Tag: USDA

Dairy Key to USDA Ag Innovation Agenda Research Strategy

Posted on by Theresa Sweeney

USDA released on Jan. 12 the U.S. Agriculture Innovation Strategy Directional Vision for Research summary and dashboard that will help to guide future research decisions within USDA. The strategy synthesizes information USDA collected as part of the public engagement in 2020 on research priorities under the Agriculture Innovation Agenda.

NMPF, Newtrient LLC, and the Innovation Center for U.S. Dairy submitted a series of comments to USDA on their request for comments on the Ag Innovation Agenda. These wide-ranging comments helped USDA put forth a clear and comprehensive research strategy specific for the U.S. dairy industry under four aspirational goals:

  • Production Aspirational Goal: Increase agricultural production by optimizing yield and/or quality with higher input use efficiency;
  • Production Capability Aspirational Goal: Increase agricultural production capabilities of soil, water, and air by developing and implementing sustainable farming tools and practices;
  • Market Expansion and Diversity Aspirational Goal: Increase market diversity and product utility of the farming system to expand value, reach, and resiliency; and
  • Data Aspirational Goal: Standardize, align, and integrate agricultural research and operational data to enable and energize a broad informatics ecosystem to drive tomorrow’s agricultural operations and state and federal programs.

NMPF Calls for More-Equitable Class I Mover as Part of Push for Improved Dairy-Pricing

Posted on by Theresa Sweeney

The National Milk Producers Federation today called for changes to the so-called Class I fluid milk price mover to recover losses dairy producers have faced from the extreme price disruptions caused by the coronavirus pandemic, part of a suite of policies essential to advancing the well-being of dairy farmers and the entire industry in response to challenges brought to light by the COVID-19 pandemic.

“We are seeking consensus across the dairy industry for changes to the Class I mover that remedy economic damage to dairy farmers who have disproportionately suffered as a result of this pandemic,” said Jim Mulhern, President and CEO of NMPF, after a meeting of NMPF’s Executive Committee on Friday to discuss policy approaches. “The intent behind the current mover was a revenue-neutral solution to the concerns of fluid milk processors about hedging their price risk. With that balance severely upended due to the pandemic, a modified approach is necessary. We need a solution that provides more equity and balance between farmers and processors.”

The current Class I mover used to price fluid milk in federal milk marketing orders took effect in 2019. It applies a $0.74/cwt adjuster to the monthly average of Class III and IV prices. That replaced the previous Class I formula, which was based on either the Class III or IV price each month, whichever was higher – an approach that worked for farmers but made it more difficult for fluid milk handlers to hedge milk prices using the futures market. The 2019 change was intended to be revenue-neutral and was widely supported across dairy when it was implemented. But the significant gap between Class III and IV prices that has developed during the pandemic has exposed dairy farmers to asymmetrical losses not experienced by processors.

Dairy farmers may lose roughly $800 million in revenues under the current Class I mover, making its re-examination necessary.

NMPF’s Executive Committee on Friday supported a motion directing the organization to explore, with other industry stakeholders, updates to the pricing formula that better protect dairy producers. The committee also discussed other dairy-pricing improvements as part of an ongoing in-depth NMPF examination of important issues related to Federal Milk Marketing Orders. NMPF leadership directed staff to convene NMPF’s Cheese Pricing Task Force to further refine proposals involving both public and private sector organizations that could help address ongoing imbalances in the pricing of block and barrel cheese.

“These issues are challenging and complex, but also crucial to face if we are to best promote prosperity among dairy farmers, their cooperatives, and the entire industry,” Mulhern said.

Dietary Guidelines Reaffirm Dairy’s Crucial Nutritional Benefits; Fats Review Urged for 2025

Posted on by Theresa Sweeney

The National Milk Producers Federation praised USDA and HHS today upon the release of the 2020-2025 Dietary Guidelines for Americans (DGA), which reaffirmed dairy’s central role in diet as a provider of essential nutrients that are often under-consumed in American diets. NMPF also pledged to continue efforts to broaden consideration of the latest science on dairy fats in the next examination of the federal guidelines, which are released twice each decade.

