2021 ACTIVITIES & ACCOMPLISHMENTS OF THE NATIONAL MILK PRODUCERS FEDERATION
ABOUT US Established in 1916 and based in Arlington, Virginia, the
NATIONAL MILK PRODUCERS FEDERATION carries out policies that advance the well-being of dairy producers and the cooperatives they own. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For over 100 years, NMPF has been one of the country’s most recognized and influential membership organizations. Advocating policies determined by its members, the positions expressed by NMPF are the result of grassroots work by dairy farmers and their cooperatives on national policy.
FROM OUR PRESIDENT & CEO The return to more normal times – and prospects for greater prosperity on dairy farms in 2022, as years of tireless effort bear fruit in the form of higher prices and better balance sheets – animates this year’s NMPF Activities & Accomplishments.
In these pages you will see a sampling of the work of the National Milk Producers Federation in the past year on behalf of America’s dairy farmers and the cooperatives they own. You will see how we’ve helped secure muchneeded federal disaster assistance and margin insurance that’s helped stabilize many dairies in these volatile times. You’ll see how our policy efforts have helped position our industry for a record year in exports, with promise for even greater growth ahead. You will see how we’ve fought – and won – battles for common-sense regulation of dairy farms. You’ll see how we’ve led the industry toward greater opportunities in sustainability while encouraging the continuous improvement that makes dairy a compelling choice for 21st century consumers. And you will see how we share dairy’s story with the nation and the world,
Jim Mulhern President & CEO
further cementing U.S. dairy farmers in their position as global leaders in providing nutrition and nourishment to all people, in all places, at all times.
Along with this review of the highlights of what NMPF has achieved, you’ll gain insight into some of the challenges that lie ahead. From the groundwork we’ve been laying for meaningful Federal Milk Marketing Order changes to assist producers in all regions, and of all sizes, to the policy path we’re creating for successful implementation of dairy’s Net Zero Initiative, this year’s annual report looks ahead. We are excited to relate to you how we bring progress to this ever-changing, always innovative industry. We present this report on the past year with pride, and with a promise of better years to come.
GOVERNMENT RELATIONS NMPF Tackles Covid Relief, Moves Policy Forward NMPF’s service in the past year toward dairy farmers and the cooperatives they own through improved federal policies has advanced in two main directions. While the COVID-19 pandemic continued to dominate the nation’s attention in 2021, the arrival of vaccines and a greater ability for citizens and the economy to withstand surges encouraged policymakers to look beyond it. NMPF policy efforts focused almost equally on implementing pandemic support for the dairy sector, such as dairy donation initiatives and direct producer support, and renewing progress in other key areas, including ag labor and sustainability.
KEY SUCCESSES Built bipartisan support for House passage of the Farm Workforce Modernization Act and bipartisan Senate negotiations
$350 MILLION
Won $350 million in payments to dairy farmers for Class I mover losses and assembled bipartisan Congressional backing for additional reimbursements
$400 MILLION
Led a successful effort to implement the new $400 million Dairy Donation Program for cooperatives to provide dairy products to foodinsecure households
Successfully preserved stepped-up basis in the tax code, heading off higher taxes when farms are passed down to heirs Obtained conservation funding to meet dairy’s needs, create revenue opportunities and support the Net Zero Initiative in pending budget legislation
Pandemic Resources Delivered
Ag Labor Efforts Advance
Picking up where Congress left off in 2020, NMPF worked closely with new Agriculture Secretary Tom Vilsack and his team on multiple pandemic response programs bolstering the dairy sector. NMPF first worked with USDA to make the Dairy Donation Program a success. Congress provided $400 million for this program to facilitate partnerships between dairy organizations and distributors such as food banks to donate dairy products to food-insecure households. Congressional support, strengthened through NMPF advocacy, ensured the program will reimburse dairy organizations for the full value of the raw milk needed to make the donated products, a major improvement over previous programs. NMPF also worked with USDA to secure reimbursement for processing and transportation costs and partnered with Feeding America, the nation’s largest food-bank network, to make this new program a blueprint for future joint successes.
NMPF advanced agricultural labor reform in 2021. NMPF in March again built bipartisan support for House introduction and passage of the Farm Workforce Modernization Act (FWMA) to set the stage for Senate efforts being led by Sens. Mike Crapo (R-ID) and Michael Bennet (D-CO).
NMPF in 2021 also worked with USDA to implement another congressionally directed program, Supplemental Dairy Margin Coverage (SDMC). Implemented in December, the program provides additional payments to farmers whose Dairy Margin Coverage production history is below five million pounds but has increased since 2014. NMPF also successfully convinced USDA to enhance the DMC feed-cost formula to fully reflect the cost of highquality alfalfa hay. These actions will increase the dairy baseline for the next farm bill, ensuring more federal dollars will be available for the dairy safety net. Finally, in response to NMPF’s advocacy to recoup farmer losses caused by pandemic-related market disruptions, in August USDA announced the Pandemic Market Volatility Assistance Program to provide $350 million to partially reimburse producers for these unanticipated losses. The program is an initial step in helping producers recover roughly $750 million in Class I skim revenue lost from July through December 2020 due to the recently modified Class I formula and the structure of USDA’s 2020 dairy purchases. However, the program’s five-million-pound limitation will prevent many family dairy farmers from being reimbursed for more than a minimal portion of their actual losses. NMPF is working with Congress to provide additional funding to close the gap and help all producers recover their losses equitably.
NMPF’s work gained momentum through the summer. A Senate Judiciary Committee hearing in July on the significance of immigrant farmworkers featured a former Illinois dairy farmer and other producers, farmworker representatives, and Secretary Vilsack testifying to the crucial need for ag labor reform. And importantly, NMPF met with U.S. Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) officials to express strong concern with a new wave of workplace audits and ICE raids impacting dairy farms. DHS issued a directive shortly thereafter ending worksite mass raids.
