Digest Highlights: Dairy organizations launch campaign to show dairy industry’s economic impact. House may take another vote on 2018 Farm Bill in late June. March fluid milk sales down again. Most common agribusiness insurance claims revealed. Find these and other news summaries affecting dairy farmers here.
New ‘Got Jobs?’ campaign demonstrates dairy’s economic impact
A new campaign launched by three U.S. dairy organizations aims to shine a data-driven spotlight on dairy’s economic impact. The U.S. Dairy Export Council (USDEC), the International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF) are collaborating to create the new “Got Jobs? Dairy Creates Jobs, Exports Create More” campaign.
Over the next year, they will share in-depth data and narratives featuring dairy farmers, dairy company employees, retailers and many others throughout the food supply chain at the campaign's website.
The U.S. dairy products industry supports nearly 3 million workers, generates more than $39 billion in direct wages and has an overall economic impact of more than $628 billion, according to IDFA’s economic impact tool, Dairy Delivers. The tool also examines dairy’s economic ripple effect on other sectors of the national economy, showing dairy is responsible for $24.9 billion in state and local business tax revenues and another $39.5 billion in federal business tax revenues.
The website will offer monthly features, videos and facts demonstrating dairy’s impact on jobs, tax revenue and communities around the country.
Next House vote on 2018 Farm Bill could come in late June
It now appears the U.S. House will vote on a 2018 Farm Bill on June 22. The initial House draft of the 2018 Farm Bill (H.R. 2, the Agriculture and Nutrition Act of 2018) was voted down, 198-213, on May 18. All Democrats and 30 Republicans voted against the bill.
The original proposal advanced out of the House Agriculture Committee on a straight party line vote. Twenty-six Republican ag committee members voted for the bill, with 20 Democrats voting against it.
As proposed, the House version of the 2018 Farm Bill made additional changes to dairy safety net programs modified in a federal budget bill in February.
Read: What’s in it for you: House 2018 Farm Bill proposal lays out dairy outline
The House is scheduled to be in session 16 days in June and 12 days in July, before departing for the August recess. Then, the House reconvenes after Labor Day and is in session 11 days in September.
The Senate Agriculture Committee continues work on its version of a farm bill, with a markup possible in the Senate Agriculture Committee sometime in June.
The current farm bill expires on Sept. 30.
March fluid milk sales decline
March 2018 sales of conventional and organic whole milk rose 2.5 percent and 1.5 percent compared to a year earlier, respectively, but that wasn’t enough to stem the decline in overall fluid milk sales.
March 2018 total U.S. packaged fluid milk sales were estimated at 4.1 billion pounds, down 3 percent from March 2018, according to the USDA’s Dairy Market News. U.S. sales of conventional products totaled 3.9 billion pounds, down 2.9 percent from the previous year, while sales of organic products, at 218 million pounds, were down 5.5 percent. Organic represented nearly 5.3 percent of total sales for the month.
Among all categories, only flavored whole milk also posted a gain in March, up 11.2 percent from the same month a year earlier. Low-fat and fat-free conventional and organic varieties were leading decliners.
Through the quarter of the year, U.S. fluid milk sales totaled 12.1 billion pounds, down 1.9 percent compared to the same period a year earlier. Year-to-date 2018 sales of conventional products totaled 11.4 billion pounds, down 1.9 percent. January-March 2018 sales of organic products, at 652 million pounds, were down 1.6 percent. Organic represents nearly 5.4 percent of total sales for the year.
The U.S. figures represent consumption of fluid milk products in federal milk order marketing areas and California, which account for approximately 92 percent of total fluid milk sales in the U.S. Sales outlets include food stores, convenience stores, warehouse stores/wholesale clubs, nonfood stores, schools, the food service industry and home delivery.
