CEO’s Corner: Dairy Builds Progress on Sustainability as Legislation Inches Forward

Members of Congress continue working on budget reconciliation and infrastructure legislation that, for all of its political challenges, could provide important support for U.S. dairy’s efforts to achieve net zero greenhouse gas emissions by 2050. We are hoping for a positive conclusion to this process: Strong candidates for inclusion in a final package are important policy gains for dairy that set up farms for new revenue streams and help achieve crucial industry goals. And once those measures are achieved, additional opportunities for dairy success lie ahead.

The biggest emerging opportunity in the current bills before Congress comes under the heading of “climate-smart agriculture” thanks to the leadership of Senate Agriculture Committee Chairwoman Debbie Stabenow.  The idea of farmer stewardship as a climate solution is a no-brainer within farming, but it’s picking up steam more broadly as a way to help farms prosper in a world in which climate change will be a bigger part of federal policy, regardless of which party is in charge. “Climate-smart” often can also mean “conservation smart” as well: That’s creating opportunities to re-examine federal conservation programs in ways that better fit dairy by emphasizing industry practices that can generate and yield meaningful environmental benefits. These can range from sequestering carbon in soil and reducing greenhouse gas emissions to creating new revenue streams from manure management.

Dairy has long supported robust conservation funding, but those programs haven’t always emphasized some of the stewardship practices in which dairy farmers excel most. Ample and appropriate climate-smart ag funding, as an element of the reconciliation package, will move conservation programs in the right direction, creating opportunities to recognize dairy farmers for the great work they’re doing and offering incentives for additional efforts including reducing enteric emissions through improved feed and diet management. That in turn supports the industry’s Net Zero goals and makes U.S. milk even more marketable for sustainability-conscious international customers.

Related to climate-smart progress is the Agriculture Environmental Stewardship Act, which would create a 30 percent investment tax credit to cover the upfront costs of nutrient separation technologies as well as methane digesters for a variety of different uses. The idea has found bipartisan support among tax-writing committees in both the House and Senate, and at least parts of the proposal are in vehicles that could be included in the budget reconciliation package. Doing so would create a great opportunity for producers to turn their environmental leadership into a balance-sheet gain.

These initiatives — and other benefits that range from expanded rural broadband to improved roads and bridges — make us enthusiastic about what the bills being negotiated could hold for dairy, especially with the sidelining of tax proposals that could have harmed the future of family dairy farming in this country. And beyond them, other industry goals are on track for success as well. Prominent among them is faster approval of the feed additives dairy needs to meet emissions goals and compete worldwide.

The Food and Drug Administration has long treated animal feed additives seeking market approval as drugs rather than as foods, a more cumbersome regulatory process that’s impeding a potential game-changer in reducing enteric emissions and meeting Net Zero goals. We’ve argued before FDA that the additives, which are absorbed via the digestive tract, should be treated as food. This year, we’re making progress in prevailing. Both the House and the Senate appropriations bills for the 2022 fiscal year include language looking at how we can get FDA to classify these additives appropriately – and importantly, include the funding needed to see that job through.

These gains, along with progress toward voluntary carbon markets and other initiatives, represent years of work from NMPF and its allies. It’s gratifying to see them nearing reality. It’s also important to note that even if some, or even all, of these goals aren’t reached in the next few weeks – if their legislative vehicles get snagged by the back-and-forth of Washington or some components aren’t included in a final agreement – the support they’ve attracted this year positions dairy well for the next farm bill, the writing of which will begin in earnest very soon. Patience will be rewarded.

These initiatives may not get the same attention as headline items like free community college or childcare, but for dairy, they represent real improvements in farmer fortunes. They don’t happen overnight – but they remind us why dairy’s future is exciting, and why even though the narrative may often be that “nothing’s getting done,” the fact is, sometimes progress happens. And we’re pleased to be helping it along.