USDA Secretary Tom Vilsack and Rep. Antonio Delgado (D-NY) hosted an ag labor roundtable discussion on July 15 in Cobleskill, NY.
Net Zero Gains Policy Support A late-year federal focus on the Biden Administration’s Build Back Better reconciliation measure provided NMPF an opportunity to advance the dairy industry’s Net Zero Initiative to become greenhouse gas neutral or better by 2050 and improve water quality while optimizing use. After leading a dozen organizations that urged Congress to bolster conservation programs to support climatesmart practices, NMPF worked with Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) to secure new funding in Build Back Better to improve how such programs could support dairy farmers. The package also includes part of the NMPF-backed Agriculture Environmental Stewardship Act to create an investment tax credit to help cover the upfront capital costs of methane digesters. NMPF also won language and funding in pending appropriations legislation to nudge FDA to speed up its approval of innovative animal feed additives that can significantly reduce enteric methane emissions. In early 2022, Build Back Better supporters appeared ready to scale back the legislation to improve its chances to pass Congress. NMPF-backed climate provisions seem likely to be included in any such measure, with climate in turn appearing to be one of the legislative areas most likely to win adequate Senate support for passage.
DAIRY PRIDE Prods FDA The nomination of a new Food and Drug Administration commissioner provided an opening for NMPF to urge the agency to enforce dairy standards of identity in the name of consumer transparency and public health. After Reps. Peter Welch (D-VT) and Mike Simpson (R-ID) in the House, and Sens. Tammy Baldwin (D-WI) and Jim Risch (R-ID) in the Senate, reintroduced the DAIRY PRIDE Act, senators raised the issue with Dr. Robert Califf at his confirmation hearing to become FDA Commissioner. Sen. Baldwin asked Dr. Califf whether and when the FDA would begin enforcing its own labeling standards. Dr. Califf responded that he would make the issue a priority, stating there is “almost nothing
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NMPF worked with Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) to secure new funding in Build Back Better to improve how such programs could support dairy farmers.”
more fundamental about safety than people understanding exactly what they’re ingesting, so I am committed to making this a priority if I am confirmed.” NMPF is hopeful that FDA’s long overdue attention to the issue – including a pledge to provide enforcement guidance this year – creates an opportunity to make progress toward the agency following the law and finally enforcing its own dairy terms. Working on behalf of dairy farmers and their cooperatives, NMPF made important progress in 2021, helping to deliver important pandemic resources to the dairy sector and redoubling momentum on long-term priorities essential to the vitality of the dairy community. This policy progress, made on multiple fronts, will position NMPF for further critical successes in 2022.
ECONOMICS NMPF Leading Milk-Pricing Solutions NMPF economics staff are responsible for all economic analysis supporting its domestic and international dairy policy initiatives and promoting understanding of the complex economic structure of the domestic and global dairy industries. Audiences for economics analysis and publications range from NMPF members to the wider public, the dairy industry, media and federal officials and leaders to shape policies that support the industry. Staff economists undertook a project critical to its members in 2021: analyzing and explaining the effects of federal milk-pricing to members and lawmakers, as NMPF sought necessary changes to the Class I mover and explored a broader effort to improve the Federal Milk Marketing Order system. A major component of federal order update efforts emerged early in 2021 as NMPF developed a plan to modify the current federal order Class I skim milk price mover. The current formula dates to 2019, following NMPF’s agreement to a request from the International Dairy Foods Association, which sought a mover that would improve risk management for fluid milk handlers. The current mover failed to fully and fairly support farmers in 2020 during COVID-19 market price disruptions, as an unprecedented gap between Class III and IV prices caused the new mover to be significantly lower than it would have been under the previous “higher-of ” mover, leading to a loss of roughly $750 million for producers.
KEY SUCCESSES Spearheaded industry discussion of Federal Milk Marketing Order revisions Formulated proposal for a fairer Class I mover while leading industry debate Provided forecasts and analysis to encourage effective farmer risk management
NMPF Crafts a Fairer Mover Economics staff worked closely with NMPF’s Economic Policy Committee to create a mover for USDA consideration that’s fairer for farmers. After NMPF raised its concerns, USDA agreed to create the Pandemic Market Volatility Assistance Program (PMVAP) to provide pandemic assistance payments to dairy farmers who received lower prices from federal orders due to the substantially lower Class I prices that were created by pandemic-driven market abnormalities. Initial funding for the program totaled $350 million and program rules further limited assistance to many producers. NMPF is seeking additional legislation to more fully fund the remainder of those losses for dairy farms of all sizes. The Class I discussion evolved into a wider examination of milk-pricing within the FMMO system, which was last significantly updated
Expert Analysis for Farmers Beyond efforts such as the FMMO discussion, NMPF economics staff provides key management and analysis for the Cooperatives Working Together export assistance program. It also provides economic analysis of milk and dairy product consumption under an agreement with Dairy Management, Inc., with price- and margin forecasts a critical part of aiding dairy farmers in their risk management decisions.
A deep understanding of the economically complex dairy industry, extensive experience with many aspects of the industry, including its ongoing and dynamic evolution, its federal safety net policies, economic regulation and international trade negotiations, have enabled NMPF’s economics staff resources to maintain and advance NMPF’s leadership within the dairy industry and the wider U.S. agriculture sector.
in 2000. NMPF is leading a long-overdue industrywide push to update product-price formulas and other important provisions of the federal milk marketing order system. Economics has provided key staffing and analytical leadership for the NMPF Economic Policy Committee as it seeks to build nationwide consensus on this important initiative. Assisting the committee is a Task Force of marketing experts and specialists from NMPF’s member cooperatives, supplemented by working groups formed to examine individual aspects of milk pricing.
