Much Remains Unknown in Washington’s New Era

Voters spoke clearly last Nov. 5: They want change in Washington. President-elect Donald Trump’s convincing victory, combined with Republican control of both houses of Congress, provides a clear path for important changes in a wide range of policy, both domestic and foreign.

It’s only natural during a time like this to begin playing what-ifs, taking past statements, genuine policy concerns, and anxieties about the road ahead, and mixing them into reactions that may or may not be useful as developments occur. The reality is that much remains unknown about what lies ahead in Washington. For dairy, like everyone else, the prudent path is to focus on what’s known, remember first principles and keep energy from becoming exhausted over speculations that at this moment are only that – speculation.

One example of focusing on what’s real is tax policy. Current tax provisions enacted by Congress in 2017 are due to expire at the end of 2025. Congress will need to do something to keep those provisions from expiring. That’s a fact. Several of those provisions, such as the Section 199A Qualified Business Income Deduction, are important to dairy farmers and the cooperatives they own. We at NMPF are already engaged in conversations on policy that will help our members and are well-positioned to advance this discussion in the year ahead.

The farm bill is another example. With current law already lapsed, an extension of the 2018 Farm Bill will pass this year to tee up a new law in 2025. We are urging lawmakers to make either type of legislation a vehicle to advance portions of our Federal Milk Marketing Order modernization plan that require congressional action, such as a mandatory plant-cost study to help inform future discussions about a proper make allowance. Regardless of what farm bill ultimately takes shape, we know there will be one – and we are prepared to make it work for dairy.

Along with the certainties, other issues that are important to dairy – and dominate headlines – have less-certain paths. In these cases, it’s important to know where we stand and be prepared to inform and educate policymakers as always. But beyond that, the best course is to engage with actual events rather than the latest, breathless, but ultimately questionable, narrative.

We know, for example, that foreign workers are critical to the success of U.S. dairy, and that we will work closely with members of Congress and federal officials to show the importance of those workers to the dairy industry, farm communities, and food security. We also know that we support long-standing Food and Drug Administration policy on restricting the sale of raw milk, due to public health and consumer confidence risks, and that we will work productively with anyone in federal leadership on these concerns. But neither of those issues — to cite only those two — have fully taken shape. Speculation makes good sound bites, but may not encourage good, sound policy in the long run.

And good, sound policy is what we need to be about.

So, while some are excited, and some are anxious, about what may lie ahead in Washington in the year ahead, a deep breath and careful consideration is warranted. U.S. dairy, U.S. agriculture and the nation are on the first steps of a journey. Let’s choose them wisely.


Gregg Doud

President & CEO, NMPF

 

Affordability Remains a Dairy Strength

Regardless of how one feels about the November elections, one thing that voters said loud and clear was that they don’t like inflation. As data shows, that’s yet another reason to like dairy.

A look at Consumer Price Index data going back to the 2008 financial crisis shows that, compared to overall costs, and particularly to other food and beverages, dairy remains relatively affordable, and is becoming even more so over time. Dairy product prices this fall are roughly the same as they were two years ago, even as overall prices and food and beverage prices are both more than 6 percent higher.

This stability isn’t unusual. Dairy prices rose only 12 percent for the entire decade of the 2010s, helping household budget planning and easing price pressures felt more keenly in other areas of the economy.

Dairy isn’t immune to inflation, of course – dairy saw post-pandemic price runups like everything else, as consumers – and voters – remember well. But after that interruption, dairy products are once again anchoring grocery spending, with high quality, high nutrition, great taste and affordability.

So as holiday shopping lists are made and parties are planned, be sure not to skip the dairy aisle. For unparalleled value, in every sense, spend a little extra time in the dairy case. It’s a good place to be this year.

 

 

New FARM Initiative Advances Dairy Stewardship

FARM Environmental Stewardship Version 3 is out – and it’s a step forward for dairy farmers both as stewards and as business managers, according to NMPF Chief Sustainability Officer Nicole Ayache, who oversaw development of the initiative through the National Dairy Farmers Assuring Responsible Management (FARM) Program, in a Dairy Defined Podcast released today.

