Tag: Federal Milk Marketing Order

FMMO Hearing Heralds Farmer-Led Progress for Dairy, NMPF Says

Posted on by Theresa Sweeney

The first day of USDA’s once-in-a-generation hearing on federal milk pricing represents a critical moment for dairy’s future, one in which the National Milk Producers Federation intends to lead, President and CEO Jim Mulhern said today.

“Thanks to the tireless efforts of dairy farmers and their cooperatives, this industry is poised for progress as Federal Milk Marketing Order modernization is now in sight,” Mulhern said, as dairy experts and government officials gathered in Carmel, IN, for what’s expected to be five to seven weeks of testimony and discussion of proposals to update and improve the FMMO system, which last saw a major revision in 2000. “NMPF’s comprehensive proposal for improvements to the system forms the basis of this hearing, and through our members’ depth of expertise and unmatched team of dairy farmers and cooperative analysts, we are prepared to advance our industry’s need for these updates.”

Following USDA’s initial presentations, the hearing will then launch into discussions of specific issues placed within the scope of the hearing, including; milk composition; surveyed commodity products; Class III and Class IV formula factors; the Base Class I skim milk price; and Class I and Class II price differentials.

After the hearing’s conclusion, entities involved in the hearing then have a period of time to respond to the testimony, followed by a USDA draft decision, then more discussion, and ultimately a vote among dairy farmers on a final proposal, likely in the second half of 2024.

Because of the hearing’s complexity and the multi-step process of formulating and approving a final plan afterward, Mulhern noted that the hearing itself is far from the culmination of the process. Still, as the centerpiece of milk-pricing efforts, the next few weeks will be the most intense for public discussion of how to create a better milk-price system for dairy farmers – a moment NMPF has spent literally years waiting for.

“Though far from the final word, this national hearing stage is a critical phase that starts a foreseeable timeline for a new system to become real,” Mulhern said. “That’s exciting for our industry. It took a long time, and incredible effort, to get to where we are today. With the leadership I know our member cooperatives will provide, it can only lead to a brighter tomorrow.”

NMPF’s Cain on USDA’s FMMO Hearing

Posted on by Alan Bjerga

 

USDA’s Federal Milk Marketing Order modernization hearing begins Wednesday and dairy farmers are eager to be part of the process. National Milk Producers Federation Director of Economic Research and Analysis, Stephen Cain, says there is a lot of ground to cover. “We’ve developed a big package that we think is going to help the U.S. dairy farmer,” Cain told the National Association of Farm Broadcasters.

USDA Sets Aug. 23 FMMO Hearing, NMPF Plan as Basis

Posted on by Theresa Sweeney

The U.S. Department of Agriculture’s (USDA) announced plan for a hearing beginning this month on modernizing the Federal Milk Marketing Order (FMMO) system reflects the comprehensive approach to improvement carefully crafted by the National Milk Producers Federation (NMPF), an emphatically positive development for dairy farmers.

“Dairy farmers nationwide are grateful that USDA is moving forward by including the full scope of NMPF’s proposal to guide the dairy industry forward as it modernizes the Federal Milk Marketing Order system,” said Randy Mooney, a dairy farmer near Rogersville, MO, and chairman of NMPF’s Board of Directors, in a statement released July 21, the day plans for the hearing were announced.

The hearing will begin on Aug. 23 in Carmel, IN, and is expected to last several weeks. NMPF’s cooperative-led effort will be involved in every significant topic, reflecting its detailed proposal and the nationwide scope of its effort.

“This recognition of NMPF’s consensus-based leadership allows us to continue the substantial momentum for change that we’ve achieved,” Mooney said in his statement. “Each piece of our proposal, from returning to the “higher-of” Class I mover as soon as possible, to updating both Class I price differentials and manufacturing cost allowances, has been crucial toward building that consensus, and all components of our plan are critical to a successful update to this important program.

“There is still a long journey ahead toward a modernized federal order system that works better for farmers, but NMPF is ready, with co-op led efforts well under way to ensure that we are well-prepared for the FMMO hearing,” Mooney said. “We’re excited to lead this industry toward solutions that will offer benefits for everyone, and we are gratified that USDA is showing thoughtful leadership through its responsiveness and support for dairy.”

NMPF Board of Directors Approves Comprehensive Farm Bill Recommendations

Posted on by Alan Bjerga

NMPF’s Board of Directors approved June 7 a suite of farm bill policy priorities covering the commodities, conservation, trade, and nutrition titles, working to enhance federal support for producers and expand access to nutritious dairy products for consumers at home and abroad.

With the current farm bill set to expire Sept. 30, Congress is working to enact a new bipartisan five-year farm bill.  NMPF’s recommendations will aid in enacting an on-time farm bill that provides dairy producers the certainty they need as they manage their risks and resources while seeking market opportunities at home and abroad.

