Digest Highlights: Proposed Indiana dairy doesn’t violate religious rights. Agency to decide California milk price hike hearing request. Midwest co-op gets a new general manager. Find a summary of this and other news here.
Minnesota dairy farmers join Super Bowl spotlight
More than 50 Minnesota dairy farmers are serving as dairy ambassadors as Super Bowl LII descends on Minneapolis, Minnesota. They are participating in this year’s Super Bowl Experience, Jan. 27 through Feb. 3, at the Minneapolis Convention Center.
The Super Bowl is providing a once-in-a-lifetime opportunity for dairy farmers to share their stories with thousands of visitors. Coordinated by the checkoff-funded Midwest Dairy Association, farmer activities include participation in a Fuel Up to Play 60 booth in the event’s Kids’ Zone. They’ll also assist in a virtual reality game where players will get a first-hand look at a dairy farm modeled after the Heintz Badger Valley Farm in Caledonia, Minnesota.
In addition to the Super Bowl Experience, dairy farmers will be involved in other events during the week leading up to Super Bowl Sunday, including the Minnesota Super Bowl Host Committee Tailgate Party on Jan. 31 and the Fuel Up! Innovation Challenge on Feb. 3.
Created in partnership by the National Football League and National Dairy Council, in collaboration with the USDA, Fuel Up to Play 60 encourages students to eat healthy and get active for 60 minutes a day. The nation’s largest in-school wellness program, it has been implemented in more than 73,000 schools nationwide.
Super Bowl LII, featuring the New England Patriots and Philadelphia Eagles, is Feb. 4.
Court: New dairy doesn’t violate religious rights
The Indiana Court of Appeals upheld a decision to allow construction of a new dairy within one-half mile from a church camp in rural Rush County, rejecting arguments made by the camp that the dairy's operation would violate their religious rights.
This case (House of Prayer Ministries Inc. v. Rush County BZA and Milco Dairy Farm LLC) involved two core rights: the right to use farmland for agricultural purposes and the freedom to exercise religion.
In its lawsuit, the camp argued the new dairy would violate its rights under the federal Religious Land Use and Institutionalized Persons Act (RLUIPA), Indiana’s Religious Freedom Restoration Act (RFRA) and the U.S. Constitution.
The Court of Appeals ultimately held that, at least in this instance, the right to milk cows does not infringe on the right to attend a religious camp, according to Brianna Schroeder, an attorney with Janzen Ag Law.
California milk price hike hearing request answer expected soon
The California Department of Food and Agriculture (CDFA) will announce a decision by Feb. 2 on whether to hold an emergency hearing to consider increases in minimum milk prices paid to the state’s dairy farmers.
The California Dairy Campaign (CDC) and Western United Dairymen (WUD) petitioned CDFA, seeking the hearing. (Read California dairy groups request emergency hearing for milk price increases)
The Jan. 18 request seeks price increases for the 12-month period of April 1, 2018, through March 31, 2019. Specifically, the organizations proposed a 60-cent-per-hundredweight (cwt) increase on Class 1, 2 and 3 milk; a 10-cent-per-cwt increase on Class 4a price; and a 40-cent-per-cwt increase on Class 4b.
About 15 dairy farmers had submitted comments supporting the petition.
Rachel Kaldor, executive director of the Dairy Institute of California, said the state’s dairy processors did not have margins to absorb the price increases and urged CDFA Secretary Karen Ross to deny the hearing request. Michael Shotts and Scott Hofferber, president and chief financial officer of Farmdale Creamery, respectively, said California dairy processors were suffering economically from state dairy policies related to make allowances and whey factors, and also asked that the hearing request be denied.
All correspondence can be viewed on CDFA’s website.
Lyon new FarmFirst Dairy GM
FarmFirst Dairy Cooperative named Jeff Lyon as general manager, effective Feb. 1. He succeeds David Cooper, who resigned on Dec. 31, 2017.
Most recently, Lyon served as deputy secretary at the Wisconsin Department of Agriculture, Trade and Consumer Protection. Prior to that, he worked for 22 years within governmental relations for the Wisconsin Farm Bureau Federation, focusing on national affairs and state legislative and regulatory issues.
Cooper served the cooperative and its members since 2006, originally as general manager of Family Dairies USA, then as assistant general manager for FarmFirst Dairy Cooperative during 2013, and finally, the past four years as the general manager for FarmFirst Dairy Cooperative.