Economics staff have identified several features of the current federal order pricing mechanisms that require examination and potential updating that extend beyond the scope of most industry discussions of needed updates to the order system, adding value to members and reaffirming NMPF’s role as the center of analysis and innovation in crafting proposals to benefit dairy producers.
TRADE POLICY Policy Wins Cap Record Export Year Exports are vital to the health and growth of U.S. dairy farmers. 2021 saw a banner year for dairy sales abroad, clocking in at a record $7.75 billion. NMPF’s support for dairy’s strong trade success is done in close partnership with the U.S. Dairy Export Council, uniting dairy on trade policy priorities. 2021 saw NMPF trade policy staff making the case for export expansion while preserving existing market access. NMPF and USDEC advocated for actions to tackle the export supply chain crisis, fought to ensure that U.S. dairy exporters can fully benefit from existing trade agreements; backed steps to address trade barriers and export flow challenges; and promoted a global approach to international food systems that positions dairy well to continue to be a sustainability solution.
KEY SUCCESSES Worked to alleviate supply chain stress through sustained engagement with the Biden Administration and advancing the Ocean Shipping Reform Act
Preserved access to key export markets, including Mexico, the EU and Colombia, by fending off efforts to restrict U.S. access
Successfully led the push for the USMCA’s first-ever Dispute Settlement Panel to force Canada to reform its dairy tariff-rate quota policies
Worked with partners to secure a U.S. District Court ruling that “gruyere” is a generic cheese style, setting an important U.S. precedent on common food names Launched Dairy Trade Envoys to equip farmers and manufacturing staff with the tools and information necessary to tout dairy trade
NMPF, USDEC Thwart Trade Barriers in European Union, Colombia With foreign competitors and markets showing increasing creativity in erecting new barriers to products, NMPF worked closely with USDEC to address emerging trade threats, seeing major breakthroughs in key markets: the European Union (EU) and Colombia.
New EU dairy certificates that were to be imposed mid-year threatened to upend U.S. dairy exports – not only to the roughly $100 million EU market, but also to other markets that rely on U.S. inputs to produce products destined for the EU and to destinations where shipments are merely routed through EU ports. Together with USDEC, NMPF worked with the U.S. government and affected companies to establish an approach in December that not only preserved trade flows but did so in a way that did not impose onerous new mandates on dairy farmers or processors. NMPF also worked with USDEC and members to thwart higher milk powder tariffs that the Colombian Trade Ministry weighed imposing in 2021 as part of a tariff safeguard investigation. Successful work to dissuade Colombia from imposing the higher tariffs included a detailed filing in the case and oral testimony at an Aug. 12 safeguard case hearing held by the Colombian Trade Ministry, generating support from the U.S. government and Congress, and collaboration with allies in the Colombian processing sector.
NMPF Tackles Supply Chains Working with USDEC and a coalition of agricultural organizations, NMPF has pursued a multi-pronged approach to addressing the export supply chain crunches plaguing U.S. dairy exporters throughout the past year. With input from a member working group formed in July, the Federation played a key role in shaping legislative text and gathering support for the Ocean Shipping Reform Act, which passed the House of Representatives with an overwhelming bipartisan vote of 36460 in December. The legislation would provide the Federal Maritime Commission (FMC) with increased enforcement authority over ocean carrier practices that hinder U.S. dairy exports. NMPF collaborated with Senate offices on companion legislation introduced in February. Parallel to the legislative effort, NMPF worked closely with the Biden Administration to identify solutions and drive a greater focus on
export challenges. Sustained pressure on the administration led to a series of strides forward, including a Presidential Executive Order in July directing the FMC to reign in fees often levied outside of an exporter’s control, an agreement in October from the Ports of Los Angeles and Long Beach and key importers to move toward 24/7 port operations, and a January 2022 USDA announcement of a partnership with the Port of Oakland for a pop-up site to facilitate the flow of agricultural exports, funded by $500 million of funds made available to address the agricultural export supply chain issues in September.
NMPF also coordinated and participated in a series of roundtables and meetings with USDA, the Department of Transportation, White House Ports Envoy John Porcari, and other interagency stakeholders to identify these types of solutions, as well as others, and maintain pressure on the administration to take additional actions to alleviate shipping congestion.
U.S. Wins in USMCA Enforcement Dairy farmers won a major victory at the end of 2021 when a panel of legal experts evaluated Canada’s policies regarding improper administration of quotas meant to increase U.S. dairy access to its market and found on Dec. 20 that Canada was violating its U.S.-Mexico-Canada (USMCA) obligations, requiring the country to change its policies. NMPF, working together with its members and with USDEC, leveraged broad bipartisan support for U.S. action on the dispute, the first brought under USMCA’s new enforcement mechanisms. Staff coordinated more than 125 members of the House and Senate to convince the Biden Administration to initiate on May 25 the USMCA Dispute Settlement Panel. The U.S. Trade Representative (USTR) brought the case against Canada for violating its USMCA dairy tariff-rate quota (TRQs) commitments by assigning quotas in areas less likely to be filled by U.S. dairy. NMPF also concentrated on shoring up dairy’s largest export market – Mexico. Marshalling support from Ambassador Katherine Tai, Secretary Tom Vilsack, and Congress, as well as direct engagement with Mexican officials, NMPF and USDEC pressured Mexico throughout 2021 to beat back burdensome regulatory proposals such as unwarranted testing and conformity requirements that could negatively impact dairy trade in milk powder, cheese and other products. Holding these barriers at bay preserves a market accounting for over 20 percent of U.S. dairy exports.
