Tag: dairy safety net

DMC Returns to Payments in August

Posted on by Theresa Sweeney

Falling milk prices and rising feed costs pushed margins in August under the federal Dairy Margin Coverage Program to levels that are triggering payments for the first time this year.

The August Dairy Margin Coverage margin was $8.08/cwt, down $1.84/cwt from July’s margin and generating a payment of $1.42/cwt for Tier 1 coverage at $9.50/cwt under DMC, the main federal payment program for dairy producers. The August U.S. average all-milk prices of $24.30/cwt was $1.40/cwt lower than the previous month; meanwhile, the DMC feed cost rose $0.44/cwt from the previous month to $16.22/cwt.

August’s milk-price drop was the third consecutive monthly after a streak of record high U.S. average milk prices that ended in May. Feed costs, meanwhile, reached a second straight monthly record in August. The three cost components of the feed formula have all generally contributed to its steady rise during the past ten months, but the price of corn was the main driver this spring, while soybean meal and premium alfalfa hay prices have taken over this lead role during the past two months.

Available forecasts currently indicate that small margin coverage payments may be generated for $9.50/cwt coverage during the remaining months of 2022. 17,776 dairy operations are currently enrolled in the Dairy Margin Coverage program. The decline in margins to payment-trigger levels, unexpected earlier in the year, underscores the affordability and value of DMC. The August payment alone would cover about three-quarters of the single-year annual premium for $9.50 Tier I coverage for an enrolled operation.

Risk Management Programs Critical to Dairy’s Future, Farmers Tell Congress

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) today commended farmers from member cooperatives who are speaking up for dairy’s needs at farm bill listening sessions held by members of Congress.

“From sustainability and trade to providing an adequate safety net to producers of all sizes, dairy farmer voices are critical to crafting federal farm programs that serve the entire nation,” said Jim Mulhern, president and CEO of NMPF. “We commend the farmers who own our member cooperatives for sharing their insights. We also thank Congress for making sure that dairy is heard as the next Farm Bill begins taking shape.”

A session in Minnesota was held today, following an event in Washington state last week. Both are part of a series of sessions being held to prepare for the 2023 Farm Bill.

Farm bill safety net and risk management programs are critical to the economic viability of American dairy producers, farmers told members of the House Agriculture Committee during the sessions. Farmers representing NMPF member cooperatives Associated Milk Producers Inc., Dairy Farmers of America, Northwest Dairy Association and Land O’Lakes, Inc. shared their perspectives on the upcoming farm bill during the events hosted by Rep. Angie Craig, D-MN, and Rep. Kim Schrier, D-WA.

During today’s listening session held in Northfield, MN, Steve Schlangen, chairman of Associated Milk Producers Inc. and an NMPF executive committee member, emphasized the value of the Dairy Margin Coverage (DMC) program. Created in the 2018 Farm Bill at NMPF’s urging, DMC is designed to ensure that dairy farmers can protect themselves against financial catastrophe and market fluctuations.

Schlangen urged the committee to strengthen the program by carrying the Supplemental Dairy Margin Coverage update over into the next Farm Bill to compensate farmers for modest increases in production since the program formula was created in 2014. He was joined by Charles Krause, a Dairy Farmers of America farmer from Buffalo, MN, and KC Graner, a Land O’Lakes ag retail member-owner from Truman, MN, who among other topics supported the Dairy Donation Program to connect dairy products to food insecure families and additional funding and policies to encourage and scale climate-smart ag practices.

The House Agriculture Committee also held a listening session last Friday in Carnation, WA. Dairy farmers and Northwest Dairy Association member-owners Jeremy Visser of Stanwood, WA and Jim Werkhoven of Monroe, WA in their remarks urged committee members to ensure that risk management tools work effectively for farmers of all sizes, and to provide robust funding for trade promotion programs like the Market Access Program.

Dairy Unites Around National Dairy Month

Posted on by Alan Bjerga

 

National Dairy Month each June means a chance to celebrate all that U.S. dairy does to nourish consumers around the world and highlight the industry’s success, advancements and efforts to build a better future. RFD-TV’s Janet Atkison hosts a round-table discussion with DMI’s Jessica Learman, NMPF’s Alan Bjerga and Galen Smith, owner of Coldspring Farms in Deming, WA.

Dairy Farmer Reinforces Value of Safety Net, Calls for FMMO Update During Farm Bill Hearing

Posted on by Theresa Sweeney

Seventh-generation Pennsylvania dairy farmer Lolly Lesher emphasized the importance of the farm bill safety net program and called for milk pricing improvements today during a House Agriculture Committee hearing. Lesher, a member-owner of Dairy Farmers of America, testified on behalf of the cooperative and the National Milk Producers Federation (NMPF) during a congressional review of dairy provisions in the Farm Bill.