With new, updating modeling, under FARM ES Version 3, “farmers can actually run scenarios to assess practice or technology changes, see how those would impact their greenhouse gas emissions, and any potential impact on milk productivity as well,” Ayache said. “The scenarios, being able to project what-ifs, is the biggest benefit.”

The FARM Program is a partnership between NMPF and Dairy Management Inc. that helps ensure dairy’s success by demonstrating U.S. dairy farmer commitment to safe, high-quality, high-integrity milk. FARM ES Version 3 took effect Oct. 31.

For more information on FARM ES Version 3, visit the FARM Program website. For more of the Dairy Defined podcast, you can find and subscribe to the podcast on Apple Podcasts, Spotify and Amazon Music under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.


Dairy Has Persevered Through a Successful Year

Note: These remarks are adapted from NMPF President & CEO Gregg Doud’s remarks at NMPF’s annual meeting in Phoenix, Oct. 22, 2024.

In reflecting on where we were a year ago in this industry, it wasn’t very pretty in terms of prices. There wasn’t a lot of optimism. We have experienced several stressful headlines and considerable market risk in the last year, but look at where we are now. The situation has greatly improved — but there is still work to be done.

Let’s start with the long-overdue update of USDA’s Federal Milk Marketing Orders. Then there is the ongoing revamp of the Cooperatives Working Together program (yes, we need to come up with a new name) to make our dairy exports more competitive. We didn’t sign up for H5N1, but it’s here, and we have to deal with it. The Farm Bill, the Dietary Guidelines and ongoing efforts regarding trade issues – they have all been big challenges this year and we cannot let our guard down for a minute in the months ahead. Importantly, we have a tremendous team in Washington. They are rock solid and up for the task.

And that’s critical in areas such as Federal Milk Marketing Order modernization. As I was just coming on board, I went to a couple of the hearings in Carmel, IN. And although I’m an ag economist, it gave me a headache. What a challenging conversation. But what I also saw was the unbelievable expertise and leadership of numerous NMPF members. Our unanimous message made all the difference. It forced the government to listen.

We’ve seen similar impressive accomplishments on Capitol Hill as well. Late last year we had one of the most interesting votes I’ve seen in 32 years in Washington, when the House of Representatives voted 330 to 99 to put whole milk back in schools. This was a situation where some good old-fashioned shoe-leather lobbying, where you sit down with a member of Congress and say, ‘This is the science. This is the better product. We need to put whole milk back in schools.’ The result was that a majority of both Democrats and Republicans in the House, 330 to 99, agreed. Unfortunately, we have yet to be successful in the Senate on this important issue — but the year isn’t over.

I’m not sure when we’re going to pass the Farm Bill. It could be in the lame duck. It could be next year. It could be the year after. Regardless of who is in the White House or Congress next year, the 2025 congressional agenda complicates the Farm Bill legislative process. The next Congress will likely start by navigating issues such as the debt ceiling, budget reconciliation and executive branch nominations. However, the huge issue will be the five-year expiration of our tax code. The “delta” or difference in terms of the Farm Bill and what we’re debating over is about $10 billion when it comes to reference prices. My understanding is, if Congress does nothing in 2025 on taxes, on Jan. 1, 2026, the tax bill for everyone in this country goes up by $5 trillion. This will be the first big debate of the next Congress and, for the farm economy, it dwarfs any other issue. A reasonable expectation is that this discussion will consume the first half of next year, leaving the Farm Bill debate for the last half of the year, squeezed between the process of approving appropriations bills.

We also have to continue to pay close attention to H5N1. Sometimes when we make investments in animal disease preparedness, we’re not sure if the event will ever actually occur. One of those investments, via the checkoff, we made a while back was in terms of foot and mouth disease, and people said, ‘We haven’t had that in nearly a hundred years, why are we investing in that?’

In reality, this little bit of foresight paid huge dividends this year. When H5N1 hit, we pulled these biosecurity plans off the shelf, we adapted them to this virus, and we plugged them in for a webinar for 1,300 people in this industry, in three days — an unbelievable accomplishment. When we look back to the lessons learned on H5N1, this initial investment, and the subsequent on-farm biosecurity implementation efforts that were a result, made a big difference. We must continue to look around the corner to determine what new investments must be made to ensure we’re ready for the next event, whatever that might be.