Nationwide reveals most common agribusiness insurance claims
Nationwide, a major U.S. insurance provider, listed the top 10 types of agribusiness accident claims received by the company in 2017:
1. Motor vehicle accidents
2. Workers' compensation for disability or death
3. Misapplication of chemicals or drift
4. Slip, fall or injury
5. Food-related claims
6. Animal caused damage or bite
7. Glass breakage
8. Wind damage
9. Hail or lightning damage
10. Fire damage or loss
The top 10 types of agribusiness claims have accounted for more than 50,000 claims received by Nationwide over the past three years. The company publishes the report to help educate agribusiness professionals about costly trends in the industry, said Carol Alvarez, vice president of claims for Nationwide.
USDA seeks comments on National Bioengineered Food Disclosure Standard proposal
The deadline to comment on a USDA proposed rule regarding labels on foods using ingredients from bioengineered sources is July 3. The proposal establishes a National Bioengineered Food Disclosure Standard, providing a uniform way to disclose information for consumers, seeking to avoid a patchwork system of state or private labels.
The proposed rule was previewed in the May 3 Federal Register. Comments may be submitted online through the Federal eRulemaking portal.
The head of the National Milk Producers Federation (NMPF) said the proposal leaves several key issues unresolved, but includes recommendations it previously forwarded to the USDA.
In comments that NMPF filed with USDA last year, NMPF said the new standard should focus on providing consumers with accurate information while discouraging misleading marketing tactics or meaningless absence claims, said NMPF President and CEO Jim Mulhern. NMPF has been an active participant in the Coalition for Safe Affordable Food, which supported the bioengineered food disclosure legislation passed by Congress in 2016.
Mulhern noted that USDA’s proposed rule adheres to Congress’ statutory determination that meat and milk derived from livestock consuming bioengineered feedstuffs are not subject to labeling because there is no difference in those products compared to those from animals that consumed nonbiotech feed.
Although the USDA regulation does not address whether or how food companies can use absence claims – which tout information about what supposedly is not in a product – NMPF said that the fact-based standard advanced by USDA should help reduce the confusing labeling claims too often seen in the marketplace. NMPF previously told USDA that too many food companies utilize “fearmongering” to vilify food biotechnology, as they seek to profit from the consumer confusion surrounding its use.
‘Choose PA Dairy’ campaign encourages consumers to buy local milk and dairy products
Pennsylvania Agriculture Secretary Russell Redding joined dairy farmers and industry advocates to kick off a campaign – “Choose PA Dairy: Goodness that Matters” – designed to help the state’s consumers find and buy locally produced milk.
Redding noted that there are two primary ways to find local milk: looking for the PA Preferred logo or the plant code 42 on the packaging. Both indicate that the milk was produced in Pennsylvania. Plant codes, which represent the state in which the milk was processed, are usually printed near the top of the container or on the lid.
“The dairy sector is the largest of Pennsylvania’s $135.7 billion agriculture industry,” Redding said. “The dairy industry contributes $14.7 billion annually to our economy and supports 52,000 jobs in the state, but numbers don’t tell the whole story,” Redding said. There’s a person on both sides of the equation – on one side, Pennsylvania’s 6,570 dairy farm families – our friends and neighbors who pour their lives and livelihoods into producing the highest-quality products available. And on the other side, we have consumers who want the very best for their families. When you buy local milk, you’re investing in your community, your family and Pennsylvania’s economy.”
Wisconsin producer-led conservation projects funded
Wisconsin’s latest state budget triples available funds for local watershed protection efforts led by the agricultural producers who live in them, according to Sheila Harsdorf, secretary of the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).
Producer-led watershed protection grants provide financial support to groups of farmers willing to lead conservation efforts tailored to their own watersheds. Project emphasis is on innovation and practices not already covered by other state and federal programs, and the intent is that participating farmers will reach out to other farmers to help them adopt conservation practices. Groups may receive up to $40,000 a year.
The program previously received $250,000 a year for grants, with funds coming from the DATCP’s overall soil and water allocation. In April, total funding was increased to $750,000 per year during the 2017-19 biennium. As a result, two more farmer-led groups will receive funding for soil and water conservation efforts, and 17 groups will receive additional funding as a result of a budget increase.
The application period for 2019 funding opens in July.
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