World Dairy Diary

House Ag Hearing on Biotech Focuses on Alfalfa

The future of biotech alfalfa was in the spotlight as the U.S. House Agriculture Committee held a hearing Thursday to review the biotechnology product regulatory approval process.

Prior to the hearing, committee chairman Frank Lucas (R-OK) joined Senate Republican colleagues in sending a letter to Agriculture Secretary Tom Vilsack requesting that the department “return to a science based regulatory system for agriculture biotechnology and to deregulate without conditions genetically engineered (GE) alfalfa.” The letter noted that while science strongly supports the safety of GE alfalfa, USDA’s proposal politicizes the regulatory process and could set a harmful precedent for open pollinated crops in the future.

Vilsack was the main witness at the hearing and in his testimony he pointed out that the legal challenges related to GE alfalfa have taken years. “APHIS made its initial decision to deregulate GE alfalfa in June 2005. Yet here we are nearly six years later with the process not yet concluded,” said Vilsack. “The situation needs to be resolved. The legal challenges, and the resulting effects, have created uncertainty for all growers. Growers need to order seed and make planting decisions, but have difficulty when the legal challenges cause so much uncertainty. There are companies and researchers who have devoted significant resources to developing safe products that can help us meet our food security needs, but find themselves fighting in the courts, or waiting to see how a judge’s decision in a separate case will affect them.”

When asked about the issue during a press conference on another subject Thursday, Vilsack made several points. “Number one, we recognize our responsibilities under the plant protection act and we take them very seriously,” said Vilsack. “Number two, we understand that our decision needs to be done in a timely basis so that folks that are waiting to decide what to do and when to do it and how to do it will have enough time and enough direction to be able to do it. Number three, we recognize that any decision that is made has to be science based, that is what the law requires and that is what we will do.”

Listen to those comments from Vilsack here: Vilsack comments on GE Alfalfa

Vilsack also commented on the issue during his address at the recent American Farm Bureau Federation annual meeting. “What we’re trying to do is to stimulate a conversation and to ensure that every person, every farmer, every rancher, every grower has the capacity to do on their land what they wish to do,” he said. “If you want to grow GM crops you ought to be able to do that, if you want to grow identity-preserved conventional you ought to be able to do that, if you want to be an organic farmer you ought to be able to do that.”

Listen to Vilsack’s comments on the alfalfa issue from AFBF here: Vilsack at AFBF

USDA Awards Bioenergy Producer Payments to Dairies

More than a dozen dairy operations are getting bioenergy producer payments from USDA as incentives to produce advanced biofuels. Under the Farm Bill, the Bioenergy Program for Advanced Biofuels authorizes payments to eligible producers to expand production and use of advanced biofuels.

Agriculture Secretary Tom Vilsack announced the payments Thursday for over 120 operations in 33 states to support the production and usage of advanced biofuels. Payments, which range from less than $500 to over $1 million, are based on the amount of advanced biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

“This funding will help the nation’s advanced biofuel industry produce more fuel from sustainable rural resources, and in doing so create jobs, a new revenue stream for agriculture producers and stimulate rural economies across the nation,” said Vilsack.

Among the dairy operations receiving payments are: Scenic View Dairy in Michigan; West River Dairy in Minnesota; Bridgewater Dairy in Ohio; Berkshire Cow Power and Green Mountain Dairy in Vermont; Holsum Dairies, Green Valley Dairy, Pagel’s Ponderosa Dairy, Quantum Dairy, Clover Hill Dairy, and Grotegut Dairy Farm in Wisconsin.

Cooperative Message Delivered to Ag Secretary

Agriculture Secretary Tom Vilsack recently got a pile of postcards from Dairy Farmers of America members stressing the importance of cooperatives.

Delivery of the cooperative message was made by DFA members Lee Ramsburg of Gettysburg, Pa., (left) and David Crowl of Street, Md., (center) following the last in the series of workshops conducted this year by the USDA and the Department of Justice on competition in agriculture. That final workshop was held December 8 in Washington, DC.

The two DFA representatives delivered thousands of postcards signed by DFA members expressing support for their cooperative and the Capper-Volstead Act, also known as the Co-operative Marketing Associations Act of 1922 which allowed exemptions from antitrust laws for agricultural cooperatives. They also presented Vilsack with a petition signed by DFA employees describing the importance of cooperatives to the dairy industry.