NMPF, NCFC Lead Coalition Backing Climate-Smart Ag Investments

The National Milk Producers Federation (NMPF) and the National Council of Farmer Cooperatives (NCFC) on Aug. 5 led a coalition of 12 agricultural and conservation organizations on a letter advocating for significant new funding for climate-smart agricultural practices that can help farmers to build on their environmental stewardship leadership.

Congressional efforts toward infrastructure legislation provide opportunities for substantial new investments in conservation support, with more emphasis on climate-smart agricultural practices. USDA conservation financial incentives provide farmers with voluntary technical assistance to carry out numerous stewardship practices. But more can be done to enhance practices that can yield meaningful environmental benefits, such as climate-smart manure and feed management on dairy farms.

“Dairy farmers are proactive stewards of their land and water resources, but they are always seeking to innovate further. Dairy farmers in 2020 committed to become carbon-neutral or better by 2050 and maximize water quality around the country. Bolstering conservation investment and focusing on climate-smart practices better positions dairy farmers to fulfill the dairy sector’s 2050 environmental stewardship goals as envisioned in the Net Zero Initiative,” said Jim Mulhern, president and CEO of NMPF.

NMPF, NCFC, and their colleagues call in the letter for increased spending on conservation incentives, including strong technical and financial assistance, with a greater focus on climate-smart practices. The organizations also support new rural broadband resources in pending infrastructure legislation. The letter also reiterates the signers’ major concerns regarding several proposed changes to tax policy that would undermine the transfer of family farms from one generation to the next.

Congress is expected this fall to pass a major budget package using a process known as reconciliation, which eliminates the 60-vote threshold normally needed to adopt legislation in the Senate. The budget resolution Congress is advancing this month to tee up that bill includes instructions to the House and Senate Agriculture Committees to enable them to boost funding for conservation and climate smart ag practices. The Senate passed the budget resolution on Aug. 11, and the House subsequently adopted it Aug. 24.

Organizations that joined NMPF and NCFC on the letter include the Agricultural Retailers Association, American Seed Trade Association, CropLife America, National Association of Conservation Districts, National Association of State Departments of Agriculture, National Association of Wheat Growers, National Farmers Union, National Potato Council, Produce Marketing Association, and U.S. Apple Association.

Net Zero Initiative Policy Path Moves Forward

NMPF worked throughout May to leverage regulatory and legislative opportunities to improve dairy farmer access to financial resources as well as voluntary ecosystem services trading markets that enhance affordability and revenue opportunities, continues its advocacy on behalf of U.S. dairy farmers as global leaders in addressing climate change,.

These most recent efforts included comments to USDA to improve NRCS conservation practice standards to meet real-world dairy farm needs; meeting with FDA to streamline regulatory approval of feed additives which may reduce enteric methane; and working through coalitions such as the Food and Agriculture Climate Alliance to advocate for legislation to make access to voluntary ecosystem service markets easier.

NMPF on April 29 submitted a series of comments to USDA on the Executive Order on Tackling the Climate Crisis at Home and Abroad. President Biden issued the Executive Order on Jan. 27 “to pursue action at home and abroad in order to avoid the most catastrophic impacts of that crisis and to seize the opportunity that tackling climate change presents.  Domestic action must go hand in hand with United States international leadership, aimed at significantly enhancing global action.” The comments spoke to the ability of U.S. dairy and U.S. agriculture in general to be environmental solutions to climate change. The three sets of comments are:

CEO’s Corner: Trade + Sustainability = Dairy’s Next Frontier

Among all the great stories dairy can tell in 2021 as it celebrates National Dairy Month in June, from its reaffirmation by grocery shoppers to farmer leadership in COVID-19 vaccine drives, the sector’s gains in global trade is a true standout. U.S. dairy exports volumes reached a record in March, with the percentage of domestic milk production sent overseas that month the second highest ever. Revenues are also increasing – the $688 million worth of dairy products shipped abroad in March was the highest since 2014.