Executive Committee member Allan Huttema testified at a U.S. Senate Finance Committee hearing on the impact of USMCA on U.S. dairy July 27.
Dairy Trade Envoys Promote Growth NMPF and USDEC also early in 2021 launched the Dairy Trade Envoys program, harnessing the expertise of 20 dairy producers and manufacturing staff to expand dairy’s voice on trade with government officials and the media. Envoys were tapped for multiple events in 2021, including Congressional testimony, in-person roundtables with members of Congress, webinars, and press interviews. The importance of expanding market access opportunities for our exporters was reinforced throughout all efforts.
Gruyere Legal Victory Preserves Generic Names NMPF, USDEC, the Consortium for Common Food Names (CCFN) and a coalition of dairy allies successfully secured a U.S. court determination that “gruyere” is a generic style of cheese that can come from anywhere. This first-of-its-kind courtroom decision issued in December sets a critical precedent that not only preserves U.S. cheese producers’ ability to use “gruyere,” but also lays the groundwork for similar findings on other longestablished generic names. NMPF’s Trade Policy team also staffs CCFN, an international organization focused on defending the rights of common food name users. In addition to the successful gruyere case, work last year included multiple legal filings opposing problematic geographical indications (GIs) and proactively working to advance beneficial trademark applications in key markets.
REGULATORY AFFAIRS Regulatory Staff Secure Dairy Gains NMPF’s regulatory team in the past year worked diligently on behalf of dairy cooperatives at every level of government, engaging as a conduit for agriculture to the White House, seeking gains in the ongoing battle on labeling, enhancing dairy’s influence over the ever-changing developments of the new Waters of the U.S. rule, and advocating for the U.S. dairy industry internationally through the UN Food Systems Summit.
KEY SUCCESSES Protected U.S. agriculture and stymied attacks on dairy through industry-leading messaging leading up to the U.N. Food Systems Summit Prepared the dairy sector for potential disease outbreaks and pushed back against dairy-farm regulation under the Intentional Adulteration Act
Secured federal pledge to delay any decision to ban pyrethrins, an essential pesticide used in agriculture
Advocated for food and agriculture before the DHS and the White House as the
COVID-19 pandemic continued
Expanded the fake-milk fight to the FDA Ombudsman, pressuring FDA to enforce its labeling standards
NMPF Leads Food, Ag Sector Efforts Against COVID-19 A crucial component of NMPF’s leadership within agriculture and throughout the federal government in 2021 was its vital role in the Food and Agriculture Sector Coordinating Council. The council serves as the primary private industryled policy coordination and planning entity to collaborate with FDA, USDA, the Department of Homeland Security, and the Food and Agriculture Government Coordinating Council, among others, to address the entire range of critical infrastructure security and resilience activities as well as sectorspecific issues. NMPF’s Clay Detlefsen, Esq., Senior Vice President, Environmental and Regulatory Affairs & Staff Counsel, chairs the privatesector side of the council. The council in 2021 and into 2022 continued its work identifying and mitigating problems caused by COVID-19, advocating on behalf of the nation’s essential critical infrastructure workforce, and conveying vital information to the White House regarding supply chain problems and workforce challenges associated with the Omicron variant spike at the beginning of 2022. The sector further engaged in information sharing about cybersecurity threats facing food and agriculture entities relating to criminal ransomware attacks and attacks designed to disrupt critical infrastructure perpetrated by state actors.
Animal Health Advances NMPF expanded its tuberculosis task force in 2021 into a multi-sector tuberculosis working group to include representatives from USDA, CDC (Centers for Disease Control and Prevention), dairy farmers, and state animal health and public health officials to look at human to cattle and cattle to human tuberculosis transmission. The working group aims to provide resources to dairy farmers and state animal and public health officials on tuberculosis testing and best practices on dairies. As part of its educational mission, NMPF led an online seminar for nearly 300 tuberculosis controllers, who work to advance the elimination of tuberculosis in humans, on human-to-cattle tuberculosis transmission, helping to bridge the knowledge gap between animal and public health officials.
Labeling Fight Escalates to FDA Ombudsman; Guidance Planned NMPF continued to pressure FDA for action on the mislabeling of plant-based dairy alternatives using dairy terms by drawing the FDA’s Ombudsman, a voice that encourages FDA to follow its own rules, into the plant-based labeling fray. NMPF sent a follow-up to a 2020 letter in August 2021 to the ombudsman asking it to intervene with FDA to ensure its rules are properly enforced. FDA has failed to enforce its own standards of identity for more than four decades, an approach that’s been harmful to public health. NMPF heard back from the ombudsman’s office on Jan. 14, 2022, stating that “they were actively reviewing the information and would get back to us in the coming months.” FDA has announced it will release guidance on the plantbased labeling issue in the first half of 2022.
NMPF also submitted comments to FDA’s cell-based seafood and USDA’s cell-based meat and poultry dockets, emphasizing that consumers have a right to know they are consuming cell-based/lab-grown products by making that explicitly clear on the label. NMPF also made clear that the word “cultured” should not be used on these synthetic products given its extensive historical use on several dairy products including but not limited to yogurt, butter, sour cream and kefir. “Cell-based,” lab-grown,” and “synthetic” were all options which NMPF would and could support.
In a labeling win, an FDA standard of identity for yogurt released in June ended a decades-long effort to revamp the rule. The new standard clearly states that “any food that purports to be or is represented as yogurt, must conform to the definition standard of identity for yogurt,” further proving that plant-based based should and need to be held accountable for illegally using dairy names.
