission and makes nmpf.org even more essential to the dairy community, said NMPF President and CEO Jim Mulhern.

“Rich member resources and an easy-to-understand website are important parts of our service to our member cooperatives and everyone with an interest in dairy,” said Mulhern. “We strive to continue to be the one-stop-shop for policy information important to the dairy community.”

NMPF’s website is only one of many offerings available for the dairy community to learn more about the organization’s advocacy and service for its members. For more information and to sign up for NMPF publications, visit www.nmpf.org/subscribe.

More Work Begins When New Dairy Programs Take Effect

Achieving policies that benefit the nation’s dairy farmers is one of the most gratifying parts of working on their behalf. Since the COVID pandemic began in 2020, there has been no shortage of federal acronyms – CFAP, PPP, EIDL, etc. – for programs to help family farms through difficult times. But these initiatives are also complex and imperfect, which is why once a program takes effect, the work has often only begun.

In dairy, USDA is currently implementing two important new initiatives – the Dairy Donation Program or DDP and the Pandemic Market Volatility Assistance Program or PMVAP – while another major program, Dairy Margin Coverage, prepares for 2022 signup. Even as we’re still working to improve them, it’s crucial over the next few months that the dairy community understand and benefit from these programs. As always, we at NMPF will do our best to both lead and assist as these important initiatives roll out.

The Dairy Donation Program, enacted by Congress late last year, represents a very important advance for the industry. We’ve been proud to shepherd it through the legislative and regulatory process, from proposing the initial idea to encouraging its use for all forms of dairy products, a change from the previous Milk Donation Reimbursement Program, which provides limited reimbursements for certain fluid milk product donations. We’re now actively working to help implement DDP, both through our partnership with Feeding America and by informing our members about the program on everything from how to set up relationships between dairy cooperatives and vendors to the ins and outs of how some processing costs will be covered.

It’s important to remember that donations can be reimbursed retroactive to Jan. 1, 2020, and that for now, only the first $400 million of donations will be compensated, making it smart to begin relationships with food banks and other charities that can receive and donate dairy foods. Although USDA expectations are that the full amount of funding will be used over several years, the sooner we demonstrate the benefits of DDP by exceeding USDA’s expectations, the earlier will be able to work to pursue additional resources.

Strengthening ties between dairy community farmers and the cooperatives they own with those helping families who will benefit by receiving dairy products is a great win-win, as it supports the resilience of our communities and ensures that everyone benefits from nutritious dairy products.

The Pandemic Market Volatility Assistance Program (PMVAP) is an important – if still incomplete — gain for dairy. We worked closely with USDA to demonstrate that last year’s price volatility harmed farmers and required a remedy, and PMVAP is an important first step toward recouping the $750 million farmers lost because of the 2018 Farm Bill’s change to the Class I mover that needs to be followed by an eventual fix to the mover itself. It wouldn’t have happened without months of careful consultation between NMPF and USDA that led to the program, which restores $350 million of those losses.

That amount, to be sure, doesn’t fully address the past losses, nor does it prevent future shortfalls. Nor does the program’s approach to allocating funds adequately account for differing farm sizes or regional impacts. But for all its faults, it’s important that farmers and cooperatives maximize PMVAP’s benefits, even as we work with advocates in Congress to obtain additional assistance. Milk handlers who will distribute the funds are already in discussion with USDA on how to do it, and farmers should receive payment during this year’s fourth quarter. Meanwhile, we are working with our members to secure the necessary improvements, and our Economic Policy Committee is discussing a more fundamental fix to various FMMO issues, including the Class I problem itself.

Finally, farmers should be on the lookout over the next few weeks for information on 2022 signup for the Dairy Margin Coverage program, the main federal safety net for dairy farmers that arose from efforts we and the dairy community made to improve assistance in the 2018 farm bill. DMC has something for every producer – inexpensive catastrophic-level coverage for larger producers and cost-effective margin insurance for everyone’s first five million pounds of milk annually. For this year’s signup, USDA improvements to the feed-cost formula and the use of updated production data – both of which fulfill longstanding NMPF goals – make the already compelling case for DMC even stronger, with payments that this year so far are averaging out to 7 percent more than they otherwise would have been just from the alfalfa-price adjustment alone.

Working to strengthen dairy farmers is why we’re here, and we’re proud of these gains. But the puzzle pieces are many, and the picture isn’t complete until they’re properly put together. We’re excited to help our members and the dairy community with assembly over the next several months, and beyond.