“The farm bill is crucial both to dairy farmers seeking to effectively manage their risk and to the consumers who benefit from the nutritious products dairy farmers work every to provide,” said Randy Mooney, chairman of NMPF’s board and a dairy farmer outside Rogersville, MO. “We stand ready to work with lawmakers as they craft this complex, extremely important legislation that touches everyone.”

In the Commodities title:

NMPF seeks to build on its successes in the last farm bill to strengthen the dairy safety net and provide producers with access to a range of risk management tools.  NMPF’s board voted to support continuing the Dairy Margin Coverage safety net while updating the program’s production history calculation.  The board also voted to prioritize improving the Livestock Gross Margin-Dairy and Dairy-Revenue Protection programs should new funding become available.

The board also voted to seek farm bill language to direct USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance reviews. This would complement the near-term make allowance update NMPF is pursuing through its Federal Milk Marketing Order initiative via the USDA hearing process announced last week. Similarly, the board also voted to pursue restoring the previous “higher of” Class I mover in the most expeditious manner possible, either administratively via the FMMO process or legislatively through the farm bill, in which the mover was last changed in 2018.

In the Conservation title:

NMPF is advocating for policies that better position the dairy industry to meet its voluntary, producer-led goal of becoming greenhouse gas neutral or better by 2050. NMPF’s board voted to support maintaining robust funding for voluntary conservation programs, such as the Environmental Quality Incentives Program that supports dairy farmers in their ongoing land and water resource management efforts, with additional emphasis on feed and manure management both of which are major areas of opportunity in sustainability. The board also voted to seek relief from program payment limitations that prevent the family farmers that produce most of the nation’s milk supply from fully using these programs.

In the Trade title:

NMPF will support policies recognizing the growing importance of trade for U.S. dairy, with exports accounting for one-sixth milk of all U.S. milk production, a share expected to grow. NMPF’s board voted to support enhancing funding for trade promotion programs like the Market Access Program and the Foreign Market Development program, which promote American-made dairy and agriculture products that compete with heavily subsidized foreign products and return well over $20 in export revenue for every dollar invested.

The NMPF board also voted to seek language to protect common food names, as embodied in the bipartisan, bicameral SAVE Act that would establish an official list of common food and beverage names and direct USDA and the U.S. Trade Representative to prioritize this issue in international trade negotiations.

In the Nutrition title:

NMPF will support policies that reflect dairy’s role as an excellent source of 13 essential nutrients, some of which are under-consumed, according to the most recent Dietary Guidelines for Americans. The Supplemental Nutrition Assistance Program is vital to linking the food we produce as farmers to families across the country facing difficult circumstances.  NMPF’s board voted to support the enhancement of federal nutrition programs to provide nutritious dairy products to beneficiaries.  NMPF also supports the bipartisan Dairy Nutrition Incentives Program introduced in the Senate to encourage SNAP participants to choose healthful dairy products at the grocery store.

 

NMPF Eager for Next Steps in Milk Marketing Modernization with USDA “Action Plan”

Posted on by Theresa Sweeney

NMPF’s two-year effort toward Federal Milk Marketing Order (FMMO) modernization achieved a significant milestone June 1, when USDA released its proposed “Action Plan” to move toward a national hearing based on the organization’s proposal to update to FMMO system to benefit farmers, the cooperatives they own and the broader industry.

The next phase of creating a federal order system that better reflects today’s market conditions and dairy producer needs begins with an informational hearing June 16 that should serve as a prelude to a full formal hearing in late August, according to the plan. Should the entire process go smoothly, an updated FMMO system could be actively benefiting farmers in late 2024.

“We’re gratified that USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full, because the whole of our plan adds up to more than the sum of its individual parts,” said NMPF President and CEO Jim Mulhern. “We will bring the same level of dedication and preparation to this part of the process that we did in drafting our own plan, which included more than 150 meetings and wide consultation across dairy producers and the entire industry.”

NMPF’s Federal Milk Marketing Order proposal, detailed here, offers comprehensive solutions that recognize the needs of today’s dynamic industry. While the complexity of the process will require detailed discussions, the unity seen among dairy producers supporting NMPF’s proposal, which the organization’s Board of Directors approved unanimously, puts adoption on a positive path moving forward, since producers vote for Federal Orders, Mulhern said.

Randy Mooney, NMPF chairman and a dairy farmer near Rogersville, MO, called the proposal’s strong momentum a testament to the power of dairy farmers, through their cooperatives, to undertake bold initiatives that advance their industry. Farmers will continue to lead as modernization moves forward, Mooney said.

