Tag: NEXT Program

FMMO Modernization Takes Effect, With NEXT Next

Posted on by Rachel Ravencraft
  • Final Rule updating Federal Milk Marketing Order pricing formulas implemented June 1
  • NMPF Exports & Trade (NEXT) gained approval from NMPF’s Board of Directors and started accepting bids

NMPF’s Economics team saw the culmination of a multi-year effort to update the Federal Milk Marketing Order pricing formulas on June 1, when the new FMMO rule took effect.

The “higher-of” Class I price mover for most non-ESL milk has been restored; dairy product make allowances and Class I differentials nationwide are updated, and USDA is no longer using barrel cheese to determine the Class III price. USDA will implement a final part of the rule increasing the component composition factors for skim milk in all FMMO price classes Dec. 1 to avoid disrupting existing risk management positions.

NMPF successfully argued for these necessary updates in five specific proposals presented at a record-long FMMO hearing from late summer 2023 to early winter 2024. The arguments all flowed from the fundamental principle that FMMO product price formulas must evolve with the changing structure of the dairy industry to properly fulfill their role of accurately translating dairy product prices into milk values embodied in the orders’ classified prices. The rule comes after more than four years of effort that included more than 200 meetings to formulate and defend NMPF’s proposal, led by NMPF leaders and experts.

Also spearheaded by economic analysis and consultations, NMPF’s Board of Directors approved the NMPF Exports & Trade (NEXT) program to succeed the Cooperatives Working Together export assistance program, at its June board meeting, with bids beginning in July.

NEXT expands its service to dairy producers and to testing innovative new ways to expand U.S. dairy’s market share. NEXT provides an effective means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages. New initiatives in the new NEXT program include:

  • Expanding the program’s product mix
  • Creating market development initiatives that provide targeted, additional support beyond primary assistance to level the playing field and drive U.S. export volume growth in key markets around the world where the U.S. is at a tariff
    disadvantage and/or where the U.S. has the room and ability to gain market share
  • Enhancing program operations to assist in NEXT’s mission by extending delivery periods, removing volume limits and providing greater insight into program operations; and
  • Creating a strategic advisory council to guide program strategy.

NEXT charges cooperatives paying into the new program two cents/cwt of member milk, a reduction from the four cents/cwt previous assessment in the CWT program. Within the first month of the program, NEXT-assisted export sales boomed, reaching nearly 38 million pounds of product – a tremendous start for the new program.

NMPF’s August Sees Flurry of Comments, Initiatives

Posted on by Rachel Ravencraft

NMPF spent the traditional August lull in Washington policymaking actively pushing its members’ priorities, submitting regulatory comments to federal agencies.

NMPF stood with other major agricultural organizations in joint comments submitted Aug. 13 against a draft risk assessment in which EPA models human exposure to the “forever chemicals” PFOA or PFOS from the application of sewage sludge, or biosolids, to farmland. The organizations asserted that EPA’s models operate on extreme assumptions that don’t account for the reality of agriculture, despite the agency’s best intentions.

NMPF also continued its decades-long fight against improper and ineffective air emissions modeling through comments Aug. 18 to the National Air Emissions Monitoring Study Group in response to draft revised emission models for animal feeding operations released by EPA late last fall.

After significant analysis, NMPF concluded that the current draft EPA dairy Air Emissions Estimating Methodologies (EEMs) are not appropriate for predicting dairy farm emissions. NMPF described the specific modeling flaws in its comments to support its argument that EPA should permanently cease its efforts in this area.

August also was highlighted by more activity from NEXT (NMPF Export and Trade), the revamped, cooperative-led export assistance program. NEXT member cooperatives secured 37 contracts in August, adding 8.6 million pounds of product in NEXT-assisted sales in 2025. These products will go to customers in Asia, Oceania, Middle East-North Africa, Central America, the Caribbean and South America and will be shipped through December.

NMPF also opened its fundraising raffle for its annual scholarship awards. The raffle runs through this year’s Joint Annual Meeting and concludes on Nov. 12 when winners will be announced.

Prizes this year include a $100 Airbnb gift card, a Cabot Creamery Fan Favorite gift box and more. The raffle can be accessed here. Back by popular demand, the scholarship committee will also be hosting a combination silent and live auction during the Cheese Reception on Nov. 11.

The NMPF National Dairy Leadership Scholarship Program supports master’s and Ph.D. students conducting vital research for the future of the industry. The program is largely funded through raffles and auctions. Donations are also welcome. These events are critical to ensuring the opportunity to support the next generation of dairy enthusiasts.

NMPF’s Joint Annual Meeting on Nov. 10-12, held with the National Dairy Promotion and Research Board (NDB) and the United Dairy Industry Association (UDIA), is open for registration. More information and registration is available here.

Meanwhile, the FARM team is beginning to develop its Version 2028 of its Animal Care program, conducting a stakeholder survey through Sept. 5 collecting input from dairy farmers, industry stakeholders and partners about topics, issues and potential changes. The survey results will inform a final report available on the FARM website early next year.