Based in Madison, Wisconsin, FarmFirst Dairy Cooperative was established in 2013 and represents farms in Wisconsin, Minnesota, South Dakota, Michigan, Iowa, Illinois and Indiana through policy bargaining, dairy marketing services, laboratory testing opportunities and industry promotion.
The co-op will hold its annual member meeting on Feb. 10 in Oshkosh, Wisconsin.
FarmFirst opens Feb. 10 workshop series to all producers
The Young Cooperators of FarmFirst Dairy Cooperative invite all dairy producers to attend a workshop series, Feb. 10, at the Best Western Premier Waterfront Hotel and Convention Center in Oshkosh, Wisconsin. This year’s workshop series includes:
• Reflections on Animal Welfare, Customer Expectations and Building Added Value in Dairy, presented by Terry Homan, DVM and founder of Red Barn Family Farms, at 8:30 a.m.
• Milk Quality 101: Tests & Quality Know-How to Save Time & Money, presented by Fox Valley Quality Control Lab staff, including Cheryl Harrmann, Toni Buhrow and Cheryl Zablocki-Wagner, at 9:30 a.m.
Workshop attendees will then have the opportunity to join the delegate session of FarmFirst’s annual meeting to also listen to:
• A View from the Capitol, presented by Shawna Morris, vice president of trade policy with the National Milk Producers Federation, at 10:45 a.m.
• Industry Expert Panel: Perspective Across the Industry, featuring Sam Miller, BMO Harris Bank; Dan Smith, Wisconsin Department of Agriculture, Trade and Consumer Protection; Terry Homan, Red Barn Family Farms; Julie Cooper, Belgioioso Cheese; and Norbert Hardtke, Family Dairies USA, at 11:15 a.m.
Dairy farmers interested in attending should contact Julie Sweney at FarmFirst Dairy Cooperative by calling (608) 286-1909 before Tuesday, Feb. 7, 2018. Registration is required for lunch.
CoBank: Dairy faces challenges in 2018
Processing capacity and exports are critical elements to a dairy farmer financial recovery, according to agricultural industry analysts with CoBank’s Knowledge Exchange Division.
In an annual outlook report (The Year Ahead: Forces that will shape the U.S. rural economy in 2018), CoBank’s analysts said dairy producers are among the hardest hit in the latest ag commodity price down cycle. As a result, Chapter 12 bankruptcies, which last year reached the highest level since 2012, are expected to accelerate in 2018 in the absence of a major upward correction in prices.
Any further deterioration in farm prices, or a surprise acceleration in Federal Reserve tightening, would add a new level of risk to land values and farmer solvency in 2018.
Fortunately, the CoBank analysts said, the ag sector’s balance sheet is supported by farm asset values, primarily farm land, have remained firm despite persistently weak underlying commodity prices.
Animal protein and dairy prices could also improve modestly if forecasted production increases come up short or global demand growth outperforms.
Protein and dairy processors find themselves trying to keep up with the increasing supply, making significant capital investments. Price pressure will continue if dairy stays the course of production expansion. While 2017 offered some producers modest margins on a revenue-minus-feed cost basis, this simplified margin calculation fails to account for other rising costs such as labor and interest rates, the analysts warned.
A long-term driver for growth in all of animal agriculture is the ever-expanding global middle class, and no issue will be more critical to these industries in 2018 than trade, according to the CoBank report. Consumers’ desire and ability to trade up in food options, especially in Asia, will fuel higher output in the U.S. for years to come.
However, meat and dairy products are still considered luxury options in emerging markets, so export sales can be far more responsive to economic fluctuations than in the developed world.
CoBank is a $124 billion cooperative bank and a member of the Farm Credit System.
U.S. Supreme Court sends WOTUS challenges back to district court
In a unanimous decision, U.S. Supreme Count justices ruled legal challenges to the 2015 “Waters of the United States” (WOTUS) rule should be filed in the federal district courts rather than at the appellate level.
After the WOTUS rule was promulgated in November 2015, it was challenged in several federal district courts. Ultimately, the separate court actions were consolidated and transferred to the U.S. Court of Appeals for the 6th Circuit.
The federal government (under both President Obama and President Trump) took the position that the cases should be filed in appellate courts, arguing that this case was one of seven types of lawsuits identified in the Clean Water Act for which appellate courts had jurisdiction.
Where things get complicated now, is whether a current stay preventing the 2015 rule from going into effect will remain, since it was issued by the 6th Circuit Court of Appeals, according to Tiffany Dowell Lashmet, assistant professor and extension specialist with the Texas A&M AgriLife Extension Service.