USDA Observes Dairy Greenhouse Gas Agreement Anniversary

Agriculture Secretary Tom Vilsack today commemorated the one year anniversary of the agreement to help U.S. dairy producers cut greenhouse gas emissions that was signed on this date during climate change talks in Copenhagen, Denmark last year.

“The partnership between USDA and U.S. dairy producers to increase sustainability has achieved remarkable results over the past year,” said Vilsack. “USDA has awarded funding to establish 30 anaerobic digesters, and we are assisting farmers with digester feasibility studies and energy audits to help producers reduce greenhouse gas emissions, while increasing on-farm income. The partnership is a demonstration of the Obama Administration’s commitment to producing renewable energy, providing new economic opportunities to farmers, and preserving natural resources.”

On December 15, 2009, USDA and the Innovation Center for U.S. Dairy signed a sustainability-focused Memorandum of Understanding (MOU) to work in concert to reduce greenhouse gas emissions from dairy farms by 25 percent by 2020. Since the signing, USDA and the Center have partnered to increase the number of operating anaerobic digesters on farms, and encouraged research and development of new technologies to help dairies reduce greenhouse gas emissions.

Read more from USDA here.

Vilsack Names NDB Board Members

Congratulations to the dairy farmers named to the National Dairy Promotion and Research Board. All appointees will serve three-year terms.

“These appointees represent a diverse cross section of the dairy industry and I am confident that they will serve dairy producers throughout the United States well,” said Agriculture Secretary Thomas J. Vilsack.

The board is authorized by the Dairy Production Stabilization Act of 1983. The Agriculture Secretary selects the appointees from nominations by dairy producers and farm organizations.

Source: USDA

October Milk Production Up

The latest report from USDA finds milk production was up last month.

Milk production in the 23 major States during October totaled 14.8 billion pounds, up 3.3 percent from October 2009 and higher than the previous month as well. The September production numbers were revised by six million pounds to 14.5 billion pounds. Production per cow in the 23 major States averaged 1,767 pounds for October, 47 pounds above October 2009. The number of milk cows on farms last month was 8.37 million head – 52,000 head more than October 2009, but unchanged from September 2010.

A slow down in the herd expansion caused USDA to back off some on earlier forecasts for higher production next year. USDA Outlook Board Chairman Gerry Bange says they now expect production to increase about 1.4 percent next year, down just a fraction from the previous forecast. “The reason we came off on that is we’re seeing a slower rate of growth in cow numbers at the moment,” said Bangee. “As a matter of fact, it looks like we might actually see lower cow numbers” by the end of 2011.

The forecast also slightly lowered the all milk price is forecast to average $16.30 to $16.40 per cwt for 2010 and $15.95 to $16.85 per cwt for 2011. “Non-fat dry milk prices have been running a little higher but butter prices have been running a little lower,” said Bange.

Recommendations Expected from Dairy Advisory Committee

Agriculture Secretary Tom Vilsack says USDA’s Dairy Industry Advisory Committee is expected to make recommendations soon on how to address the issues of milk price volatility and dairy farmer profitability.

“They are on track to make some preliminary recommendations in December or January,” said Vilsack during a press conference with farm broadcasters last week. “Obviously dairy prices have improved a little bit over where they were last year. I hope that doesn’t take away from the urgency of doing something because we can just as easily dip back into historic low prices as we did in 2009.”

Vilsack says the recommendations from the committee could take many forms. “It may be something that’s done through a regulatory process, or it may be something that requires legislation, or it may be something that’s appropriate to fold into a 2012 Farm Bill discussion,” he said.

Listen to or download Vilsack’s comments here: Vilsack Dairy

USDA Issues Final Dairy Income Loss Payments

Agriculture Secretary Tom Vilsack today announced that final Phase III payments under the Dairy Economic Loss Assistance Payment (DELAP) program began the week of Oct. 12, 2010. The program is funded by $290 million from the 2010 Agricultural Appropriations Bill to provide loss assistance payments to eligible dairy producers.

Of the $290 million budgeted for DELAP, a total of $273 million was dispersed to eligible dairy producers under DELAP Phase I and Phase II. The remaining $17 million minus a reserve established by FSA will be dispersed during Phase III.

Source: USDA News Release

Vermont Spotlights Cow Power

A Vermont dairy farm that turns cow manure into electricity held an open house Friday to spotlight “Cow Power.”

Among those who visited Chaput Family Farms in North Troy was a team of USDA officials. The project was funded with assistance from USDA.