NMPF Watches Environmental Watchdog NMPF is keeping a watchful eye on the Environmental Protection Agency (EPA) as it pursues regulatory and policy changes this year in the name of protecting the environment to ensure such efforts aren’t detrimental to dairy farmers. Issues on which NMPF is actively engaged includes the release of the PFAS (Per and polyfluoroalkyl Substances) strategic roadmap; the announcement of the revoking of the Navigable Waters Protection Rule; development of a new Waters of the U.S. (WOTUS) rule; revisiting air emissions under the Emergency Planning and Community Right-to-Know Act (EPCRA); and attempting to end the use of certain applications of pyrethrins and rodenticides in agriculture. While these regulatory and policy changes will be in flux for the near future, NMPF successfully helped delay EPA’s decision on pyrethrins until at least 2024, allowing more time for agricultural groups to pull together further evidence of its importance to farms. It also spoke up on WOTUS, submitting comments in February 2022 aligned with the American Farm Bureau Federation and other agricultural groups calling for a deliberate process in keeping with existing law in its rule revisions.
International Leadership Recognized NMPF, working with the U.S. Dairy Export Council and the Innovation Center for U.S. Dairy, successfully positioned U.S. dairy production as a centerpiece of a sustainable food system at the UN Food Systems Summit held in September, after months of work and extensive outreach. This work included: •
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Delivering three key “Game-changer” events linked to the UN FSS highlighting the FARM Program, Net Zero Initiative, and partnership with Feeding America as demonstration of U.S. dairy leadership in sustainable food systems Vocally and consistently advocating for a forwardleaning U.S. government approach to the summit through multiple meetings with USDA, HHS, and the State Department Submitting detailed recommendations to the U.S. government underscoring the additional needs to clearly communicate the positive role of sustainable livestock systems, promote milk as a key component in school meals, actively work to shape UN leadership comments and reports to align with U.S. interests, steer the UN process toward being conducted by multilateral organizations that prioritize science-based policy making; and Shaping an agriculture coalition letter outlining summit priorities sent to USDA Secretary Vilsack and Secretary of State Antony Blinken.
During the United Nations COP 26 meetings, USDA joined the Pathways to Dairy Net Zero Initiative, a groundbreaking, multi-stakeholder initiative that aims to accelerate climate change action across the dairy sector. The effort is well-aligned with the U.S. dairy industry’s own Net Zero Initiative, launched in 2020, that reinforces its leadership within global agriculture as a source of climate solutions. Dr. Jamie Jonker, NMPF’s Chief Science Officer, oversaw overall management of the more than 150 scientific and technical projects being conducted by International Dairy Federation (IDF) experts, including alignment on sustainable dairy production systems and engagement within these international forums, in his first year as Chair of the IDF’s Science and Program Coordination Committee
FARM PROGRAM FARM Program Expansion Enhances Consumer Assurance The National Dairy Farmers Assuring Responsible Management (FARM) program in 2021 saw continued growth and significant impact. The program established new initiatives as well as two new program areas – FARM Biosecurity and Calf Care and Quality Assurance. FARM program areas began laying the foundation for revisions taking place in Summer of 2024, including an industrywide animal care survey; environmental-focused resource development of Conservation Practice Questionnaire and Nutrient Management Plan factsheets; and ongoing evaluator training in all program areas that ensured the highest level of integrity and value for dairy farmers.
KEY SUCCESSES Solicited wide-ranging input for the upcoming
FARM Animal Care Version 5
Created state-by-state nutrient management plan fact sheets and a participant handbook under the
FARM Environmental Stewardship Program
Released the latest edition of the FARM Drug Residue Prevention Manual and Pocket Guide guided by the FARM Antibiotic Stewardship Task Force
Trained and certified 49 second-party evaluators to conduct voluntary FARM Workforce Development on-farm assessments Implemented new initiatives, including a new FARM Biosecurity program and FARM Excellence Awards to recognize outstanding engagement with the FARM Program
FARM Program Areas Advance The FARM program in 2021 saw growth that included a new program area and resource development and featured new initiatives and collaborations.
Development began in earnest for Version 5 of the FARM Animal Care Program in September. FARM conducted focus groups and an industry-wide survey that gathered feedback from nearly 700 responders seeking feedback on Version 4 and input on Version 5: • •
Approximately 63% of the respondents were farmers who felt that one or more of the Version 4 standards require changes. Overall, respondents tended to support maintaining most Version 4 existing standards and providing clarification to increase reliance on animal-based measures to indicate adequate care and offer more education and support.
Program standards are revised every three years to align with the latest research and best management practices. Version 4 will remain in place through June 30, 2024.
NMPF and FARM again worked with the FARM Antibiotic Stewardship Task Force to release the latest edition of the FARM Drug Residue and Prevention Manual and Pocket Guide. These resources are the primary educational tools for dairy farmers on the judicious and responsible use of antibiotics.
U.N. Summit Features ‘Game-Changer’ The U.N. Food Systems Summit held in September brought together constituencies from across the world, focusing on positively changing the world’s food systems. The U.S. dairy industry worked to ensure that dairy farmer, processor and supply chain interests were represented. FARM itself was submitted as a “game-changing solution” to achieving the summit’s Sustainable Development Goals.
FARM Workforce Development saw significant growth in program implementation and resources. FARM conducted three evaluator trainings to certify 49 evaluators who have completed more than 100 evaluations. Seventeen organizations, representing 60% of the U.S. milk supply, have started using the evaluation tool. New resources included additional HR (Human Resources) templates, participant handbook, updated state legal fact sheets and safety manual additions.
