In this week's news:

Lee karen
Karen Lee
Managing Editor / Progressive Dairy

Government announces nearly $200 million in funding to reduce impact, spread of H5N1

The USDA is utilizing $98 million of existing funds to reduce the impact of H5N1 on affected dairy premises and producers.

For producers of affected herds who facilitate participation of their workers in a workplace and farmworker study, the USDA will provide up to $2,000 per affected premises per month for producers who supply personal protective equipment (PPE) to employees and/or provide outerwear uniform laundering. Workers who participate in the study are also eligible for financial incentives to compensate them for their time.

Up to $1,500 is available per affected premises to support the development of biosecurity plans, as well as a $100 payment to producers who purchase and use an in-line sampler for their milk system.

For producers on affected premises that establish a system to heat-treat waste milk before disposal, the USDA will pay up to $2,000 per month.

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In addition, the USDA is offering to reimburse producers up to $10,000 for veterinarian costs associated with confirmed positive H5N1 premises and to offset shipping costs for influenza A testing at laboratories in the National Animal Health Laboratory Network (NAHLN).

This amounts up to $28,000 per premises to support increased biosecurity activities over the next 120 days.

The USDA is also taking steps to make funding available from the Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish Program (ELAP) to compensate eligible producers with positive herds who experience loss of milk production.

Details on how producers can access and apply for the financial tools are still forthcoming.

The U.S. Department of Health and Human Services (HHS) is also putting forth $101 million through the Centers for Disease Control and Prevention (CDC) and FDA to increase testing and laboratory screening and testing capacity, genomic sequencing and other interventions to protect the health and safety of dairy and other potentially impacted food items.

Dissolved dairy operations eligible to enroll in 2024 DMC

The Dairy Margin Coverage (DMC) rule has been amended to allow enrollment of dairy operations that dissolved in 2024 before or during the 2024 DMC coverage election period.

Because the dairy operations were not commercially marketing milk at the time of application, the dissolved dairy operations were not originally eligible for 2024 DMC.

With this amendment, dairy operations that dissolved on Jan. 1, 2024, through April 29, 2024, may now submit a CCC-801 contract from now through May 23, 2024.

Eligible operations should contact their local FSA office to set up their enrollment for the days the dairy operation marketed milk in 2024.

Farmer sentiment drops from weakened financial outlook

Concerns about their farms’ current financial situation and expectations for weak financial performance in the year ahead brought farmer sentiment to its lowest reading since June 2022, according to the latest Purdue University/CME Group Ag Economy Barometer.

“Farmers’ expectation that 2024 will be a difficult year was a big contributor to this month’s decline in farmer sentiment,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.

While fewer farmers expect interest rates to rise, they also do not expect to see an increase in farmland values this year.

Interest in using farmland for solar energy production and sequestering carbon appears continues to be on the rise, with 19% of respondents discussing solar energy leases, up from 12% in March.

The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released May 7, reflect ag producer outlooks as of April 8-12.

Cooperative, processor news

  • The Coca‑Cola Company and fairlife ceremonially broke ground on a new fairlife production facility in the town of Webster, New York. This $650 million investment will serve as fairlife’s flagship Northeast location and is expected to generate approximately 250 jobs in the area. The facility is anticipated to be operational in late 2025 and will take in 5 to 6 million pounds of milk per day from local dairy farmers.
  • Daisy Brand LLC plans to invest $626.5 million in a 750,000-square-foot facility in Boone, Iowa. Growing demand for the company’s popular sour cream and cottage cheese products created the need for an additional manufacturing facility, which is expected to create up to 255 new jobs for the region.
  • FarmFirst Dairy Cooperative announced Mick Homb as the newly appointed general manager. In his new role, Homb will assume leadership over the cooperative, spearheading the management of its divisions and programs while concurrently continuing his pivotal role in milk marketing for the Family Dairies USA division.