“Anaerobic digesters like the one here at Chaput Family Farms will benefit our environment as well as America’s dairy farmers, who can profit from the production and sale of this renewable energy source,” said Natural Resources Conservation Service (NRCS) State Conservationist Vicky Drew. “In addition to reducing greenhouse gas emissions through the collection of methane, the digester will also reduce energy needed to produce and haul bedding to the farm by recycling the manure onsite into a dry bedding material for the cows, creating a closed-loop system.”

The farm will produce all of its on-farm electricity, heat, hot water and bedding for the cows. It will sell the excess power to the local utility. The excess bedding will be sold to local farms.

Read more from USDA.

More Dairy Advisory Meetings Scheduled

USDA officials have announced the third and fourth meetings of the Dairy Industry Advisory Committee to be held at USDA Headquarters in Washington, D.C. The purpose of the meetings is to discuss farm milk price volatility and dairy farmer profitability, and to review various industry proposals and analysis, allowing comments from the public.

The meetings are scheduled for Sept. 23 and 24 and Oct. 12 and 13. The September meetings and the meeting on Oct. 12 will take place at the Jamie L. Whitten Building in the Williamsburg Room (rooms 104-A and 107A). The meeting on Sept. 23 will begin at 8:30 a.m., and on Sept. 24 the meeting will begin at 10:30 a.m. The October 13 meeting will be held in the USDA South Building, Room 3074, 14 Street, SW, and Independence Avenue, Washington, DC. All meetings are open to the public.

To submit written comments for consideration by the committee or to find out more, visit the committee website at www.fsa.usda.gov/diac. Notice of the meeting was published in the Sept. 3 Federal Register.

Milk Production and Herd Size Expanding

U.S. dairy operators are expanding herds again and that will mean more production next year.

The latest USDA milk report shows July output 3% ahead of July a year ago, at 15.3 billion pounds. Production per cow in the 23 major states averaged 1,830 pounds for July, 59 pounds above July 2009.

The total herd size is still smaller than last year, but probably not for much longer. “The fact of the matter is that for about the past six months or so we’ve been seeing cow numbers actually increase in the U.S.,” said USDA Outlook Board chairman Gerry Bange. The number of milk cows on farms in the 23 major States was 8.37 million head, 26,000 head less than July 2009, but 19,000 head more than June 2010.

Prices are also up, coming back faster and farther than expected. But, Bange thinks the all milk price next year will probably be held in check by production that could increase by one and half percent from this year. So, the forecast average price is now 16.05 per hundredweight, down 35 cents from the previous forecast, which Bange says “reflects the fact that we’re seeing substantially more milk production and anticipating more than we did a month ago.” The forecast for next year is about five cents/cwt higher than this year’s average.

NMPF Gets Funding for Producer Education from NRCS

USDA’s Natural Resources Conservation Service (NRCS) has awarded the National Milk Producers Federation (NMPF) matching funds of $25,000 to inform and educate producers about revised regulations for oil storage and pending regulations for milk storage containers.

The funding will be used to help dairy producers understand the Environmental Protection Agency’s Spill Prevention, Control, and Countermeasure (SPCC) regulation, including development of a self-certification template. NMPF is planning to conduct a series of webinars later this year to train dairy producers in the use of the self-certification template. Additionally, NRCS will work with NMPF to evaluate how NRCS can most effectively provide technical assistance to dairy producers to comply with the SPCC regulations.

“Dairy farmers are excellent stewards of our natural resources,” said Jamie Jonker, NMPF Vice President Scientific and Regulatory Affairs. “The USDA grant and NRCS technical assistance will provide dairy producers with valuable tools to successfully implement SPCC plans on their farms and continue that stewardship.”

The goal of the SPCC program is to prevent oil spills into waters of the United States and adjoining shorelines. A key element of the program calls for farmers and other facilities to have an oil spill prevention plan, called an SPCC plan. The SPCC plans are required for farms which have an aggregate storage capacity of oil products of 1320 gallons, or more, for every storage container larger than 55 gallons. A farm with less than 10,000 gallons of total storage capacity and no single storage greater than 5,000 gallons can self-certify its SPCC plan. Farms that do not meet this exemption must have a plan certified by a professional engineer. In a letter to NMPF dated June 9th, the EPA committed to finalizing the SPCC exemption for bulk milk storage “as expeditiously as possible…to have that process completed by early 2011.” In addition, EPA will be extending the compliance deadline for the revised regulation.