“USDA and HHS deserve praise for once again recognizing just how vital dairy is to the nation’s health and well-being,” said Jim Mulhern, president and CEO of NMPF. “We encourage them to affirm that role even more clearly in the next iteration of the Dietary Guidelines, to reflect the positive contribution of dairy fats in diets that’s increasingly recognized in a growing body of evidence.”

The guidelines culminate nearly two years of work that began in 2019 with the selection of the Scientific Advisory Committee, which drafts recommendations for the U.S. Department of Agriculture and the Department of Health and Human Services.

The latest update to the dietary guidelines restates dairy’s importance to diet. Highlights include:

  • A recommendation of three servings of dairy in the Healthy U.S. Eating pattern and Healthy Vegetarian Eating patterns, in keeping with past guidelines
  • Dairy’s continued recognition as a distinct food group
  • A recognition that Americans aren’t consuming enough dairy to meet their nutritional needs
  • Dairy’s reaffirmation as a source of four nutrients of public health concern, including potassium, calcium, and vitamin D, as well as iodine for pregnant women
  • A recommendation of milk, yogurt, and cheese in the first-ever healthy eating patterns geared toward infants and toddlers ages birth to 24 months.

“The panel’s recognition that dairy is a key source of ‘nutrients of concern’ in U.S. diets is especially important,” Mulhern said. “During a time of food insecurity and concerns about proper nutrition among Americans, dairy is a readily accessible solution to clearly identified public-health challenges. Dairy farmers work hard to be part of that solution, and the panel’s recognition of the nutritional importance of dairy is greatly appreciated.”

The Dietary Guidelines for Americans have significant implications for numerous government policy areas, including guiding the types of milk served in school meal programs and setting the parameters for how nutrition programs are implemented and developed.

NMPF Thanks Congress for Dairy Provisions in COVID Assistance Package

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) thanked Congress today for the positive steps it is taking through COVID relief legislation to assist dairy farmers who have faced unprecedented market volatility while working every day to nourish struggling families.

“With difficult months of the pandemic still ahead, it was crucial for lawmakers to come to a bipartisan agreement that helps farmers do what they do best: feed families. To do this, they need financial stability and ways to connect to families in need. We thank Congress for its leadership, and we look forward to working with USDA in implementing this legislation. Importantly, this package includes nearly $1 billion in targeted support to help dairy producers continue to feed families throughout these difficult times,” said Jim Mulhern, NMPF president and CEO.

Highlights of the pandemic legislative package for dairy producers include:

  • Dairy Donation Program – the measure provides $400 million for a new NMPF-backed Dairy Donation Program to help dairy stakeholders and non-profits work together to provide dairy products to food-insecure households and minimize food waste. This program is carefully balanced and is open to all dairy products. NMPF is grateful to Senator Debbie Stabenow (D-MI) and Rep. Collin Peterson (D-MN) for their leadership in securing this and other dairy provisions in the package.
  • Payment Limits Flexibility – the bill includes dedicated funding to allow USDA to provide additional compensation to producers who were unable to receive the full support they needed under the Coronavirus Food Assistance Program on account of payment limitations. NMPF thanks Rep. Mike Conaway (R-TX) for advocating for this provision, as well as the many members who have sought flexibility on this front all year long including Sens. Jerry Moran (R-KS) and Dianne Feinstein (D-CA) and Rep. Jim Costa (D-CA).
  • Supplemental DMC Payments – the measure establishes Supplemental Dairy Margin Coverage payments for farms that have increased their DMC production history since 2014. These payments will be based on the difference between the farm’s 2019 actual production and its DMC production history. While the provision is targeted to smaller operations, it will enhance the farm bill baseline for all dairy farmers as it runs concurrently with DMC up to 2023.
  • Paycheck Protection Improvements – the bill includes the bipartisan NMPF-backed Paycheck Protection for Producers Act which would make the Paycheck Protection Program work better for sole proprietor, independent contractor, and self-employed dairy farmers by allowing them to use their 2019 gross farm income to determine their PPP loan amounts. NMPF commends Sens. John Thune (R-SD) and Tammy Baldwin (D-WI) and Reps. Ron Kind (D-WI), Glenn ‘GT’ Thompson (R-PA), Anthony Brindisi (D-NY), and John Joyce (R-PA) for their work on this measure.