On the regulatory side, we’ve been investing in the fight against plant-based beverage mislabeling, and we’ve been proactive on the Dietary Guidelines and other nutrition issues. The team effort with incredible dairy nutrition research coming from the checkoff side, along with numerous industry partnerships along the way has been terrific. We’re going to continue to make our case respectfully, but we are not going to give an inch.

We continue to lead and innovate with improvements in our FARM Program and the ongoing work with the U.S. Dairy Export Council on these always thorny trade issues must be a priority to improve the demand environment for U.S. dairy, domestically and internationally.

This industry has a tremendously bright future. There’s never been a year like this year, in terms of headline risk in the agricultural commodity business. My contemporaries talk about this all the time with wars, inflation, viruses, et cetera. Yet, despite all of this, dairy farmers have persevered and had a tremendously successful year. Our future success will also come from the roughly $7 billion in new processing investments now being made in this industry. This is an investment in you, the dairy farmers of this great nation, and for good reason!

It has been an honor to be a part of the NMPF team in Washington this past year, and I look forward to working with you, and fighting for you in Washington, going forward.



Gregg Doud

President & CEO, NMPF

 

Dairy Resilient in the Face of Natural Disasters, H5N1

Dairy farmers are remaining resilient as they manage their way through H5N1 in dairy cattle and respond to natural disasters that have devastated farms, NMPF Chairman Randy Mooney said in remarks at the organization’s annual meeting.

“Farming is hard. I said that. We all know that. But when you get hit with weather events like hurricanes, tornadoes, floods, droughts, the list goes on and on, unexpected costs, that makes it even harder,” Mooney said in his remarks Oct. 22. “You get hit with things like bird flu that a year ago we didn’t even know was a problem,” he continued. “And if you’ve been hit by one of these either weather event or something really unexpected, my heart goes out to you. These things are difficult. It puts strains on farms, put strains on families, put strains on financials.”

“Everything we do, the future is going to take a level of cooperation and coordination from all of us. And we’ve had that, but it’s going to take more than we’ve ever had,” said Mooney, a Dairy Farmers of America member-owner who farms near Rogersville, MO. “I continue to be inspired by all of you and the work that you’re doing. Amid great change and preparation for the future, we are still part of the greatest industry that there is.

Mooney also talks about the 2024 Farm Bill, efforts to modernize milk pricing, labor shortages and dairy’ need to promote exports. For more of the Dairy Defined podcast, you can find and subscribe to the podcast on Apple Podcasts, Spotify and Amazon Music under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.


Three-a-Day Dairy Important to a Healthy Life, National Medical Association Leader Says

With the dietary guidelines for American Scientific Advisory Committee reviewing the science for the upcoming 2025 guidelines, better nutrition for diverse American communities is getting a lot of attention. Dr. Priscilla Mpasi, a Philadelphia physician and board member of the National Medical Association, said dairy’s essential to support in the dietary recommendations the guidelines make, given its importance to nutrition in families with diverse backgrounds.

“The science is very clear about the health benefits, from birth to our senior population,” said Mpasi, a primary care pediatrician, in a Dairy Defined Podcast released today. “The recommendations have been three servings of dairy a day, and we’re hoping it stays at three servings of dairy a day.”

Mpasi also addresses misperceptions regarding lactose intolerance, misinformation on dairy among consumers, and the contrasts between dairy and plant-based beverages.

You can find and subscribe to the podcast on Apple Podcasts, Spotify, Amazon Music, or wherever you get your podcasts, under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.


Dairy Votes Crucial in 2024 Elections

With the 2024 presidential campaign in its final stretch and the list of competitive states tightening, this much remains clear: Whichever road leads to the White House, it probably has a lot of dairy farms along the path.  

Rural and farm voters are getting plenty of attention from both campaigns this time around. But through accident or historical design, the farmers who may have the most say in this year’s presidential election may be the ones milking cows.