The Farm Bill, a twice-a-decade reauthorization of USDA programs, encompasses a variety of provisions important to dairy farmers including risk management, pricing policy and support, conservation, trade promotion, nutrition and rural development programs.

Lesher thanked Ranking Member G.T. Thompson (R-PA) for his years of advocacy on behalf of dairy farmers in Pennsylvania and beyond, and for his key role in overhauling the dairy safety net during the last farm bill. She also expressed her gratitude to Chairman David Scott (D-GA) for his work and for convening today’s hearing.

Revised at the urging of NMPF in the 2018 Farm Bill, USDA’s Dairy Margin Coverage program offers effective margin protection for small and mid-sized farms and affordable catastrophic coverage for large farms. Lesher, whose family milks 240 cows in southeastern Pennsylvania, said in her written testimony that the program “has provided important security to [her] family’s farm.” She urged the committee to make additional updates to reflect current production, so the program remains a viable safety net.

Lesher also highlighted the need for improvements to the Federal Milk Marketing Order (FMMO) system, as evidenced by the heavy revenue losses incurred by dairy farmers nationwide from a milk pricing change made in the previous farm bill.  “The change made to the Class I mover combined with the government’s heavy cheese purchases cost dairy farmers over $750 million in revenue in the last six months of 2020 alone,” she said.

The dairy industry, under NMPF’s leadership, is seeking consensus on a range of FMMO improvements, including the Class I mover, that can be taken to USDA for consideration in a federal order hearing. “We recognize that for our efforts to succeed, we must all work together, giving a bit to get a bit. It’s just too important for our future,” Lesher added.

“We appreciate the opportunity to share what has worked well—and what needs to be modernized—to meet the needs of dairy farmers in the 2023 Farm Bill,” said Jim Mulhern, president and CEO of NMPF.  “As outlined by Lolly Lesher during today’s hearing, dairy producers need continued access to an effective safety net, flexible risk management tools that protect all farmers, and an update to the FMMO system that addresses the unequal risk dairy farmers bear compared to processors during unusual market volatility. We look forward to our continued work with the House Agriculture Committee and USDA on these and other farm bill priorities in the coming months.”

NMPF’s Bjerga on the Dairy Economy, FMMO Modernization and Fake Milk

Posted on by Alan Bjerga

 

NMPF Senior Vice President for Communications, Alan Bjerga, discusses dairy issues ranging from pricing to fake milk with KASM radio of Albany, MN, at the National Association of Farm Broadcasters Issues Forum in Washington, DC. Record milk prices are coming with higher costs as well; meanwhile, NMPF is positioned to lead on Federal Milk Marketing Order modernization, a farmer-led process.

NMPF’s Bjerga on How DMC Fights Inflation

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communications Alan Bjerga explains how the Dairy Margin Coverage Program helps protect farmers against rising feed-cost inflation by factoring in higher expenses even as milk prices reach records. Bjerga also talks about the potential market effects of Russia’s invasion of Ukraine and spells his last name for listeners in an interview with WEKZ radio, Janesville, Wisconsin.

NMPF’s Bjerga on DMC

Posted on by Alan Bjerga

NMPF Senior Vice President of Communications Alan Bjerga discusses this year’s enhanced benefits under the Dairy Margin Coverage Program on RFD-TV. A better feed-cost calculation and a production update for some smaller producers- are 2022 highlights for DMC, which along with risk-management initiatives such as Dairy-RP and LGM-Dairy from USDA, offer a wide range of tools for producers, all made more workable and useful via NMPF advocacy.

NMPF’s Galen on DMC Signup

Posted on by Alan Bjerga

 

NMPF Senior Vice President Chris Galen discusses this year’s signup for the Dairy Margin Coverage program with Michael Clements of the National Association of Farm Broadcasters. This year’s DMC features a production update for some producers and an improved feed-cost calculation, further enhancing its value as a risk-protection program for dairy farmers.

NMPF’s Mulhern Speaks at Annual Meeting

Posted on by Alan Bjerga

 

NMPF President and CEO Jim Mulhern speaks at the organization’s annual meeting in Las Vegas, NV on Nov. 16.

Chairman Mooney Highlights Dairy’s Value at Annual Meeting

Posted on by Alan Bjerga

 

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.

NMPF’s Bjerga on Food Box, Vaccinations, and Butter’s Bright Future

Posted on by Alan Bjerga

NMPF Senior Vice President of Communications Alan Bjerga discusses the rise and fall of the Farmers to Families Food Box program and the potential for improved food-assistance programs, along with the need for stepped-up rural COVID vaccinations and how the pandemic could brighten the long-term outlook for butter. Discussion on WEKZ radio, Janesville, Wisconsin.