Dairy producers will also be eligible for support in the $11 billion agricultural disaster assistance package Congress has included in the legislation, with additional details expected in coming days. Of note, at least $1.5 billion of this package is dedicated to additional product purchases.

NMPF has served its members as the leading advocate for U.S. dairy farmers throughout the coronavirus pandemic. It has also been an industry leader in providing useful informational resources for the dairy sector.

NMPF’s Mulhern Speaks on Tom Vilsack’s Nomination to Lead USDA

Posted on by Alan Bjerga

NMPF President and CEO Jim Mulhern talks about Tom Vilsack’s nomination to become USDA Secretary on Brownfield Ag News. “He has a deep understanding of our industry and frankly, I think a deeper understanding of all of U.S. agriculture,” Mulhern says in the broadcast.

NMPF excited for Vilsack’s White House return

On Final Day, NMPF Urges Dairy Farmers to Sign Up for DMC

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) is urging dairy farmers to sign up for 2021 coverage under the Dairy Margin Coverage (DMC) program if they haven’t yet done so, as today is the final day producers may enroll in the main federal dairy-farmer risk-management program. NMPF is advising any producer who wants to enroll in DMC for 2021 to contact their local Farm Service Agency office by the close of business today to at least notify them of intent to enroll.

“Given the current economic outlook and the heightened uncertainties of 2021, DMC signup, especially at the maximum $9.50 coverage level, is the rational choice for dairy producers,” said Jim Mulhern, NMPF President and CEO. “But to take advantage of this program, farmers need to sign up now.”

The DMC, the main federal risk-protection tool for dairy farmers, is currently projected to pay all producers enrolled at the maximum $9.50/cwt. coverage level through much of 2021. The program, which by year’s end may end up with payments for five months of 2020, offers protection against volatile market conditions that are expected to persist well into next year.

NMPF has produced an easy-to-digest brochure highlighting the benefits of DMC coverage and an explanation of how the program works. Dairy producers can also visit NMPF’s page on risk management to learn more about DMC and other tools to promote financial security for dairy operations.

Today is also the signup deadline for the second round of Coronavirus Food Assistance Program disaster payments.

October DMC Margins Above Trigger; Declines Expected in 2021

Posted on by Theresa Sweeney

The monthly margin for October under the Dairy Margin Coverage (DMC) program increased by $1.93 per cwt from September’s margin, to $11.13 per cwt, meaning no payments to farmers for milk produced that month. Still, forecast margin declines made a compelling case for signup for the program in 2021, due by Dec. 11.

Both the milk-price and the feed-cost components of the margin formula increased in October; the milk price increase during the month, $2.30 per cwt, far outpaced the $0.57 per cwt higher feed cost. For the second month in a row, both the corn and soybean meal prices were higher by appreciable amounts in October.

As the DMC 2021 deadline approaches, futures markets continue to indicate that margins will drop below $9.50 per cwt early next year and remain well below that level through at least next summer. As this year proved, making the decision to sign up for the program based on the market outlook near the end of the enrollment period can be very misleading, and that signing up should be the default decision in any case. But for next year, the outlook further reinforces that indication, erasing any residual uncertainty about participating next year at $9.50 per cwt for the first five million pounds of production history.

The DMC information page on NMPF’s website offers a variety of educational resources to help farmers make better use of the program. NMPF also is offering dairy farmers, cooperative members and state dairy associations a free webinar at 1:30 p.m. ET on Wednesday, Dec. 2, to help them develop effective risk management plans. Participants will be able to ask questions about the year ahead and learn more about how farmers can manage their risk through expected turbulence.

Washington May Be Divided, But Bipartisanship Aids Dairy Gains

Posted on by Theresa Sweeney

A bitter election season is winding down, and the shape of the Biden Administration and Congress is becoming clear. Just as clear is another political reality: Washington next year will be, if anything, more closely divided than it was before.

