Here is the news affecting dairy producers' bottom lines as we begin December 2024.
- Farmer sentiment strong following U.S. election
- GDT index increases again
- NMPF calls for dairy producers to support the Innovative FEED Act
Farmer sentiment strong following U.S. election
Farmer sentiment climbed 30 points in November to 145. This improvement pushed the barometer to its highest level since May 2021, with expectations for the future also reaching their highest level since April 2021, according to the latest Purdue University/CME Group Ag Economy Barometer.
“Some of the reasons behind the improvement in farmer sentiment include expectations for a future regulatory and tax environment for the agricultural sector that is more favorable than expected prior to the November elections,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Following the election, a majority of producers said they expect a less restrictive environmental regulatory environment for agriculture. Producers are expecting a more favorable tax regime, but also say they think a “trade war” is either likely or very likely.
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 Dec. 3, reflect ag producer outlooks as of Nov. 11-15.
GDT index increases again
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is up 1.2% in the auction held Dec. 3. This is the third consecutive event to post an increase.
Compared to the previous auction, prices for individual product categories were mostly lower. Lactose and whole milk powder had large gains at 7.7% and 4.1%, respectively, to carry the index. However the remaining products traded lower. Butter was down 5.2%, mozzarella was down 4.5%, cheddar cheese was down 3.2%, and buttermilk powder was down 2.6%. Skim milk powder and anhydrous milkfat were lower by 1% or less.
The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).
The next GDT auction is Dec. 17.
NMPF calls for dairy producers to support the Innovative FEED Act
Dairy advocates are at a crucial juncture in efforts to modernize rules surrounding animal feed additive reviews and approvals. The Innovative Feed Enhancement and Economic Development (FEED) Act (H.R. 6687, S.1842), which has support from both parties in the House and Senate, presents a pivotal opportunity for U.S. dairy farmers to enhance their global competitiveness, maintain profitability and reduce environmental impacts.
Reducing greenhouse gas (GHG) emissions through voluntary, producer-led initiatives remains a top priority for the U.S. dairy community. Feed additives that reduce enteric methane emissions present a promising opportunity to meet 2050 sustainability goals. The lack of FDA-approved feed additives in this area, due to the result of unnecessary regulatory hurdles, hinders progress. Streamlining approvals via the Innovative FEED Act would empower dairy farmers to access tools that can support them as they enhance productivity and sustainability on their farms.
The National Milk Producers Federation (NMPF) invites dairy farms to join its call-to-action campaign to urge their respective member of the U.S. House of Representatives to advocate for including the Innovative FEED Act in year-end legislation.