The FARM Environmental Stewardship Program continued to provide tools and resources for dairy farmers to measure and improve their environmental footprints. Since the program’s inception in 2017, evaluators have conducted more than 2,300 on-farm assessments. Strategic planning motivated the development of a Conservation Practice Questionnaire, with a goal of it being an optional component of the evaluation in 2022. FARM also developed state-by-state nutrient management plan fact sheets and released a participant handbook. Other FARM outreach initiatives include Quick Convos webinars with industry leaders and subject-matter experts discussing topics including: antibiotics, safety and protocols, farm and dairy customers, FARM evaluators, CCQA, Net Zero implementation, disbudding pain mitigation and a farmer’s perspective on FARM. Finally, FARM partnered with the DMI Farmer Relations team to host the Summer Series webinars for State and Regional Checkoff Staff to provide a baseline understanding to checkoff staff partners.
FARM Returns to the Road The FARM Program began returning to inperson representation at events with the Cattle Industry Convention and National Cattlemen’s Beef Association Trade Show in August, where attendees could learn about CCQA and the latest program happenings.
FARM was thrilled to return to World Dairy Expo at the end of September. The team hosted a panel lunch with 50 industry stakeholders and farmers
to share information on the newest initiatives, biosecurity and CCQA.
FARM also attended the American Association of Bovine Practitioners Annual Conference in October, where veterinarians had an opportunity to ask questions, gather resources and have conversations. FARM participated in a joint session with the BQA Program to share current standards and future revisions, Biosecurity Program and CCQA updates.
New Program Area, New Awards FARM in 2021 also launched its newest program area: FARM Biosecurity, a program funded through a grant from USDA’s National Animal Disease Preparedness and Response Program to develop and improve biosecurity on U.S. dairy farms. NMPF will use the $488,603 grant to implement and coordinate the Secure Milk Supply plan and develop the new everyday Biosecurity Program.
FARM in November created its new FARM Excellence Awards to recognize a farm or evaluator’s outstanding engagement with the FARM Program. Inspired by FARM’s Farmer Advisory Council (FAC), the initial winners were: •
Animal Care & Antibiotic Stewardship: Borst Dairy | Rochester, MN | AMPI
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Workforce Development: Willow Behrer Farms | Spruce Creek, PA | Land O’ Lakes
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Environmental Stewardship: Canon Dairy | West Middlesex, PA | DFA FARM Evaluator: Tim Boeck | Land O’ Lakes
The FARM Program also formalized its partnership program, with results including projects like the “A Mi Si Me Importa” video created with support from Alltech, Elanco and the Animal Ag Alliance; the Cargill Dairy Dreams actionable safety review; and the 2021 Milk & Dairy Beef Drug Residue Prevention Reference Manual supported by Zoetis. FARM’s Calf Care & Quality Assurance (CCQA) program continued to evolve, publishing the first volume of its Animal Care Reference Manual. This manual encourages calf-raisers to approach management decisions with thoughtfulness and appreciation for their responsibility to their animals, consumers and the broader U.S. cattle industries. The program is jointly led by the FARM Program and NCBA’s Beef Quality Assurance (BQA) program.
REACHING OUT NMPF Outreach Supports Dairy Today, Builds Its Future NMPF’s wide range of support and outreach across the dairy community in 2021 contained the common threads of serving members and communicating dairy’s value to the world. NMPF communications staff created the Dairy Voice Network, which equipped farmer-leaders nationwide to represent dairy farming before media and public audiences. NMPF also awarded its first Farmer Communicator of the Year award to Charles Krause of Krause Holsteins in Buffalo, MN, and its top co-op communications award to AMPI. Storytelling advanced via Dairy Defined essays and podcasts and the Farmer Focus profile series. A wide range of NMPF-led organizations, from Cooperatives Working Together to the Real Seal and Young Cooperators, advanced dairy’s present and future. And a return to in-person meetings renewed ties and reaffirmed NMPF’s role as the essential convener of the nation’s leading dairy farmers.
KEY SUCCESSES Supported record dairy exports through the
Cooperatives Working Together Program
Launched the Dairy Voice Network, a nationwide network of farmers ready to tell dairy’s story to wide audiences Returned to in-person meetings, convening industry leaders to lead discussions on critical issues Nurtured dairy’s next generation of leaders through the Young Cooperators Program
REAL Seal Highlights Dairy Benefits Since assuming management of the REAL Seal in 2012, NMPF has licensed the icon to companies that wish to pool their resources to educate consumers about the benefits of real, American-made dairy foods. REAL Seal markets through Facebook and Pinterest, platforms that give advertisers the ability to target families in their prime dairy-buying years.
Social media posts mainly consist of Dairy Facts, which give information about dairy’s benefits and contrasts them with the dubious nutritional offerings of dairy imitators; Dairy Hacks & Moments that offer ways consumers can use dairy in their diets); and “Keeping It Real” Dairy Spotlights that highlight the offerings of brands that display the Seal on their products. Real Seal Dairy Spotlights in the past year ranged from global dairy giant Nestle, to regional dairy brand Kriemhild Dairy Farms and dozens of others.
In 2021, the program generated 140 Dairy Facts, 60 Dairy Hacks & Moments and featured 12 REAL Seal brands. Those posts achieved an 8.7 percent engagement rate, nearly triple the industry average. The RealSeal.com website enjoyed a 66 percent increase in website sessions and a 50 percent increase in REAL® buying guide visits.