That places bipartisanship at a premium, as any lasting solutions to policy challenges will require cooperation from both sides of the aisle. Fortunately, dairy is well-situated to play an important role in the agreements that will be necessary to get anything done in Washington, as evidenced by the many bipartisan policy gains that bore fruit for dairy in 2020.

Consider this. At the beginning of this year, dairy prices were projected at levels sufficient to keep income-over-feed-costs margins high enough to avoid triggering payments under the Dairy Margin Coverage Program. Instead, as the coronavirus crisis seized the nation beginning in March, prices plunged, leading to emergency-milk dumping and triggering about $200 million in payments to producers who enrolled in DMC.

That assistance came about because of the 2018 farm bill, passed with the support of both parties and including a revamp of dairy risk management tools that literally paid off at an incredibly crucial time. Signup for DMC coverage in 2021 is open until Dec. 11, and with payouts projected for the first eight months of the year, it’s important that farmers take advantage of this important program. Doing so directly delivers the benefits of effective bipartisan policymaking to the farm.

On top of DMC assistance, bipartisan cooperation yielded several benefits to dairy this year that have proven crucial to farmers’ economic health. The Coronavirus Food Assistance Program (the latest round of which also has a Dec. 11 signup deadline) bolstered many farmers’ cash flows, with two rounds of payments providing disaster assistance averaging as high as $2.47 per cwt for all milk marketed in 2020 and softening the blows of pandemic disruptions for many farm families. In tandem with CFAP, the Farmers to Families Food Box program has fed those in need and kept processors in business, benefiting communities, preserving jobs and ensuring that farmers have supply chains to serve.

NMPF also helped ensure that programs implemented for small businesses nationwide worked for dairy. The Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loans (EIDLs), two coronavirus-related rescue measures implemented by the Small Business Administration (SBA), initially evolved from a hope to a frustration for dairy producers, who didn’t have equitable access to the programs. Working with allies, members of Congress from both parties, and administration officials, NMPF rectified many of the hurdles to the programs, increasing dairy’s access to the small business support as the SBA programs continued.

This more than $5 billion infusion of federal aid, and ongoing improvements in their administration, has been a difference-maker for dairies across the nation. Albeit, not all our farmers received the same level of support due to issues including payment limitations, organizational structures or market volatility. Nevertheless, in a telling statistic, the pace of dairy farm consolidation appears to be slowing this year – this is counterintuitive given the disruptions farms have faced, but a tribute to the effective efforts made to help farmers weather these storms.

All of it has been the product of fruitful collaboration, from within the dairy community as we at the National Milk Producers Federation and cooperatives and dairy associations across the country together pursued policy goals, to Capitol Hill, where champions in both parties spoke out on the need for dairy initiatives, and in the administration, which implemented programs funded by a Democratic House of Representatives and a Republican Senate for the betterment of dairy.

We’ve also fostered bipartisan collaboration on trade, with lawmakers from both parties calling for action against protectionist EU practices that inhibit dairy-export growth and defending the use of common cheese names. And we’ve worked for bipartisan agreement on immigration – a promising package passed in the House nearly one year ago stalled in the Senate as coronavirus demanded attention, but renewed efforts are expected in the next Congress.

In the near term, we remain hopeful that Congress may pass another COVID-19 relief package this month, given the acute strains our health-care systems and economy are facing now and for at least the next several months. Times of crisis demand unity – and despite the tendency toward reflective naysaying about Washington, consensus is possible to achieve, as the gains of the past year have shown. NMPF is advocating for additional relief for dairy producers that reflects the losses they have suffered, no matter the size of an operation. We are also urging Congress to approve a dairy donation program that can maximize dairy consumption among food-insecure populations.

In 2021 NMPF will continue its work as an advocate for dairy producers and their cooperatives in policy decisions, with our hallmark bipartisanship giving us a seat at the table wherever, whenever, and with whomever is making important decisions affecting farmer livelihoods.

NMPF Offers Webinar on 2021 Dairy Economy as DMC Deadline Approaches

Posted on by Theresa Sweeney

With deadlines for the Dairy Margin Coverage program and Coronavirus Food Assistance Program signups approaching on Dec. 11, the National Milk Producers Federation is offering dairy farmers, cooperative members and state dairy associations a free webinar Dec. 2 to help them develop effective risk management plans that can protect them in what’s predicted to be a volatile year in 2021.