Trade is always top of mind at the National Milk Producers Federation, and of course at the U.S. Dairy Export Council, with whom we work closely. As the U.S. dairy-farmer organization that encompasses the full range of issues that shape a farmer’s success, we at NMPF are also focused on an important part of the trade story that’s less obvious, but increasingly important: how boosting dairy sales overseas depends on progress on sustainability investments at home. Just as it is in the United States, sustainability is increasingly becoming crucial for global consumers. The good news is U.S. dairy is a leader globally on sustainability just as it is on quality and affordability – crucial considerations for feeding the world, which ultimately benefits both farmers at home and consumers abroad.

First, the part we’ve always known: U.S. dairy farmers deliver affordable nutrition that meets global food-security needs. Nutrient-dense U.S. dairy products have nourished billions of people worldwide. They provide nutrients critical to preventing and addressing malnutrition, including high-quality protein, calcium, phosphorus, potassium, iodine, and vitamins B2 and B12. And because U.S. dairy combines high quality and competitive cost, its export creates broad-based nutritional benefits worldwide.

But another, increasingly important element of U.S. dairy’s appeal is its world-leading sustainability. Even as they produce high-quality, affordable products, U.S. dairy cooperatives and the entire industry are cultivating and supporting sustainable food systems that are good for people, animals, and the planet. This serves global consumers and reflects their needs. It dovetails with the environmental, economic and social aspects of sustainability as defined by the UN Food and Agriculture Organization, and it also aligns with the values of stewardship U.S. dairy farmers have always embodied. Sustainability matters to dairy, as U.S. consumers have discovered — and as the world increasingly knows.

U.S. dairy’s commitments are tangible and measurable. The industry’s 2050 Environmental Stewardship Goals and its Net Zero Initiative are putting the U.S. dairy sector on a path toward becoming carbon neutral or better by 2050 while optimizing water use and improving water quality. The same emphasis on sustainable production is at the core of the National Dairy FARM Program, which helps U.S. dairy farmers remain leaders in animal care, environmental stewardship, workforce development, antibiotic stewardship, and biosecurity.

Such sector-wide emphasis on best practices and sustainability leadership has already brought results. Innovative farming practices helped reduce dairy’s carbon footprint per gallon of milk by 19 percent from 2007 to 2017, while using 30 percent less water and 21 percent less land. UN FAO research has found that North America was the only region in the world to reduce farm-level dairy greenhouse gas (GHG) emissions between 2005 and 2015, even as milk production increased.

Choosing American milk products directly reduces global dairy emissions. That’s a great message for the world about U.S. milk. And make no mistake, the world needs what we have to offer. Global dairy consumption is expected to rise 16 percent in the next decade, and with competitors such as New Zealand and the European Union facing constraints on production due to their own policies, the opportunities for U.S. dairy brought through sustainable production are real.

So let’s raise a glass to sustainability this National Dairy Month. U.S. dairy farmers and its world of consumers are working to improve their health and the health of their planet every day. This is a success that can be sustained. And in the U.S. dairy community, it is what we pledge to do.

Dairy Defines Sustainability, Land O’Lakes’ Kappelman Says

Sustainability is shaping the U.S. dairy industry’s future, making it better equipped to make sure the world has the nutrition it needs, says Pete Kappelman, a longtime dairy farmer and Land O’Lakes’ Senior Vice President of Member and Government Relations.

“U.S. dairy farmers are deeply involved and concerned about the many communities that they touch. And that starts with producing a safe, nutritious, affordable food, but it also includes things like being good stewards of the land, for the good of the planet,” as well as being able to pass a farm down to future generations, said Kappelman in a Dairy Defined podcast released today. “In order to feed a growing population, we’ve got to work together across continents, across cultures and markets to make abundant nutritious food available so everyone can realize their full potential.”

Kappelman also discusses industrywide sustainability commitments and Land O’Lakes Venture 37, which delivers market insights and technical expertise to agricultural development projects worldwide. The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.