CWT Critical to Record Exports Providing dairy co-op sector support since 2003, the Cooperatives Working Together (CWT) Export Assistance Program helps member cooperatives secure export sales of higher-milkfat dairy products – and supports member efforts to gain and maintain global market share. As a result, U.S. dairy farmers and their cooperatives benefit from these efforts to increase global demand for our products, including American-type cheeses, cream cheese, butter, anhydrous milkfat, and whole milk powder. During 2021, CWT assistance supported a record year for dairy exports: •
CWT-assisted exports reached 152 end customers in 28 countries
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11% of 2021 assisted sales were to end customers that CWT members had never sold to before
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CWT assisted more product (+3%) with fewer dollars (-11%) in 2021 than it did in 2020
Most importantly, CWT-assisted export volume reached 132.8 million pounds, equivalent to nearly 1.5 billion pounds of milk on a milkfat basis
With milk production expected to face headwinds in 2022 in several major global regions, CWT is well-positioned to provide a valuable push to additional worldwide sales throughout the year. The program’s mission remains unchanged – contributing to U.S. dairy export growth in dairy product categories most in need – by helping to increase purchases from both new and existing overseas buyers.
Members Return to In-Person Annual Meeting in Las Vegas NMPF’s return to an in-person annual meeting in 2021 in November brought together more than 600 dairy community leaders in Las Vegas to review how the industry weathered the pandemic’s challenges and prepare for a return to more normal future conditions.
“The past 20-plus months have shown us that life can change quickly, and in ways beyond our control,” said NMPF Chairman Randy Mooney, in remarks before dairy-farmer leaders from NMPF’s 24 member cooperatives. “It’s also shown that when that happens, people turn to what they know and trust. They turn to dairy.” NMPF President and CEO Jim Mulhern highlighted NMPF’s work for members, such as working with Congress to deliver more than $6 billion in federal aid to dairy farmers in the wake of the COVID-19 pandemic that began in 2020. The gains, he said, were evidence that “when we are strategic, patient, and act with intelligence, we can meet our challenges.”
Deputy Agriculture Secretary Jewel Bronaugh also spoke to the meeting via video, highlighting dairy’s leadership in climate-smart agriculture initiatives. Also providing remarks via video were Sen. Debbie Stabenow, D-MI, chairwoman of the Senate Agriculture Committee; Rep. G.T. Thompson, R-PA, ranking member of the House Agriculture Committee; and Sen. Mike Crapo, R-ID.
Association; Tony Graves, Prairie Farms Dairy; Craig Caballero, United Dairymen of Arizona; and Jimmy Kerr, Cooperative Milk Producers. New directors elected to the Board of Directors approved by NMPF delegates in 2021 included: • • • • • • • • • • • •
Neil Zwart – CDI Travis Fogler – DFA Ed Gallagher – DFA Karen Jordan – DFA Melvin Medeiros – DFA Perry Tjaarda – DFA Greg Schlafer – Foremost Farms Duane Hershey – Land O’Lakes Doug Chapin – Michigan Milk Producers Assoc. Tony Freeman – Northwest Dairy Association Joe Jenck – Tillamook County Creamery Assoc. Craig Caballero – United Dairymen of Arizona
NMPF also recognized two retiring board members, Greg Wickham of DFA and Ken Nobis of Michigan Milk Producers Association, as Honorary Directors for Life. November’s annual meeting was the first in-person governance gathering since March 2020 – both 2021 Board of Directors meetings, held in March and June, took place virtually.
Mooney, representing Dairy Farmers of America, was reelected Chair of the organization, and Dave Scheevel of Foremost Farms was reelected Treasurer. New officers for 2022 include Simon Vander Woude of California Dairies, Inc., First Vice Chair; Cricket Jacquier of Agri-Mark, Second Vice Chair; and Jay Bryant of Maryland-Virginia Milk Producers, Secretary. Those five officers joined ten others elected to NMPF’s Executive Committee:
Steve Schlangen, Associated Milk Producers, Inc.; Rob Vandenheuvel, CDI; Melvin Medeiros, DFA; Dennis Rodenbaugh, DFA; Pete Kappelman, Land O’Lakes; Doug Chapin, Michigan Milk Producers Assn.; Allan Huttema, Northwest Dairy
During NMPF’s 2021 annual meeting, Agri-Mark received the championship Chairman’s Award for its Extra Sharp Cheddar made in Middlebury, Vermont.
YCs Engage Year-Round The National Young Cooperators (YC) Program stepped up its virtual and in-person educational opportunities to over 600 producers and co-op staff members in 2021 to meet the evolving needs of young dairy farmer leaders. The program organized nine 45-minute webinars throughout the year on topics including financial risk management, transition planning, economics, and workforce management. The virtual Dairy Policy and Legislative Forum, held June 15, covered the breadth of NMPF’s ongoing policy work and included a panel of leaders from NMPF’s Board of Directors, as well as remarks and a Q&A session with Congressman David Valadao (R-CA), a former YC from Land O’Lakes, Inc.
