Senate Republican Farm Bill Framework Includes Dairy Gains

Dairy policy priorities continue to be reflected in Congressional farm bill plans, with Senate Agriculture Committee Ranking Member Sen. John Boozman, R-AR, releasing Senate Republicans’ farm bill framework on June 11.

Like the framework previously issued by Senate Democrats and the bill passed by the House Agriculture Committee in May, Boozman’s framework includes several important dairy policy priorities. It also marks another key step toward enacting a farm bill.

Boozman’s plan provides “a strong farm bill framework that marks another important step toward enacting a bipartisan farm bill into law this year,” said NMPF President & CEO Gregg Doud in a statement.

The Senate Republican framework includes positive dairy provisions, such as:

  • Extending the Dairy Margin Coverage (DMC) Program through 2029; updating production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extending the ability for producers to receive a 25% premium discount for locking in five years of coverage
  • Requiring USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance conversations, a key component of NMPF’s Federal Milk Marketing Order modernization proposal
  • Supporting voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program
  • Boosting funding for critical dairy trade promotion programs and protecting the use of common food names worldwide
  • Supporting the bipartisan, House-passed Whole Milk for Healthy Kids Act to reverse the underconsumption of nutritious milk in schools;
  • Increasing funding for animal health initiatives and programs; and
  • Advancing the bipartisan Innovative FEED Act to expedite and modernize approval of animal feed ingredients that have a proven track record of reducing enteric methane emissions.

The current farm bill officially expires on Sept. 30, but most core programs run until Dec. 31, giving the congressional agriculture committees until the end of the calendar year to complete work on a new farm bill before a new Congress is sworn in.

FMMO Recommendations Build on NMPF Success

USDA’s proposed plan for Federal Milk Marketing Order (FMMO) modernization release July 1 reflected years of painstaking NMPF efforts in crafting a comprehensive plan and building consensus across dairy, leading to recommendations that will set dairy up for success.

The proposal, which is open for comment through August, comes after USDA examined hearing briefs submitted by participants in 2023’s record-long federal order hearing. NMPF again led with its comprehensive approach to improved milk pricing, offering the department detailed proposals that worked to ensure benefits for farms in all regions, of all sizes.

“NMPF is heartened that much of what we proposed after more than two years of policy development, and another year of testimony and explanation, is reflected in USDA’s recommended FMMO modernization plan,” NMPF President and CEO Gregg Doud said in a statement the day the plan was released.

“Crafting an effective milk-pricing system for farmers is complex and requires a careful balance. USDA’s plan acknowledges that complexity and, while not matching our proposal in every detail, looks largely in keeping with the comprehensive approach painstakingly determined by the work of dairy farmers and their cooperatives over the past three years,” Doud said. “We look forward to examining this proposal topic-by-topic, gathering input regarding the various needs of our members nationwide, and adding their insights as this process moves toward a vote of producers.”

Doud elaborated on USDA’s plan, and its relationship to proposals by NMPF and others, in NMPF’s monthly CEO’s Corner column.

The proposal is now in a 60-day comment period. NMPF’s member-led task force on FMMO is meeting July 11 to discuss the plan and offer member input, while the following day NMPF’s Co-op Communicators Committee is discussing publicity and farmer-communications efforts to educate the industry on the proposal. After USDA reviews public comments, a final plan will be put to a vote of producers, likely in the early months of 2025.

House Farm Bill a Win for Dairy

The long-awaited Farm Bill debate has finally begun. As someone who has played a role in drafting one Farm Bill as a Senate Agriculture Committee staffer and stood on the sidelines here in Washington for five other Farm Bill debates, I’ve learned that the roads to success in passing farm bills through both houses of Congress can be long and challenging. Still, the path is always worthwhile: It’s critical to have a strong and stable farm policy that supports our industry and helps us overcome the challenges we face.