Finally, according to August USDA data, the July margin under the Dairy Margin Coverage program dropped to $10.94/cwt, as the DMC feed cost formula decreased by $0.34/cwt, and the all-milk price fell by $0.50/cwt to $20.80/cwt. The July DMC feed cost dropped on lower corn and soybean meal prices, while the premium alfalfa price changed little from June.

July NEXT-Assisted Export Sales Reach Nearly 38 Million Pounds

Posted on by Theresa Sweeney

NEXT member cooperatives secured 223 contracts in the program’s first month, totaling 37.7 million pounds of product in NEXT-assisted sales in 2025. These products will go to customers in Asia, Oceania, Middle East-North Africa, Central America, the Caribbean and South America and will be shipped from July through December 2025.

NEXT (NMPF Export and Trade) gained final approval from NMPF’s Board of Directors at its June meeting. It succeeds the previous Cooperatives Working Together (CWT) program, expanding its service to dairy producers and testing innovative new ways to build U.S. dairy’s global market share. NEXT provides an effective means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

The referenced amounts of dairy products reflect current contracts for delivery, not completed export volumes. NEXT will pay export assistance to bidders only when export and delivery of product is verified by submission of required documentation.

NMPF Farmers Advocate for Dairy, Approve Trade Initiative at Board Meeting

Posted on by Theresa Sweeney

NMPF members approved a new initiative to boost dairy exports and welcomed a new cooperative as well as new farmer-leaders into the fold at the National Milk Producers Federation’s Board of Directors meeting June 10-11.

NMPF’s board meeting brought together more than 100 farmers and dairy-cooperative leaders at the nation’s largest dairy farmer trade organization, which serves as the policy voice for milk producers and the cooperatives they own in Washington.

“If you imagine that on top of that the millions of people who buy something we touch every day with the products, the nutritious products that we produce, not just at dinner, not just at breakfast, but all day long, because of what you can turn dairy into, it’s a pretty amazing story, really,” said NMPF Board Chairman Randy Mooney, a farmer from Rogersville, MO, in remarks at the meeting. “We put some of the most nourishing products there are into consumers every day, globally, and that’s something that I think we can all be proud of.”

The board also voted to implement a new member-funded export assistance program called NEXT , starting today.  NEXT, which stands for NMPF EXport and Trade, is the successor to the Cooperatives Working Together program.

A majority of the milk produced by NMPF members supports the NEXT program, with a 2 cent/cwt contribution through 2028. The NEXT program focuses on supporting U.S. dairy exports in key markets around the world to help drive global demand for U.S. dairy products and support U.S. dairy prices.

Two new directors and one new cooperative member also were approved. Joining as new board members are:

  • Corey Gillins, Dairy Farmers of America
  • Tim Kuenzi, Darigold
  • Brenda Dehart, Foremost Farms

NMPF also approved a new co-op member, Lanco-Pennland Cooperative, based in Hagerstown, MD. Lanco-Pennland produces roughly 400 million pounds of milk annually and is a leading East Coast milk marketer.

The meeting also featured remarks from Reps. Dusty Johnson, R-SD, David Valadao, R-CA, and Tony Wied, R-WI.

The meeting was held in conjunction with the Young Cooperators (YC) Dairy Policy and Legislative Forum, which brought together young dairy leaders from 15 states for two days of education and advocacy on Capitol Hill. YCs discussed key dairy priorities directly with members of Congress and staffs to advocate for the Whole Milk for Healthy Kids Act, agricultural labor reform and strong dairy trade policies.

Also in conjunction with the meeting, The National Dairy Farmers Assuring Responsible Management (FARM) Program opened nominations for its annual FARM Excellence Awards, which recognizes farmers, cooperatives and processors that provide consumers with safe, wholesome milk with integrity. Nominations may be submitted via an online form until Aug. 4.

NEXT Coming Soon

Posted on by Theresa Sweeney

NMPF’s board charted a path toward a successor organization to the Cooperatives Working Together export assistance program at its March meeting, voting to rename the program NEXT (NMPF Exports & Trade) while authorizing a new business plan for final approval in June.

The new name accompanies new initiatives planned for the export program, including:

  • Expanding the program’s product mix
  • Creating Market development initiatives focused on making inroads for U.S. cheese and butter in Latin America and mitigating tariff disadvantages for U.S. specialty proteins and milk powders in key markets in Asia and Middle East-North Africa
  • Enhancing program operations to assist in NEXT’s mission by extending delivery periods, removing volume limits and providing greater insight into program operations; and
  • Creating a strategic advisory council to guide program strategy.

Cooperatives paying into the new program would be charged 2 cents/cwt of member milk, a reduction from the 4 cents/cwt previous assessment. Any member with questions regarding NEXT should contact economist Will Loux at wloux@usdec.org.