The YC Program convened in-person for the first time in nearly two years on Sept. 29, sponsoring a session on dairy cow productivity and hosting a dinner reception at World Dairy Expo in Madison, Wisconsin. Participants met again Nov. 13-14 at the Leadership and Development Program, held in conjunction with the NMPF’s Joint Annual Meeting, in Las Vegas, learning about stress management, ecosystem service markets, consumer perceptions on animal care, and more. Members of NMPF’s YC Advisory Council for 2021 included: • • • • • • • • • • • •
James Weber – Chairperson, Michigan Milk Producers Association Nathan Wiese – Vice Chairperson, FarmFirst Dairy Cooperative Tim Christiansen – Second Vice Chairperson, Upstate Niagara Cooperative Amanda Button – Agri-Mark Micah Jr. & Emily Meyers – Land O’Lakes Josh Neahring – Tillamook Josh & Katie Sauter – Dairy Farmers of America Kris & Chelsea Scheider – Foremost Farms Brent & Emily Simon – Michigan Milk Producers Association Jason & Tiffany Staehely – Northwest Dairy Association Justin Watt – Maryland & Virginia Milk Producers Matthew & Kaley Wolf – Dairy Farmers of America
NMPF STAFF Jim Mulhern, President & CEO
Nicole Ayache, Sr. Director, Sustainability Initiatives Tom Balmer, Executive Vice President
Alan Bjerga, Sr. Vice President, Communications
Paul Bleiberg, Sr. Vice President, Government Relations Charlene Boulden, Executive Assistant to the CEO
Stephen Cain, Analyst, Economic Policy & Market Research
Jaime Castaneda, Executive Vice President, Policy Development & Strategy Clay Detlefsen, Sr. Vice President, Regulatory & Environmental Affairs
Chris Galen, Sr. Vice President, Membership Services & Strategic Initiatives Khadija Gibson-White, Program Manager, CWT
Beverly Hampton Phifer, Manager, FARM Program Stakeholder Relations Miquela Hanselman, Manager, Regulatory Affairs
Jamie Jonker, Chief Science Officer and Vice President, Sustainability & Scientific Affairs Louise Kamali, Sr. Director, Meetings & Office Services Claudia Larson, Sr. Director, Government Relations
Gail Mobley, Sr. Director, Finance & Administration Shawna Morris, Sr. Vice President, Trade Policy Tony Rice, Manager, Trade Policy
Kartik Sachdeva, Coordinator, Accounts Payable
Sage Saffran, Coordinator, Sustainability Initiatives Scott Sanborn, Office Assistant
Emily Yeiser Stepp, Vice President, FARM Animal Care Theresa Sweeney-Murphy, Director, Communications Peter Vitaliano, Vice President, Economic Policy & Market Research Bobby Yi, Sr. Director, Information Technology
BOARD OF DIRECTORS *
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* Executive Committee Member
James Jacquier, Second Vice Chairman
Travis Fogler
Sheryl Meshke
Dairy Farmers of America, Inc. Maine
Ed Gallagher
Steve Schlangen
Dairy Farmers of America, Inc. New York
Brian Hardy
Tom Beringer
Dairy Farmers of America, Inc. Utah
Jerrel Heatwole
Simon Vander Woude, First Vice Chairman
Dairy Farmers of America, Inc. Delaware
Kent Herman
Brad Anderson
Dairy Farmers of America, Inc. North Carolina
Neil Hoff
Robert Vandenheuvel
Dairy Farmers of America, Inc. Texas
Harold Howrigan
Gerben Leyendekker
Dairy Farmers of America, Inc. Vermont
Karen Jordan
Will Dyt
Dairy Farmers of America, Inc. North Carolina
Jackie Klippenstein
Neil Zwart
Chris Kraft
Agri-Mark, Inc. Connecticut
Associated Milk Producers Inc. Minnesota Associated Milk Producers Inc. Minnesota Bongards’ Creameries Minnesota
California Dairies, Inc. California California Dairies, Inc. California California Dairies, Inc. California California Dairies, Inc. California
Dairy Farmers of America, Inc. Missouri
California Dairies, Inc. California California Dairies, Inc. California
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Dale Mattoon
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Jimmy Kerr
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Cayuga Milk Ingredients New York
Cooperative Milk Producers Association Virginia
Craig Edler
Dairy Farmers of America, Inc. Wisconsin
Dairy Farmers of America, Inc. Colorado
Melvin Medeiros
Dairy Farmers of America, Inc. California
Randy Mooney, Chairman
Dairy Farmers of America, Inc. Missouri
Doug Nuttelman
Dairy Farmers of America, Inc. Nebraska
Jeff Raney
Dairy Farmers of America, Inc. Pennsylvania
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Dennis Rodenbaugh
Dairy Farmers of America, Inc. Kansas
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Rick Smith
Jay Bryant, Secretary
Maryland & Virginia Milk Producers Coop Virginia
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Michigan Milk Producers Association Michigan
Doug Chapin
Perry Tjaarda
Michigan Milk Producers Association Michigan
John Wilson
Tony Freeman
Dairy Farmers of America, Inc. Kansas
Gib Martin
Mt. Joy Farmers Cooperative Pennsylvania
Dairy Farmers of America, Inc. California Dairy Farmers of America, Inc. Missouri
Scot Meyer
Ellsworth Cooperative Creamery Minnesota
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FarmFirst Dairy Cooperative Wisconsin
Joe Becker
Northwest Dairy Association/Darigold Washington
Allan Huttema
Northwest Dairy Association/Darigold Idaho
Stan Ryan
Jeff Lyon
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Lone Star Milk Producers Texas
Joe Diglio
Dan Senestraro
Dairy Farmers of America, Inc. Kansas
Land O’ Lakes, Inc. Wisconsin
Sonia Fabian
Brian Rexing
Dairy Farmers of America, Inc. Indiana
Pete Kappelman
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Northwest Dairy Association/Darigold Washington
Tony Graves
David Scheevel, Treasurer
Prairie Farms Dairy Illinois
Greg Schlafer
Joe Jenck
First District Association Minnesota
Joe Wright
Southeast Milk Producers Florida
Foremost Farms USA Minnesota Foremost Farms USA Wisconsin
Joey Fernandes
Land O’ Lakes, Inc. California
Duane Hershey
Land O’ Lakes, Inc. Pennsylvania
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Tillamook County Creamery Association Oregon
Craig Caballero
United Dairymen of Arizona Arizona
Larry Webster
Upstate Niagara Cooperative, Inc. New York
National Milk Producers Federation 2107 Wilson Blvd., Suite 600 Arlington, VA 22201 Phone: (703) 243-6111