That’s because the most hotly contested states significantly overlap with top milk-producing regions, according to a comparison of top dairy states with the states that had the closest electoral margins in 2020. Dairy is a big part of agriculture in the “blue wall” states of Wisconsin, Pennsylvania and Michigan. Minnesota is also part of the mix, and even Texas – which has become a major dairy producer in recent years – was among the 10 closest states electorally.  

And that’s just looking at dairy farm numbers in those states; Georgia and Arizona both have significant dairy processing capacity, which means plenty of dairy-related jobs, extending milk’s influence beyond cliched photo opportunities in front of a barn. 

With so much attention focused on the states where many of them live, what should dairy farmers and their industry allies do? It all comes down to civics and citizenship. People vote their conscience – but from a dairy perspective, here are a few thoughts that might be helpful when considering who to vote for, at all levels of federal races. 

  • International trade is an important part of dairy, and it will only be more so in the future. 
  • Americans deserve healthy diets, and dairy is critical to any good-faith iteration of the next Dietary Guidelines for Americans. 
  • And finally, it sure would be nice to have a farm bill. 

Voting in 2024 is as vital to dairy farmers as dairy is to a nutritious diet. To be better informed on dairy positions on important issues, visit the National Milk Producers Federation’s Policy Priorities pulldown on its home page, nmpf.org. NMPF also has a call-to-action page for people who wish to lend their voices to support dairy farmers and the broader industry on the critical issues of the moment. And subscribe to our publications (including this one) here 

Engagement is crucial, and dairy voices are especially important this year. Everyone has a part to play in making them heard. In the United States, the ballot remains the most effective expression of all. From now through Nov. 5: Choose wisely. 

Dairy Diversity Ready to Grow

It might sound crazy to think that a product that’s already in 94 percent of U.S. households has room to grow, but the numbers indicate it’s true. Here’s what we’re talking about:

This comes from a study done by the International Food Information Council, supported by NMPF and the International Dairy Foods Association, on consumption habits among diverse U.S. populations. What’s striking is that, even though self-reported lactose intolerance among non-White populations runs at roughly 30 percent (according to the same study), clear majorities among Black, Hispanic and Asian/Pacific Islander populations haven’t even tried milk that addresses that intolerance, forgoing an option that provides 13 essential nutrients. And presumably, some of those non-milk drinkers are in that 6 percent who don’t have it in their refrigerators.

(And conversely, some of that 94 percent must include lactose-intolerant consumers. Are they taking lactase pills to aid in digestion? Are other household members the milk drinkers? There’s still much to know.)

The point is this: At a time when the committee drafting recommendations for the next Dietary Guidelines for Americans is looking at nutrition science and contemplating recommendations that are appropriate to the lived experiences of a wide range of Americans, it’s important to meet people where they are. For the overwhelming majority of them, that means a place where they have milk in the fridge. Those who aren’t there are in a place where awareness of the numerous ways to benefit from dairy nutrition, regardless of lactose tolerance, isn’t what it needs to be.

That suggests a need to double down on offering dairy’s benefits in a way that’s tailored to the needs of individual communities. It means listening to communities that value dairy and wish it could be offered more readily, in more accessible forms. It means serving that 94 percent of households with milk — and using the tools available to raise that percentage. It emphatically does not mean de-emphasizing dairy as a critical nutritional option for all Americans — or even worse, suggesting it be replaced by sources that aren’t nutritionally equivalent.

NMPF has a call to action that dairy advocates can use to help get this message across. Public health, and the best public health guidance, is important to all Americans. And dairy is ready to provide high-quality nutrition that’s affordable and accessible to all.

 

Lactose Misinformation is Intolerable

Dairy’s opponents have a new bad-faith argument — that because of lactose intolerance, dairy is inappropriate for diverse communities. It’s a bogus case, but it seems to be seeping into public policy discussion. Before regretful decisions start to be made to the detriment of public health, let’s make it clear: Dairy is a socially inclusive, equitable solution that can benefit all communities.

By the standards of contemporary misinformation, it’s easy to see how lactose-intolerance arguments have gained traction. They include a fact — that some populations have difficulty digesting lactose, a natural sugar found most commonly in milk — and turn it into a myth: that because of this intolerance, dairy should be de-emphasized as a source of nutrition.