“Dairy producers have proven throughout this process that, with unity and careful attention to each other’s needs, we can achieve impressive things,” he said.  “Dairy’s strength comes from its farms, and producers ready to face challenges and seize opportunities. We’re excited to begin the formal hearing process.”

Dairy Will Seize Generational FMMO Opportunity

Posted on by Alan Bjerga

USDA has moved forward on our request by announcing an “action plan,” and we at NMPF are pleased that the formal process of modernizing Federal Milk Marketing Orders is now officially underway.  The department’s plan announced last Thursday moves us toward the national federal order hearing we’re seeking, giving dairy a generational chance to update this important program to better reflect today’s market conditions and dairy producer needs.

We’re gratified that USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full, because the whole of our plan adds up to more than the sum of its individual parts. That’s a testament to the careful work put into this effort over two years and more than 150 meetings. But it also means that the next steps will require the same level of dedication and preparation, if not even more.

Once USDA conducts some preliminary steps (providing opportunity for additional proposals; holding a pre-hearing workshop) and sends out its hearing notice – likely late July – the stage is set for the hearing, which could begin as early as August and take 6-8 weeks. Once all the testimony is considered, USDA would be on track to put forward a final plan for a producer vote in 2024. Assuming that’s successful, implementation would begin late next year.

That’s assuming everything goes smoothly, which, in this broad and varied industry, is always a big assumption. But as dairy producers have proven throughout this process, with unity and careful attention to each other’s needs, impressive things can be done.

To work through this next stage as smoothly as possible, we plan to stick with the formula for success that’s served us well since the beginning. The principles we’ve followed include:

  • An approach grounded in thorough research and deliberation. Our meticulous, consensus-driven efforts allowed us to craft a proposal that comprehensively addresses today’s milk-pricing needs. As we prepare for a USDA hearing, that same commitment to substantive research over mere posturing will be critical. Fortunately, we’ve been working with many of the industry’s top economists and analysts to guide our approach. Their work will be key in the hearings to addressing complex issues such as Class I differential pricing, the make allowance or the return to the “higher-of.”
  • A devotion to consensus. We’ve focused on measures that unite the nation’s producers, and we will continue to advocate for solutions tailored to broad benefit rather than narrow, specialized self-interests. When disagreements have arisen, we’ve invariably worked toward, and achieved, consensus among producers. During our many meetings, if a proposal couldn’t attract a strong majority of support, we dropped it and moved on, always making sure that our members were lined up behind anything that moved forward. While this meant no one likely got exactly what they wanted, in the long run our proposal is stronger because it reflects the collective consensus of dairy producers serving markets nationwide.
  • An understanding that failure – or a focus on one single aspect of the program— is not an option. The need to comprehensively update a system built for the dairy industry of 23 years ago has always been obvious. Now that we’re moving toward a hearing, giving anything less than maximum attention and support is not an option either; nor is arriving at a final decision that producers won’t approve, a case we will make clearly and cogently in the hearing process. At this point the need for program modernization isn’t only established: a comprehensive approach to meeting it has been unanimously adopted by representatives of two-thirds of the nation’s milk supply and the added support of numerous other state, regional and national organizations with dairy producer members. This effort can’t, and won’t, be thrown into reverse. It needs to be brought to a successful conclusion, with the same spirit of consensus that brought us here.

With these principles in mind, we are about to embark on the next phase. This has been a heavy lift, and it’s far from complete. But we’re excited for the formal hearing process to begin. Deep thanks and appreciation to everyone who has contributed to and supported this journey so far. Additional opportunities to advance this effort and successfully see it through will be plentiful in the months ahead.

 

Jim Mulhern

President & CEO, NMPF

 

NMPF Eager for Next Steps in Milk Marketing Modernization with USDA “Action Plan”

Posted on by Alan Bjerga

ARLINGTON, VA – The National Milk Producers Federation applauds USDA for today proposing its “Action Plan” to move toward a national hearing based on NMPF’s proposal to modernize the Federal Milk Marketing Orders. The largest representative of U.S. dairy farmers and farmer-owned dairy processors is eager to begin the next phase of creating a federal order system that better reflects today’s market conditions and dairy producer needs.

“We’re gratified that USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full, because the whole of our plan adds up to more than the sum of its individual parts,” said NMPF President and CEO Jim Mulhern. “We will bring the same level of dedication and preparation to this part of the process that we did in drafting our own plan, which included more than 150 meetings and wide consultation across dairy producers and the entire industry.”

NMPF’s Federal Milk Marketing Order proposal, detailed here, offers comprehensive solutions that recognize the needs of today’s dynamic industry. While the complexity of the process will require detailed discussions, the unity seen among dairy producers supporting NMPF’s proposal, which the organization’s Board of Directors approved unanimously, puts adoption on a positive path moving forward, since producers vote for Federal Orders Mulhern said.