Ellen Steen, general counsel of the American Farm Bureau Federation (AFBF), called the ruling positive, but said it adds short-term uncertainty and confusion.
The U.S. Environmental Protection Agency (EPA) has proposed additional regulations that would prevent the 2015 rule from going into effect for two years while the agency works on revising or replacing the regulations, but actions have not been finalized.
“AFBF is considering its options to avoid application of the 2015 rule while EPA moves forward with an appropriate long-term solution that provides clear rules and clean water without requiring a federal permit to plow a field,” she said.
DFA receives Dairy Forum ‘Processor of the Year’ award
Dairy Farmers of America (DFA) was awarded the International Dairy Foods Association (IDFA) Dairy Forum Processor of the Year Award.
DFA was recognized for its investments in the dairy processing industry, strategic partnerships, product innovation and commitment to sustainability. The award, sponsored by Dairy Foods magazine, was presented on Jan. 23 in Palm Desert, California.
Kathie Canning, editor-in-chief of Dairy Foods magazine, cited DFA’s new construction and expansion of dairy plants in Kansas, Michigan, New York, Missouri and Maryland. The cooperative was also instrumental in developing and expanding innovative products such as the Sport Shake Sportsman line of protein shakes, as well as focusing on new product formats for several of its legacy brands, such as Borden Cheese, Kemps and Keller’s Creamery Butter.
The cooperative also made strides in 2017 to achieve sustainability-minded improvements such as water usage reduction in its plants, as well as forming key partnerships to enhance sustainability practices on its members’ farms via anaerobic digestion and solar panel technologies.
Finally, DFA executives and board members were identified for leadership roles in organizations that promote the industry, including the IDFA, the National Milk Producers Federation’s board of directors and the U.S. Dairy Export Council, to name a few.
U.S. retail yogurt sales post 2 percent compound annual growth rate
U.S. yogurt industry retail sales were just shy of $9 billion in 2017, according to Packaged Facts’ “The Yogurt Market and Yogurt Innovation, 3rd Edition.” Retail sales of yogurt have increased at a compound annual growth rate (CAGR) of 2 percent between 2012 and 2017.
Sustained consumer interest in yogurt is forecast to continue sales growth. Packaged Facts predicts yogurt drinks will continue to grow in popularity, driving overall market gains.
Census of Agriculture response deadline is Feb. 5
The USDA’s National Agricultural Statistics Service (NASS) reminds farmers that the deadline for the 2017 Census of Agriculture is Feb. 5. Producers should respond online.
The Census of Agriculture is conducted just once every five years, and farmers are required by law to respond even if they are not currently farming. After the Feb. 5 deadline, NASS will begin following up with additional mailings, emails, phone calls and personal appointments.
Dairy groups support USDA proposal allowing more milk options in schools
In joint comments, the National Milk Producers Federation (NMPF) and IDFA supported a proposed rule granting schools more milk options in school feeding and a la carte programs.
Last summer, U.S. Ag Secretary Sonny Perdue announced USDA would reinstate low-fat flavored milk as an option in school feeding programs. (Read: Dairy getting upgrade in school meal programs)
USDA published an interim rule published on the Federal Register in November; the public comment period closed in late January.
If approved, it would become effective July 1, 2018, in time for school districts to solicit bids for low-fat flavored milk before the 2018-19 school year and give milk processors time to formulate and produce a low-fat flavored milk that meets the specifications of a school district.
USDA eliminated low-fat flavored milk as an option in the school meal and a la carte programs in 2012, resulting in students consuming 288 million fewer half pints of milk from 2012-15.
Emission reporting still up in the air
Dairy farmers are being urged to abstain from filing federal air emission reports as another deadline has come and gone.
Last November, a U.S. Court of Appeals for the District of Columbia granted an EPA motion for a stay of an earlier court ruling, pushing the reporting requirement under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) back at least 60 days. That order expired on Jan. 22. (Read: Livestock producers, EPA gain reprieve on emission reporting)
As the January deadline approached, EPA requested an additional 90-day stay, and the court did not issue an order mandating farmers to file reports.
Without the stay, farms would be required to provide for “continuous release” reports covering ammonia and hydrogen sulfide – emitted during decomposition of manure. Reportable quantities for ammonia and hydrogen sulfide were set at 100 pounds per day. However, confusion still remains about the proper way to measure emissions and about how exactly reporting will logistically be handled. 
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