(Source: NMPF news release)

Milking Parlor: USDA & DOJ Work on Price Concerns

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No new news to dairy producers across the country: the industry is being hit hard by historically low prices. In this edition of the Milking Parlor, we listen in to part of the news conference Secretary of Ag Tom Vilsack and Assistant Attorney General Christine Varney held during a recent joint USDA-Department of Justice hearing at the University of Wisconsin-Madison.

Vilsack pointed out that, in the last 10 years, the dairy industry has gone from 111,000 dairy farms to fewer than 65,000… and it’s not because producers got more efficient. He wants to get to the bottom of what is devastating the dairy industry. Varney says they’re looking at what role the markets, such as the Chicago Mercantile Exchange, are playing in the price declines. But she’s not prejudging at this point and wants the hearings to run their course and show what the problem really could be. Vilsack added that, despite some reports, they don’t have a hidden agenda of reformulating the law regarding cooperatives… they just want to make sure producers are treated fairly, and rural America again becomes a great place where people want to live and work.

To subscribe to the Milking Parlor podcast, click here. Listen to or download this episode in the player below.

USDA and DOJ Announce Dairy Workshop Details

The U.S. Department of Agriculture and the Department of Justice today announced additional details regarding the June 25 public workshop in Madison, Wis., to examine competition and regulatory issues in the dairy industry. The workshop will be held in the Union Theater at the University of Wisconsin in Madison.

This is the third in a series of five joint public workshops. The first workshop was held in March in Ankeny, Iowa, with a focus on row crops and hogs. The second workshop focused on issues in the poultry industry and was held in Normal, Ala., last month.

Agriculture Secretary Tom Vilsack and U.S. Attorney General Eric Holder, and Assistant Attorney General for the Justice Department’s Antitrust Division Christine Varney will participate in a roundtable discussion to open the Wisconsin workshop. Senators Herb Kohl and Russell Feingold, Representatives Ron Kind, Steve Kagen and Tammy Baldwin, Governor Jim Doyle, and Wisconsin Agriculture Secretary Rod Nilsestuen have tentatively accepted invitations to join this roundtable discussion. Invitations have been extended to Representatives Thomas Petri and David Obey. The remaining panels will feature farmers, processors, academics and other dairy industry stakeholders. Additional details on the schedule and panelists will be provided at a later date.

Dairy Advisory Committee Meets at USDA

The first meeting of the new Dairy Industry Advisory Committee started Tuesday at USDA headquarters in Washington, D.C. and heard strong words from Secretary of Agriculture Tom Vilsack.

“At some point in time, this industry has got to get control of itself,” Vilsack said. “”We can’t continue to do this bandage approach where we buy a little bit or we increase the price a little bit or we come up with additional resources. In a time of difficulties relative to the deficit it’s just not that easy to raise the price support level, because we need an offset, which means some other aspect of agriculture could potentially suffer.”

Vilsack says he wants recommendations on what USDA should do by year’s end, whether it’s regulation or legislation or a combination of both, because the dairy market situation has become increasingly unstable. “The bandwidth, if you will, between good times and bad times, which used to be relatively stable, has over the course of the last several years become quite dramatic,” he said. “The dips are very significant, the increases are not as high and there’s not as much time for operators to recover and the result is it’s become harder and harder for operators to stay in business.”

The Dairy Industry Advisory Committee was chartered to review farm milk price volatility and dairy farmer profitability. The 17 member committee was appointed in January and represents all aspects of the industry. They will be meeting in Washington through Thursday.

USDA Appoints Dairy Board Members

Agriculture Secretary Tom Vilsack today announced the appointment of 12 members to the National Dairy Promotion and Research Board. All appointees will serve 3-year terms beginning immediately.

Newly appointed to the board are: George E. Marsh, Oregon (Region 1); Ray S. Prock, California (Region 2); Arlene J. Vander Eyk, California (Region 2); Brian W. Esplin, Idaho (Region 3); Neil A. Hoff, Texas (Region 4); Paul A. Fritsche, Minnesota (Region 5); Patricia M. Boettcher, Wisconsin (Region 6); Mark E. Erdman, Illinois (Region7); Susan D. K. Troyer, Indiana (Region 9); and Ronald R. McCormick, New York (Region 12). Reappointed to serve second terms were Randy G. Roecker, Wisconsin (Region 6) and Rita P. Kennedy, Pennsylvania (Region 11).

