Category Archives: Misc

Discussions begin on 2018 Farm Bill and Margin Protection Program

The National Milk Producers Federation (NMPF) was invited to testify to Congress in late July during a hearing on the 2018 Farm Bill.

NMPF said Congress must revise the dairy safety net program established in the 2014 Farm Bill to provide farmers with effective risk management protection that will increase participation in the program.

NMPF said that while the dairy Margin Protection Program (MPP) remains the right program for the dairy industry, “the changes Congress made to the MPP when writing the last Farm Bill rendered it ineffective when dairy farmers needed it the most.”

In calendar year 2015, dairy farmers paid more than $70 million into the MPP and received payments totaling just $730,000.

In 2016, those figures were $20 million and $13 million.

NMPF said farmers found that the program was not helpful during two years that were particularly detrimental to the dairy industry. As a result, many of them have become disenchanted with the program, and participation has dwindled.

In making the case for improving the MPP, NMPF detailed a list of proposed changes NMPF and its members had developed to improve it. The MPP is designed to help farmers insure against either low milk prices or high feed costs, but the determination of the feed price used in the margin calculation is problematic.

During the farm bill process, NMPF’s original proposed feed formula, though considered accurate, was cut by 10 percent to address other budget concerns. Based on the government profit made on the program, concerns about budget that led to the 10-percent cut were misplaced, NMPF explained.

NMPF said it is also important to expand dairy farmers’ access to additional risk management tools like the Livestock Gross Margin for Dairy Cattle (LGM) program and similar programs that could be offered by USDA.

“Making the [MPP] program more attractive for dairy farmers is vital to ensuring participation in the program, and the safety of America’s dairy industry.”

NMPF also touched on several other policy challenges affecting U.S. dairy farmers, including immigration and labor shortages, and the vitality of U.S. dairy trade as NAFTA renegotiations begin.

WSDF Board Update

Markus Rollinger has been elected to the Dairy Federation Board of Directors. He will fill the unexpired term that was vacated by Tom Devries, who served for many year on the Dairy Federation Board. The term expires at the end of 2018.

Ten Dairy Federation Board members are elected by district, with staggered 3-year terms. In this case, Rollinger joins Art Mensonides and Keith Golob to represent the greater Yakima area.

Other board members include Chris Sybrandy, Jon DeJong and Terry Lensen (NW Washington); Walt Abplanalp and Eric Johnson (SW Washington); and Ed Zurcher and Henry Benthem (Eastern Washington).

Two appointed board members represent Western Washington (Dwayne Faber) and Eastern Washington (Austin Allread).