NMPF Chief Economist Peter Vitaliano, creator of the monthly Dairy Market Report released earlier today, will be discussing the dairy price outlook for next year, and the value of risk management tools including Dairy Margin Coverage, in a webinar moderated by Chris Galen, NMPF’s Senior Vice President for Member Services, at 1:30 p.m. EST on Wednesday, Dec. 2. Participants will be able to ask questions about the year ahead and learn more about how farmers can manage their risk through expected turbulence.

The webinar will examine the milk and feed price forecast, forecast margins, and analyze how the Dairy Margin Coverage program will offer farmers protection against price volatility. To register, click here: https://us02web.zoom.us/webinar/register/WN_yr4QZ8HhSc-zdvujrg_zBA

Current USDA calculations predict that the DMC, adopted with NMPF’s leadership in the 2018 farm bill, will offer payments averaging $1.05 per cwt in the first eight months of next year for those at the maximum $9.50 coverage level. That vastly outstrips program premiums, making coverage for a farm’s first 5 million pounds of milk production a no-brainer, Vitaliano said. The DMC also offers affordable protection to all producers against price catastrophes and can be used in tandem with other risk management tools, such as the Dairy-Revenue Protection and the Livestock Gross Margin programs.

To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the recently updated online dairy decision tool offered through the USDA’s DMC informational page. Dairy producers can also visit NMPF’s page on risk management to learn more about DMC, CFAP and other tools to promote financial security for dairy operations.

Jim Mulhern Remarks at NMPF/NDB/UDIA Joint Annual Meeting

Posted on by Theresa Sweeney

Note: This is a lightly edited transcript of remarks made Oct. 27.

Good afternoon, and good morning to all of you joining us in the West. Let me add my thanks to you for being here for our first-ever — and I hope last ever — virtual annual meeting. I do wish we could be together in person and, like all of you, I’m looking forward to getting to the other side of this dreadful pandemic. But right now, we’re all trying hard to make the best of a bad situation.

So, I want to jump right into things here with a few brief remarks.  Then we’ve got another great presentation for you: Our annual NMPF Town Hall issues update with a panel featuring some of our key experts working on your behalf on a wide range of dairy policy issues, economics and the FARM Program.

Because of our more limited time format for this year’s meeting we’ve condensed our traditional Town Hall panel for this live presentation. But we still want you to provide you with more in-depth discussions on all the issue areas we are involved in. So, we’ve taped a series of presentations that you can find online on our website, nmpf.org. I encourage you to watch them at your convenience to learn more about the wide range of important work NMPF has done this year.

And, man, what a year. For those who were with us last year in New Orleans, I’m sure none of you remember what I talked about. But my message was the importance of resilience — how it is one of the key strengths that all of you as dairy farmers consistently exhibit and how it has helped us get through nearly a half-decade of difficult times.

Well, little did I know back then just how important resilience was going to be for all of us. This year has posed challenges beyond what any of us could have imagined just one year ago…. challenges on our farms, in our families, and to our futures.

And yet, the obstacles we’ve faced this year will only make us stronger as we deal with the hardships that, yes, still lie ahead.

Think back to March, when the COVID-19 crisis began to profoundly change all our lives. The challenges were immediate… and clear. The solutions, less so. At National Milk, as we looked at all of this, there were a few things we knew. We knew that the nation’s dairy farmers and our member cooperatives are essential for the nourishment of those we serve. We knew that the dairy community can be formidable when it pursues its goals with unity and commitment. And we knew that our organization has demonstrated a track record of effectiveness, even in the face of daunting tasks.

That all gave us confidence. And just like the thousands of dairy farmers we serve, we went to work to tackle the crisis, consulting closely with our leaders, seeking ways to stem the damage and improve lives.