The 36-member board is authorized by the Dairy Production Stabilization Act of 1983. The Secretary selected the appointees from nominations submitted by eligible producer organizations, general farm organizations, and qualified State or regional dairy products promotion, research or nutrition education programs.

Milking Parlor Podcast: New Rules for Organic Pastures

The USDA has issued the final rule on organic access to pasture. This rule amends the National Organic Program (NOP) regulations to clarify the use of pasture in raising organic ruminants.

USDA officials say the final rule provides certainty to consumers that organic livestock production is a pasture based system in which animals are actively grazing pasture during the grazing season. The majority of organic dairy and ruminant livestock producers are already grazing animals and maintaining pastures that meet the requirements of this rule. These standards contain clear requirements that will provide greater assurance that all producers are being held to the same standards.

This episode of the Milking Parlor podcast features Deputy Secretary of Agriculture Kathleen Merrigan, laying out out the terms regarding the final rules and telling how this underlines the ag department’s commitment to organic agriculture.

To subscribe to the Milking Parlor podcast, click here. Listen to or download this episode in the player below.

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USDA Ends National Animal ID System

USDA is abandoning the National Animal Identification System (NAIS) and changing strategy to a state-based system.

“After concluding our listening tour on the National Animal Identification System in 15 cities across the country, receiving thousands of comments from the public and input from States, Tribal Nations, industry groups, and representatives for small and organic farmers, it is apparent that a new strategy for animal disease traceability is needed,” said Agriculture Secretary Tom Vilsack. “I’ve decided to revise the prior policy and offer a new approach to animal disease traceability with changes that respond directly to the feedback we heard.”

Under the framework, announced today at the National Association of State Departments of Agriculture (NASDA) Mid-Year meeting, USDA’s efforts will:
• Only apply to animals moved in interstate commerce;
• Be administered by the States and Tribal Nations to provide more flexibility;
• Encourage the use of lower-cost technology; and
• Be implemented transparently through federal regulations and the full rulemaking process.

Read more from USDA here.

USDA Implements Program to Help Dairy Producers

Agriculture Secretary Tom Vilsack has announced the implementation of the new Dairy Economic Loss Assistance Payment (DELAP) program. The 2010 Agricultural Appropriations Bill authorized $290 million for loss assistance payments to eligible dairy producers.

“Through this program, eligible dairy producers will receive economic assistance that will help stabilize their operations during these tough economic times,” said Vilsack. “I have personally heard from hundreds of struggling dairy farmers from all across our country who have been hit hard by declining prices over the past year, and now, we’ll be able to offer them help.”

Eligible producers will receive a one-time direct payment based on the amount of milk both produced and commercially marketed by their operation during the months of February through July 2009. Production information from these months will be used to estimate a full year’s production for an operation to calculate the payments, using a 6-million pound per dairy operation limit.

Read more details from USDA here.

Dairy’s Day in Copenhagen

Dairy was in the spotlight today in Copenhagen at the Climate Change Summit when U.S. Agriculture Secretary Tom Vilsack announced an agreement with U.S. dairy producers to accelerate adoption of innovative manure to energy projects on American dairy farms.

“This historic agreement, the first of its kind, will help us achieve the ambitious goal of drastically reducing greenhouse gas emissions while benefiting dairy farmers,” Vilsack said from Copenhagen. “Use of manure to electricity technology is a win for everyone because it provides an untapped source of income for famers, provides a source of renewable electricity, reduces our dependence on foreign fossil fuels, and provides a wealth of additional environmental benefits.”

The agreement was made between USDA and Dairy Management Inc.’s Innovation Center for U.S. Dairy with the goal of reaching a 25 percent reduction in greenhouse gas emissions by the year 2020.

DMI CEO Tom Gallagher says memorandum came about because of the commitment of U.S. dairy farmers and the dairy industry to a sustainable future that includes both environmental and economic viability. “Sustainability goes hand in hand with our heritage of taking care of the land and natural resources while producing nutritious products that consumers want,” said Gallagher.

Under the agreement, USDA intends to increase the number of anaerobic digesters supported by USDA programs. Beyond promoting the digesters, the agreement will encourage research, and development of new technologies to help dairies reduce greenhouse gas emissions. Anaerobic digester technology is a proven method of converting waste products, such as manure, into electricity. The technology utilizes generators that are fueled by methane captured from the animal manure. Currently, only about 2 percent of U.S. dairies that are candidates for a profitable digester are utilizing the technology. Dairy operations with anaerobic digesters routinely generate enough electricity to power 200 homes.