Randy Mooney, NMPF chairman and dairy farmer near Rogersville, MO, called the proposal’s strong momentum a testament to the power of dairy farmers, through their cooperatives, to undertake bold initiatives that advance their industry. Farmers will continue to lead as modernization moves forward, Mooney said.

“Dairy producers have proven throughout this process that, with unity and careful attention to each other’s needs, we can achieve impressive things,” he said.  “Dairy’s strength comes from its farms, and producers ready to face challenges and seize opportunities. We’re excited to begin the formal hearing process.”

NMPF’s Bjerga on Growing Momentum for FMMO Modernization

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communications Alan Bjerga discusses how the support of the American Farm Bureau Federation is a powerful statement of farmer consensus for NMPF’s Federal Milk Marketing Order modernization plan currently before USDA. Bjerga also talks about the industry’s active discussions on fighting misinformation about dairy, in an interview with RFD-TV’s Christina Loren.

A Critical Moment Arrives on the FMMO Scene

Posted on by Alan Bjerga

By Jim Mulhern, President and CEO, NMPF

Jim Mulhern, NMPF President and CEO

The march to milk-pricing modernization reached another milestone this month, as the National Milk Producers Federation (NMPF) submitted to USDA our comprehensive proposal for Federal Milk Marketing Order (FMMO) reform.

After more than 150 meetings over nearly two years, a strong consensus has emerged among producers and our allies for changes that hold benefits for farmers of all sizes, in all regions, and for the broader industry that, together with producers, serves wholesome, nutritious products to consumers 24 hours a day, seven days a week.

A lot of work has gone into this effort. We have examined the program in great detail and came up with a plan that modernizes and updates Federal Milk Marketing Orders so they can work better for today’s dairy industry.

Some key highlights:

  • Returning to the “higher of” Class I mover.
  • Discontinuing the use of barrel cheese in the protein component price formula.
  • Updating milk component factors for protein, other solids, and nonfat solids in the Class III and Class IV skim milk price formulas.
  • Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk to fluid processing plants.
  • Updating dairy product manufacturing allowances contained in the USDA milk price formulas.
  • Developing a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years.
  • Extending the current 30-day reporting limit to 45 days on forward-priced sales on nonfat dry milk and dry whey to capture more export sales in the USDA product price reporting.

The first five of these are part of our proposal before USDA. We’re seeking the make-allowance review via the farm bill and the forward-pricing plan through separate federal rulemaking.

The components work together

It’s important to note how much the elements of our proposal rely on one another to succeed. Take the make-allowance, for example. It hasn’t had a meaningful update in 15 years. It’s a key priority of our hearing request, and it’s of intense interest to some. But it still needs to be addressed in a way that benefits all. Handling that issue in isolation would have the effect of reducing milk prices to farmers, a non-starter in a program that’s ultimately supported by a vote from producers.

That’s why we have the make allowance issue in our proposal, but one that’s included along with other necessary updates to milk pricing help economically offset our proposed make allowance adjustment, by bringing pricing formulas up-to-date and minimizing disruption to markets.

Modernizing the Federal Milk Marketing Order system has been due for some time; the pandemic experience, which exposed fault lines in the system, underscored just how necessary this effort has been and created the impetus for change. We’ve been deliberate in our approach because we wanted to make sure that we addressed the concern that Agriculture Secretary Vilsack stated well over a year ago when he said it was important to have consensus within the producer community.

We have achieved that consensus, and we believe we have sent USDA a strong signal — both in the thoroughness of our proposal and our depth of support among producers — that our comprehensive proposal is the proper basis for FMMO hearings and a path toward modernization.

And we’ll need to maintain that consensus throughout the process. As we move forward toward a hearing, we’ll continue listening to any concerns and providing any information that’s helpful for progress. Please don’t hesitate to write to the special address we’re using so that staff can respond to your questions. Thank you for your help and support.

This column originally appeared in Hoard’s Dairyman Intel on May 11, 2023.

New FMMO Will Work Better for Farmers, Mulhern Says

Posted on by Alan Bjerga

 

NMPF President and CEO Jim Mulhern says the industry need a modernized Federal Milk Marketing Order that works better for dairy farmers, in an interview with the National Association of Farm Broadcasters. “We’re really excited that is a plan that will point a way toward a much brighter future for us dairy industry,” Mulhern said.

NMPF’s Mulhern Explains FMMO Modernization

Posted on by Alan Bjerga

NMPF President and CEO Jim Mulhern explains the importance of modernization to the Federal Milk Marketing Order system and the benefits it hold from farmers to consumers in an interview with AgriTalk, a daily national conversation about the latest issues impacting agriculture and rural America. NMPF’s proposal to update the system, which governs milk pricing, is currently before USDA.