But what suits the need of an activist group that may or may not be focused on nutrition doesn’t suit the public interest. A closer look at what dairy provides, and how it can be provided in a way that respects people’s lived dietary experiences and nutritional needs, shows just how misguided, and potentially damaging, an anti-dairy message cloaked in equity rhetoric can be.

A few points to ponder:

  • Dairy is an important source of 13 essential nutrients, including three of the four identified as of public health concern among Americans in the 2020 Dietary Guidelines for Americans. Overall, 89 percent of Americans under-consume dairy, according to that guidelines committee’s report.
  • Dairy beverage substitutes, such as plant-based beverages, are not nutritionally equivalent to dairy and are in fact inferior in significant ways. Even fortified soy drinks, currently recommended as a substitute for dairy under the U.S. dietary guidelines, are chemically dissimilar and may interact with human bodies differently.
  • At the same time, a lactose-free substitute for traditional milk is available that offers true nutritional equivalence. That substitute is called… lactose-free milk, and it solves tolerance issues for most people. It’s hard to imagine a more equitable nutritional solution than giving everyone the same beverage, tailored to their needs — unless, of course, you’re either misinformed or not truly concerned about equity.
  • Beyond milk, lactose is far from predominant in dairy products, giving lactose-intolerant consumers even more options. Butter, for example, has only trace amounts of lactose. Yogurt has much less lactose than milk, and many varieties of cheese, including Cheddar, Colby, Monterey Jack, mozzarella and Swiss, are also low-lactose. Kefir, a thicker, creamier beverage, is lower-lactose than milk, and includes probiotics that help with lactose digestion. These options provide abundant nutrition within healthy dietary patterns, even for many who experience varying levels of lactose intolerance. Here is a helpful guide to lactose in dairy and how to consume dairy with confidence.
  • Awareness of lactose-free options is low in diverse populations, which shows a need for education, not deprivation. According to research done last year by the International Food and Information Council, more than half of members of U.S. racial and ethnic minority groups have never tried lactose-free milk, despite having higher reported percentages of lactose intolerance than White Americans.
  • With increasing sales and newer production practices, the traditional price premium between traditional and lactose-free milk is showing signs of fading, with store brands now offering lactose-free milk.

Nutrition science is challenging, and nutrition policy even more so, as different interest groups try to mold eating habits in ways that sometimes are meant to achieve goals other than effective nutrition. In the end, federal food policy is meant to help people nourish themselves — and for the highest quality nourishment, dairy still provides an unparalleled package, for everyone.

It’s a fact: A healthy, rich-in-dairy diet can be low in lactose or lactose-free. Be wary of arguments that are truth-free instead.

 

 

NMPF’s Castaneda on Colombian Trade, FMMO


NMPF Executive Vice President, Policy Development & Strategy Jaime Castaneda discusses potential dairy trade issues between the U.S. and Colombia, the latest on FMMO updates, and common food names with host Jesse Allen on this Agriculture of America podcast.

Milk Serves Americans Well, Lipps Says

The federal government is seeking comments related to the next iteration of the Dietary Guidelines for Americans as it reviews the science behind healthy eating, with a plan expected next year. Dairy has always had a central role in proper nutrition, and newer science reinforces that. That doesn’t mean the process is easy, two experts said in a Dairy Defined podcast released today.

“One of the biggest distinguishing factors in this year’s advisory committee is a focus on using a health equity lens to ensure that the committee considers factors such as socioeconomic position, food security, race, and, or ethnicity and culture,” said Brandon Lipps, who during his time as USDA deputy undersecretary for Food, Nutrition and Consumer Services, oversaw the writing of the 2020 Dietary Guidelines in partnership with the Department of Health and Human Services. “With products like milk that have so many available nutrients, we can serve Americans so well. And we need to make sure that the committee thinks about the basics when they’re talking about that.”

Lipps, co-founder of Caprock Strategies, was joined by NMPF Director of Regulatory Affairs Miquela Hanselman in the podcast. You can find and subscribe to the Dairy Defined podcast on Apple Podcasts and Spotify under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.