That’s why I am grateful to the House Agriculture Committee, under the leadership of Rep. Glenn “GT” Thompson, R-PA, for passing a 2024 Farm Bill that includes critical dairy priorities that will help us grow and thrive. As the first major step in the legislative process of approving a new law, it’s one that’s positive for dairy and should set a productive tone for developments moving forward.

The plan approved by the House Agriculture Committee on May 23 reflects much of the input we have received from our members. NMPF has worked closely with lawmakers from both parties to ensure the bill addresses the needs and concerns of dairy producers of all sizes, in all regions.

Some of the key provisions of the House Farm Bill that would benefit dairy are:

  • Extending the Dairy Margin Coverage (DMC) program through 2029, with updated production histories and a 25% premium discount for locking five years of coverage. The DMC program, created at our urging in the 2018 Farm Bill, has been a lifeline for many dairy farmers who have faced low milk prices and high feed costs. By extending the program with this update, the House plan provides more certainty for dairy farmers who want to manage their risk and protect their income.

  • Restoring the “higher of” Class I mover to reinstate orderly milk marketing, as well as requiring plant cost studies every two years to provide better data to inform future make allowance conversations. These are two key components of NMPF’s Federal Milk Marketing Order modernization proposal. The Class I mover is the formula that determines the minimum price that processors pay for fluid milk. After significant producer losses after a change to the formula in 2019, the House Farm Bill would restore the previous formula and ensure that dairy farmers receive a fair price for their milk. The House plan would also require the USDA to conduct regular studies on the costs of processing milk, which are used to inform the make allowances that affect the prices paid to dairy farmers. These studies would provide more transparency and accuracy in the pricing system and allow for adjustments based on changing market conditions.

  • Supporting the bipartisan, House-passed Whole Milk for Healthy Kids Act to reverse the underconsumption of nutritious milk in our schools. The Whole Milk for Healthy Kids Act allows schools to offer 2% and whole milk as part of the school lunch and breakfast programs, giving students more choices and encouraging them to drink more milk.

  • Boosting funds for critical dairy trade promotion programs and protecting the use of common food names worldwide. The bill would increase the funding for the Foreign Market Development program and the Market Access Program, which help U.S. dairy exporters develop and maintain overseas markets. The plan would also support the efforts of the U.S. government and the dairy industry to defend the use of common cheese names, such as parmesan and feta, against the European Union’s attempts to restrict them through geographical indications.

  • Supporting voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program (EQIP) and improve the certification of Third-Party Service Providers with technical expertise related to conservation planning to better assist producers participating in National Resources Conservation Service (NRCS) programs. The committee-passed bill recognizes the environmental stewardship of dairy farmers and provides them with more resources and assistance to implement conservation practices on their farms. The House Farm Bill would also maintain the EQIP 50% livestock set-aside and allow states to offer larger payments for methane-reducing projects. Enhancing conservation programs and services available to dairy farmers helps them improve their environmental performance and sustainability, important components of meeting industry Net Zero goals.

  • And also of note, given the H5N1 outbreak the industry currently faces, the bill also would increase funding for animal health programs, such as the National Animal Health Laboratory Network and the National Animal Disease Preparedness and Response Program, that help protect the health and welfare of dairy cows and other livestock from diseases and pests.

These are just some of the highlights of the House Farm Bill that demonstrate its strong support for the U.S. dairy industry. I commend Chairman Thompson and committee members from both parties for their hard work and bipartisan cooperation in crafting and approving this legislation. I also need to call out the efforts of NMPF staff who, working with our member cooperatives, tirelessly worked to shape legislation that, if adopted, would greatly benefit our industry.

So now we’ve made the opening lap around the field with the House Agriculture Committee’s approval of its bill. But keep in mind the current farm law itself is the result of a one-year extension of the previous bill, and uncertainty abounds given the political calendar this year. I urge the full House and the Senate to follow their lead and get down to work crafting and passing a new Farm Bill as soon as possible.

