Digest highlights

Natzke dave
Dave Natzke
Editor / Progressive Dairy

AFBF urges FMMO hearing, and more

The American Farm Bureau Federation (AFBF) has urged the USDA to accept the National Milk Producers Federation (NMPF) petition for a comprehensive Federal Milk Marketing Order (FMMO) hearing.

In a letter sent to USDA’s Agricultural Marketing Service (AMS) in support of the petition, Zippy Duvall, AFBF president, also called on the USDA to go even further by asking for mandatory, audited surveys of dairy processors to be used when determining the manufacturing or “make” allowances factored into dairy pricing. The letter points out USDA’s authority to conduct a mandatory audit under the Agricultural Marketing Agreement Act.

The NMPF proposal was received by the USDA AMS on May 2, triggering a 30-day period in which the USDA can either deny, issue an action plan or request additional information. If initiated, the action plan will likely extend into late summer or early fall of 2024. NMPF’s 51-page request and proposal is posted on the USDA AMS website.

Read also: NMPF submits FMMO modernization plan to USDA

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If – and when – a hearing moves the proposal to a producer referendum, all dairy farmers who pool their milk in the FMMO system will be able to cast individual votes, according to NMPF. In past hearings, some cooperatives have elected to bloc vote for their membership on FMMO issues.

Coca-Cola plans fairlife plant in New York

The Coca-Cola Company will build a new $650 million fairlife production facility in Monroe County, New York. The company expects to break ground on the project in fall of 2023, with the facility slated to be operational by the fourth quarter of 2025. Expected milk utilization is estimated at 5 million pounds per day.

Founded in 2012, fairlife has designed a line of products that are made through an ultrafiltered milk process that removes the lactose and much of the sugar and leaves behind more of the protein and calcium. Coca-Cola has been a strategic partner to fairlife since it was launched in 2012 through the company’s ultimate acquisition of it in 2020.

New York’s Empire State Development (ESD) agency is providing up to $21 million in project assistance through the Excelsior Jobs Tax Credit Program in exchange for the job creation commitments. Monroe County is expected to apply to ESD for a $20 million capital grant to provide adequate power and other related infrastructure costs to service the site.

California dairy stands out in ability to reduce methane emissions

California’s dairy sector can reach climate neutrality in the coming years with aggressive methane mitigation, something few, if any, other sectors can achieve, according to a peer-reviewed paper recently published by CABI Biological Sciences.

Read: The path to climate neutrality for California dairies

In the paper, authors Conor McCabe, Hamed El-Mashad and Frank Mitloehner, with the Clarity and Leadership for Environmental Awareness and Research (CLEAR) Center at the University of California – Davis, argue that the relatively short-lived lifespan of methane (12 years) means it is broken down into carbon dioxide and water vapor. If methane emissions are constant, no additional warming is being added. If methane emissions can be reduced, more is taken out than is being emitted, that can offset past warming contributions.

Recent technologies, including feed additives, dairy digesters and alternative methods of manure management, are helping to reduce the dairy sector’s methane emissions in a much more sustainable way. 

“If the dairy sector can continue to decrease methane, it can reduce its warming contribution,” said Mitloehner, CLEAR Center director. “Other sectors of society can’t do that as easily, but dairy can because the main greenhouse gas it produces is methane. If we reduce that methane, not only can we reach climate neutrality, but we can also chip away at historical emissions, and the sector can become part of a climate solution.”

House Ag Committee establishes farm bill comment portal

The House Agriculture Committee launched an online portal to solicit 2023 Farm Bill feedback from House members, regardless of membership on the House Committee on Agriculture. The portal is open to member offices and receiving comments until June 9. Stakeholders and private citizens can also submit feedback.

Beef board reapportionment proposed

The USDA published a proposed rule to adjust membership on the Cattlemen’s Beef Promotion and Research Board to reflect shifts in cattle inventory levels. Written comments on proposal must be received by June 1.

Under the proposal, total board membership would decrease by two members, from 101 to 99, with domestic cattle producer representation lowered from 94 to 92 members. Idaho would gain one member, while Montana, Pennsylvania and Wisconsin would lose one member. The remaining seven members would represent importers.

The order provides for a review of geographic distribution of U.S. cattle inventories and the volume of imported cattle, beef and beef products at least every three years, but not more than every two years. The last board reapportionment was in 2020. 

A state or unit must have an inventory of 500,000 head of cattle to be represented on the board and is entitled to an additional member for each additional 1 million head of cattle.

Additionally, under the proposal, a technical amendment to the Beef Promotion and Research Order would correct the list of qualified state beef councils by removing the Maryland Beef Industry Council, who voted unanimously to dissolve their council last September.

DHS ends Form I-9 requirement flexibility

Although the impact on dairy producers and employees is likely limited, Form I-9 verification flexibility allowed during the COVID-19 pandemic will end on July 31.

The U. S. Immigration and Customs Enforcement (ICE) announced that employers must complete in-person physical document inspections by Aug. 30 for employees whose documents were inspected remotely during the pandemic.

The flexibilities, initially announced in March 2020 and updated in March 2021, allowed employers to remotely inspect employees’ Form I-9 identity and employment eligibility documentation.

The Department of Homeland Security (DHS) published a notice of proposed rulemaking for alternative procedures allowing remote document examination for Form I-9 last year. The DHS anticipates publishing a final rule in the Federal Register that will implement this proposal.

Coming up

Check the Progressive Dairy website for these updates:

  • The USDA releases its monthly World Ag Supply and Demand Estimates (WASDE) report, May 12. The report includes the agency’s forecast for U.S. milk production and prices as well as price projections for soybean meal, corn and beef. Progressive Dairy will summarize the report on May 12.
  • Administrators of the 11 FMMOs are releasing April 2023 prices and pooling data this week. Look for a Progressive Dairy summary of uniform prices, producer price differentials (PPDs) and pooling-depooling volumes on May 15.