We needed to be a resource to not only our dues-paying members, but to all dairy farmers who were dealing with immediate crises in their operations and supply chains. And even in those darkest times, there were bright spots. Aided greatly by the efforts of the U.S. Dairy Export Council, international trade saw strong demand. Here at home, retail milk flew off store shelves, as consumers showed their support for the nutritious beverages they relied on most.

But the root of dairy’s resilience was centered, as always, on the farm, and led by many of you…. our farmer-leaders. Faced with an unprecedented rupture in the balance of supply and demand, many farmers used every tool in their arsenal to throttle back production — from changing feed rations and milking schedules to putting the brakes on herd expansion. Those efforts helped stave off what would have been a complete price collapse and they set the stage for a rebound.

Farmers and our co-ops took important steps to address the issues they could control. Meanwhile, we advocated for our industry before Congress and  USDA, and the White House. As a highly perishable, 24/7/365 days a year commodity, dairy never stops, and that made the need for immediate, robust support for dairy simply essential. We engaged in marathon discussions, and strategized across the industry and throughout the government. Together, we succeeded in making sure dairy received important levels of government disaster assistance, both in the first round of the Coronavirus Food Assistance Program payments and in the more recent CFAP 2.

To be sure, these government programs are far from perfect – not all farms were treated equally, and we continue to work with Congress and USDA to remedy flaws in future disaster assistance. But this assistance did much to cushion the immediate blows to balance sheets from COVID-19. And it continues to help stabilize operations nationwide.

Beyond direct federal disaster assistance, we also knew that, while farm payments helped, they didn’t address the root of COVID-19’s impact on dairy – the devastating blow to dairy demand from lost foodservice sales, a huge part of our market.

We emphasized to policy makers how government dairy purchases can create a positive economic cycle, with programs like the popular Food Boxes providing  products to families hit hard by the pandemic. Those government purchases create demand that strengthens prices, keeps processors operating and enables dairy farmers to get support where they really want it — through improved milk checks.

We’ve experienced a roller-coaster ride in prices for sure – but the federal assistance kept the worst-case scenarios from occurring. And it shows yet again how effective advocacy can prompt a forceful and helpful government response.

Just as important as protecting our businesses, of course, is protecting our families, and our workers, and our communities, especially during a pandemic. Dairy has always been a leader in stewardship to our land, our animals and our community – and this year has been no exception. Through the National Dairy FARM program, we quickly made available industry best practices and guidance to help address the crisis, and through our outreach and our coronavirus toolbox on our website, we gave our members – and all dairy farmers – the information they needed to adjust to dairy farming in this new reality.

So, what will all this mean in the days ahead? Well, make no mistake: this crisis is far from over. Without a vaccine, with an uncertain political future, with an economy that still hasn’t found a “new normal,” there’s no happy ending I can share with you today, because we still have a long way to go. But I’d like to conclude with a few observations that offer hope and optimism for the journey ahead:

  •  First, it is the strength of Farmer-owned dairy cooperatives that have led the industry through this crisis, and they will carry it through to the end. From our economic leadership, to our commitment to customers and consumers, to making our voices heard in Washington, co-ops remain the heart and soul of this industry. And this industry benefits best when our cooperatives speak with unified voices, on everything from marketing orders to on-farm best practices.
  • Despite the few naysayers out there who love to sow discord in difficult times, it is our unity as an industry that enables us to achieve our goals and helps us prevail. We will continue to work together as this crisis evolves, and our track record of success this year helps set the stage for future success.
  • Finally, the lessons we’ve learned here are applicable elsewhere. We have learned that the Dairy Margin Coverage program, which we fought for in the 2018 farm bill, provides important risk management and affordable catastrophic coverage when farmers need it most.  And we’ve learned again that the positive stewardship story so crucial this year, focusing on farmers and their high level of  care for their animals and the land, this provides the backbone needed for other exciting and challenging endeavors, such as our industrywide Net Zero Initiative and our Stewardship Commitment goals.

So, know that our challenges and risks are far from over.

But we’ve already proven a lot – to ourselves, and to the nation. We will get through this, and we’re stronger now than before. Throughout the world, everyone is hoping tomorrow will be brighter. We KNOW it will be, because of the work we’ve done together that has brought us here today.

Thanks again for this opportunity to speak to you.