We know that dairy is well-served by what the House Agriculture Committee has approved. Let’s all take that as positive momentum moving forward.


Gregg Doud

President & CEO, NMPF

 

Engagement Essential for Younger Producers

Dairy farmers are descending on Washington next week, as NMPF’s Young Cooperators lead the organization’s annual fly-in. Hannah and Matthew Lansing, this year’s chairs for the YC Program, say policy engagement is critical to dairy’s future.

“There are so many things that affect us, but they don’t affect us in a way that we see every day,” said Matthew Lansing, who along with his wife and her family milk 1,100 cows and farm more than 5,000 acres at Blue Hill Dairy in Clinton, Iowa. said. “Keeping involved and up-to-date as much as we can and pushing for things that we need on a farm on a day-to-day basis is really key for us to propel forward into the future and be what we need to be for consumers going forward.”

You can find and subscribe to the Dairy Defined podcast on Apple Podcasts, Spotify, Google Podcasts and Amazon Music under the podcast name “Dairy Defined.” For more on the YC Program, click here.

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


 

NMPF Thanks House Agriculture Committee for Farm Bill Progress and Key Dairy Wins

The National Milk Producers Federation thanked members of the House Agriculture Committee for their work to advance a 2024 Farm Bill through Congress this year, with bipartisan approval for a plan introduced by Chairman Glenn “GT” Thompson that includes numerous provisions important to dairy farmers and the cooperatives they own.

“We commend Chairman Thompson and committee members from both parties for approving a 2024 House Farm Bill that includes critical dairy priorities that will help support and grow this industry,” said Gregg Doud, president and CEO of NMPF. “We will do whatever we can to work with lawmakers in both chambers on a bipartisan basis to pass a new law as soon as possible, knowing that dairy is well-served by what the House Agriculture Committee approved today.”

Provisions benefiting dairy urged by NMPF are found across the bill’s titles, including ones that:

  • Extend the Dairy Margin Coverage (DMC) program through 2029; update production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extend the ability for producers to receive a 25% premium discount for locking five years of coverage;
  • Restore the “higher of” Class I mover to reinstate orderly milk marketing and require plant cost studies every two years to provide better data to inform future make allowance conversations, two key components of NMPF’s Federal Milk Marketing Order modernization proposal;
  • Support the bipartisan, House-passed Whole Milk for Healthy Kids Act to reverse the underconsumption of nutritious milk in our schools;
  • Boost funding for critical dairy trade promotion programs and protect the use of common food names worldwide;
  • Support voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program, with dedicated funds for livestock operations and language encouraging states to prioritize methane-reducing practices;
  • Improve the certification of Third-Party Service Providers with technical expertise related to conservation planning to better assist producers participating in National Resources Conservation Service (NRCS) programs;
  • Continue the Farm and Ranch Stress Assistance Network; and
  • Increase funding for animal health initiatives and programs.

Other provisions relevant to dairy include:

  • Increasing the DMC Program Tier 1 volume threshold from five million pounds to six million pounds;
  • Extending the Dairy Forward Pricing Program, the Dairy Indemnity Program, and the Dairy Promotion and Research Program;
  • Directing USDA to collect and publish cost-of-production data for organic milk;
  • Raising EQIP conservation funding from $2.4 billion in fiscal year 2025 to $3.25 billion in fiscal year 2029;
  • Requiring USDA to create a public process for updating conservation practice standards every five years; and
  • Requiring USDA to report to Congress on the department’s preparedness to support livestock and poultry growers facing economic losses in the event of an outbreak of a foreign animal disease.

NMPF Secures Policy and Funding Wins in Final Ag Spending Deal

NMPF worked closely with Congress on several key provisions of a spending bill, ranging from school milk to broadband access, that were included this year’s appropriations for the USDA and FDA that President Biden signed into law March 9.

Among the law’s highlights for dairy is legislative language supporting the consumption of milk and dairy products.

  • The bill requires the U.S. Department of Agriculture to allow 1% and fat-free flavored milk to be offered at all grade levels, not just in high school, when it finalizes its upcoming school nutrition standards rulemaking;
  • It prevents the final school nutrition rule from limiting sodium, which is often added to cheese for functional purposes, in a manner more restrictive than the Target 2 sodium levels published in USDA’s 2012 school meals rule; and
  • The explanatory statement accompanying the bill directs USDA not to reduce the maximum monthly milk allowance under the Women, Infants and Children (WIC) program as it finalizes updates to the WIC foods package.

The enacted measure also funds numerous important agriculture programs. Dairy highlights include:

  • $90 million for the ReConnect program, the USDA Rural Development program working to provide broadband service to eligible rural areas;
  • $12 million for the Dairy Business Innovation Initiatives program, which provides direct technical assistance and grants to dairy businesses to further the development, production, marketing, and distribution of dairy products;
  • $10 million for the Farm and Ranch Stress Assistance Network, a USDA program aimed at connecting those working in agriculture to stress assistance and support programs; and
  • $3 million for the Healthy Fluid Milk Incentives Projects authorized in the 2018 Farm Bill to create pilot programs to increase milk consumption among SNAP households.

In addition to what the bill offers, the final bill does not include funding for Supplemental Nutrition Assistance Program (SNAP) pilot projects limited to “nutrient dense” foods as defined by the most recent Dietary Guidelines for Americans. NMPF advocated against this provision, as whole and reduced-fat (2%) milk would not have been able to be included in the pilots because the current guidelines only recommend consumption of low-fat and fat-free milk varieties.

Focus on Farm Bill Begins After Tumultuous Speaker Election

The tumultuous start to the 118th Congress has implications for the farm bill due later this year, as changes to House procedures may lead to a more free-wheeling approach to passing legislation.

Following a midterm election that saw Republicans win control of the House of Representatives by a smaller margin than anticipated, the opening of the 118th Congress saw the most contentious race for Speaker of the House in a century, with Rep. Kevin McCarthy (R-CA) prevailing after 15 ballots once a handful of members agreed to drop their opposition following an agreement on overall House rules and floor procedures.

McCarthy gained by victory by making agreements with a small group of recalcitrant Republicans, which include plans to allow a wider array of floor amendments to be debated and voted on major pieces of legislation this Congress. This may have significant implications for the next farm bill. While past farm bill debates have featured scores of amendment votes, the last House floor farm bill debate in 2018 included fewer amendments.

McCarthy’s election also allowed House committees to organize. Reps. Glenn ‘GT’ Thompson (R-PA) and David Scott (D-GA) have formally become the Chairman and Ranking Member of the House Agriculture Committee, respectively, and will be the House’s farm-bill drivers. Separately, and with significant importance for key dairy trade and tax issues, Rep. Jason Smith (R-MO) won a contested race to become Chairman of the House Ways and Means Committee while Rep. Richard Neal (D-MA) will serve as the committee’s Ranking Member, continuing in his position as its top Democratic member.

The House farm-bill process is already underway. Chairman Thompson led a bipartisan delegation of members in January to Harrisburg, PA for a farm bill listening session at the Pennsylvania Farm Show. NMPF staff attended the session, which featured multiple dairy speakers voicing support for maintaining and tweaking the Dairy Margin Coverage program and improving the Federal Milk Marketing Order system, including restoring the Class I mover to its previous ‘higher of’ formula on account of the asymmetric risk farmers bear under the current mover.

Meanwhile, the U.S. Senate kicked off the new Congress more quietly. But Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) and Ranking Member John Boozman (R-AR) have also signaled a quick start to the farm bill process. The duo plans to continue holding farm bill hearings this winter and spring. NMPF looks forward to working with the House and Senate to finalize a farm bill this year that maintains and improves current policy regarding dairy safety net and risk management issues, conservation and sustainability, trade, and nutrition.

2023 Promises Policy Progress

A Washington truism is that the period that occurs after an election cycle is complete, but the next one hasn’t yet overtaken everyone’s attention, is when policy gets done. That makes it important for this industry to push for significant progress in 2023, as the 118th Congress convenes and clear policy challenges lie ahead.

High on NMPF’s priorities is leading the way toward federal adoption of a modernized Federal Milk Marketing Order system for producers that promotes a stable industry and provides fairer, more-up-to-date pricing for the nutritious and necessary products dairy farmers and their cooperatives provide. We made tremendous progress on this issue in 2022, driving a consensus approach that gathered many of this industry’s smartest minds and, through more than 100 committee and task force meetings of NMPF Board members and producers, and marketing experts from our member cooperatives, from all regions of the country, arrived at a proposal unanimously endorsed at our annual meeting in October. That’s a lot.

But there’s much more required to bring these efforts to fruition – much, much more. NMPF’s proposal itself isn’t quite complete – an important part of the plan, recommendations on updates to the nation’s  Class I price surface, are expected this month. From there, we will seek a final endorsement that prepares the way for us to request a USDA federal order hearing. That also will require extensive preparation, as the national consensus we’ve built among NMPF members will then form the basis of a conversation in which the entire industry will participate.

We welcome that conversation, which undoubtedly will include some good and not-so-good ideas from multiple interests. But throughout that conversation – and the hearing, and ultimately a producer vote – it will be critical to transcend narrow self-interest and work in a spirit of good faith to ensure that FMMO modernization is truly in the best interests of all producers. NMPF has kept that goal throughout; by crafting the most thoroughly researched, discussed, vetted and voted-upon of all proposals, we are in a strong position to meet the leadership challenge that falls to us as the nation’s dairy producer organization. We look forward to meeting this challenge, which will benefit all of dairy for years to come.

At the same time the FMMO discussions advance, we will be very active in shaping the farm bill due later this year, along with engaging in other legislative opportunities (and challenges) that come dairy’s way.

The twice-a-decade reauthorization of federal farm and nutrition programs sets the rhythm of ag policy in Washington, but it’s also important to remember that, in the end, the 2023 Farm Bill is simply another vehicle for advancing better policy, and it’s far from the only one available. Unlike the previous two farm bills, in which dairy policy clearly required significant change, this time around the main farm bill dairy safety net and risk-management programs – the Dairy Margin Coverage Program created at NMPF’s insistence, and the Dairy Revenue Protection and Livestock Gross Margin programs, which NMPF’s efforts made workable for broad producer participation – need evolution more than revolution.

Let’s not forget that the Farm Bill has many components, including sections governing trade, conservation and other areas critical to agriculture, so we’ll make sure all our priorities in the bill are addressed while pursuing other legislative goals, which range from financial incentives that support dairy’s Net Zero vision to immigration programs that work for dairy, through any means possible.

FMMO modernization and the farm bill alone would be more than enough to fill one year of Washington policy work. But of course, these two items are only the beginning of a long list of what must get done, from other legislative initiatives to federal nutrition policy proposals to overcoming regulatory challenges to expanding overseas markets The Biden Administration needs to pick up the pace on new trade deals even as it aggressively enforces existing ones. Yet another iteration of EPA’s Waters of the U.S. rule – this one going the wrong direction for agriculture – requires a strong response. And of course, we’re still waiting for FDA to give its guidance on labeling of plant-based dairy imitators, eternally hoping the agency charged with enforcing accurate nutrition labeling does what’s right for consumers.

Each year in Washington represents a new beginning. Opportunities are plentiful, and opportunities go to those who seize them. We embrace the challenge and expect that, working with the community that moves dairy forward, we can achieve great policy progress in the year ahead.


President & CEO, NMPF

Dairy Engaged in Busy Lame-Duck Congressional Session

Congress is working to finish several key measures before adjourning for the year, one with special urgency for Democrats as Republicans take control of the House of Representatives in January.

While Republicans netted enough House seats to flip the chamber as a result of November’s elections, they did not win as many seats as they were expected and did not reclaim control of the U.S. Senate, making any shifts in the upcoming 118th Congress potentially less dramatic than some analysts anticipated before the election. Members are hoping to wrap up business that includes dairy farmer and cooperative priorities. Among highlights:

  • Getting ag labor reform across the finish line. The Senate is currently working on its own ag labor measure, refining and improving upon the reforms provided by the Farm Workforce Modernization Act, a bipartisan House-passed measure that would provide permanent legal status for current farm workers and their families and reform the H-2A agricultural guest worker program to include dairy and other year-round workers. Senators in both parties have been seeking to strike agreement on a compromise version that can garner 60 Senate votes. NMPF continues to work closely with Senate negotiators to seek a path forward for any such final measure.
  • Passing a fiscal year 2023 spending bill to fund the government. NMPF continues to advocate for enhanced funding for the Food and Drug Administration to review and approve animal feed ingredients that can reduce enteric methane emissions from livestock by as much as 30 percent, which will be critical as dairy seeks to reach its goal of achieving a net zero greenhouse gas footprint by 2050.
  • Another key dairy priority in appropriations is securing additional funding for dairy farmers whose reimbursements under USDA’s Pandemic Market Volatility Assistance Program were limited by the program’s five-million-pound per producer cap, as well as those farmers unable to receive program funds because their milk was not pooled on a Federal Milk Marketing Order but still endured similar price losses. USDA created the program last year to partially reimburse farmers for unintended COVID-19 pandemic losses caused by the heavy weighting of federal dairy purchases toward cheese combined with a change to the Class I mover formula in the 2018 Farm Bill.

Congressional Balance Affects Dairy Policy but Doesn’t Shift Priorities

Control of the House of Representatives remains in doubt nearly one week after last Tuesday’s elections. But regardless of who is in charge in 2023, dairy’s priorities will move forward, says Paul Bleiberg, NMPF’s Senior Vice President for Government Relations, in a Dairy Defined podcast released today.

“The basic policy priorities remain the same,” said Bleiberg. “There are some areas where we might have more support from Republicans, some where we might have more support from Democrats, some where we might have more support on regional lines, and it’s really a question of strategy. Who’s going to be on the Agriculture Committee? Who’s going to be on the Appropriations Committee or the Ways and Means committee? Who are the members that we might go to kind of champion different priorities in those or other committees? That sort of is subject to those dynamics, but our priorities will be our priorities.”

You can also find the podcast on Apple PodcastsSpotifyGoogle Podcasts and Amazon Music. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

Dairy Progress Possible on Capitol Hill, NMPF’s Bleiberg Says

With rising energy costs and a war effort riveting attention in Washington, 2022 is turning out to be an unusually busy year on Capitol Hill – one that holds opportunity for dairy, said Paul Bleiberg, Senior Vice President of Government Relations for the National Milk Producers Federation, in a Dairy Defined podcast released today.

“Election years can sometimes be quiet in a lot of ways. But there’s still a lot of sausage making that goes on,” he said. “We are hopeful that we’ll see some progress on supply chain legislation, in particular the Ocean Shipping Reform Act that our trade team has worked really hard on, to move forward in a variety of different contexts. And then that farm bill process is just going to get more and more significant as the date gets closer.”

Bleiberg also in the podcast discusses the prospects for “climate-smart” agricultural legislation to pass Congress this year and looks at gains for dairy in recent spending legislation.

The full podcast and transcript are below. You can find and subscribe to the podcast on Apple Podcasts, Spotify,   Google Podcasts and Amazon Music under the podcast name “Dairy Defined.” Broadcast outlets may use the MP3 file. Please attribute information to NMPF.