From Our President and CEO

Every successful dairy farmer is familiar with the concept of Return on Investment (ROI), which is central to making smart business decisions. The most tangible ROI measure is financial—but what generates healthy returns is much more complex than that, ranging from smart spending choices to sweat equity to the simple determination to get things done.

One clear ROI for our members early this year was the U.S. Department of Agriculture’s (USDA) decision to allocate an additional $100 million in payments under the Pandemic Market Volatility Assistance Program to farmers for production up to 9 million pounds of milk during the six-month stretch of the COVID-19 pandemic when price imbalances in milk markets were at their worst. While not everything we sought (and are still seeking), that $100 million— on top of the $250 million already gained for the first 5 million pounds of milk— happened because we didn’t give up fighting for our members when a flaw in Class I pricing became apparent.

Along with rectifying that imbalance, this year we’re addressing the Federal Milk Marketing Order (FMMO) system itself, modernizing it in ways that will hold benefits for dairy farmers of all sizes, in all regions, among all business models. We’re also seeking regulatory clarity on everything from water rules to plant-based beverages. We do all this with a staff that’s lean, but mighty—and a membership that’s forward-thinking, influential, and willing to have the tough conversations necessary to forge the consensus this industry needs.

This year’s Activities and Accomplishments highlights our work across the federal policy spectrum. It also highlights how decisions in Washington connect with choices made from U.S. dairy farms to global milk markets, through our work with the National Dairy Farmers Assuring Responsible Management (FARM) Program, the U.S. Dairy Export Council (USDEC) and other partners. We gain policy wins—and stave off negative outcomes for our members— because you invest in NMPF. And, in keeping with that trust, we invest our time, our passion, our skills and our energy to get you results.

Thank you for that investment. I hope you benefit from reading about some of the returns it generated in 2022, and how those accomplishments are setting the stage for dairy farmers to gain greater benefits in the years ahead.

Jim Mulhern President and CEO National Milk Producers Federation

Government Relations

Securing Wins on Sustainability, Nutrition

NMPF’s government relations work in 2022 largely moved beyond the COVID-19 pandemic and focused on securing key wins on sustainability and nutrition policy, with further progress on ag labor reform.

NMPF also persisted in its work to rightsize a key USDA dairy pandemic program, which culminated in good news in January 2023 that additional support is on the way for thousands of dairy farmers.

NMPF’S GOVERNMENT RELATIONS WORK IN 2022 FOCUSED ON SECURING KEY WINS ON SUSTAINABILITY AND NUTRITION POLICY.

Key Advances

Fixing an Inequity for Dairy Farmers

First, fixing inequity. In August 2021, USDA unveiled the Pandemic Market Volatility Assistance Program, directly responding to NMPF’s advocacy for reimbursing dairy farmers of all sizes for unique pandemic-related losses that they suffered throughout the latter half of 2020. The program was initially slated to help producers recover $350 million of a total $750 million unintended loss they endured, but it limited reimbursements to five million pounds per farmer, which prevented many family dairy producers from recouping more than a minimal portion of their losses.

Following the program’s unveiling, NMPF immediately set out to make the program work for dairy farmers of all sizes. NMPF worked with key members of Congress to coordinate bipartisan efforts to seek additional funding for those producers whose reimbursements were limited by the program milk-production cap.

Thanks to NMPF’s efforts, USDA announced on Jan. 23 that $100 million remaining from the program’s original $350 million would be used to provide additional support for impacted producers. This support will provide reimbursement for losses up to nine million pounds of milk over the latter six months of 2020. While this does not fully close the gap, it will provide stronger reimbursements to those producers who endured difficult losses on all their milk production and would not have happened without NMPF’s year-long advocacy and direct engagement with members of Congress.

Making Net Zero a Reality

NMPF worked with Congress last year to enact a vital increase in farm bill conservation program funding. The Inflation Reduction Act, signed into law Aug. 16, provides nearly $20 billion for programs like the Environmental Quality Incentives Program, with a focus on climate-smart agricultural practices that can yield meaningful environmental benefits.

MELVIN MEDEIROS, A CALIFORNIA

DAIRY FARMER AND DAIRY FARMERS OF AMERICA MEMBER, HIGHLIGHTED DAIRY'S SUSTAINABILITY

Progress During A House Agriculture Committee Listening

SESSION ON JULY 7.

30% NMPF WON NEW FUNDING AND DIRECTION FOR THE FDA TO RECLASSIFY AND EXPEDITE ITS PROCESS FOR APPROVING ANIMAL FEED INGREDIENTS PROVEN TO REDUCE ENTERIC METHANE EMISSIONS BY AS MUCH AS 30 PERCENT.

This new funding will help dairy farmers advance their proactive sustainability leadership and fulfill their goals of becoming greenhouse gas neutral or better, improving water quality, and optimizing water use by 2050. NMPF led efforts within the agriculture and conservation communities to advocate for this funding, which includes $100 million targeted toward innovative projects that use feed management to reduce enteric methane emissions from livestock, a critical component of dairy’s Net Zero Initiative to fulfill its 2050 goals. The law also included NMPF’s long-sought Investment Tax Credit to help cover the upfront costs of methane digesters, another valuable tool in the Net Zero toolbox.

As part of the 2022 government funding package, NMPF won new funding and direction for the Food and Drug Administration (FDA) to reclassify and expedite its process for approving animal feed ingredients proven to reduce enteric methane emissions by as much as 30 percent. NMPF participated in FDA’s Oct. 18 listening session and remains committed to making these climatesmart ag feed ingredients more readily available to dairy producers.

Leading in Nutrition

NMPF also led efforts to safeguard schools’ ability to choose the milk varieties they serve, recognizing the vital role milk plays in providing kids the nutrients they need. In February 2022, USDA issued a rule protecting 1% flavored milk in school meals through the 2023-24 school year; the House Education and Labor Committee in July approved a child nutrition bill that bars USDA from preventing schools from offering milk varieties consistent with the Dietary Guidelines for Americans. Although not enacted, the House bill signals that protecting milk varieties consistent with the guidelines is a House priority.

In June, NMPF led 11 national agricultural, anti-hunger, nutrition and medical groups in a virtual listening session urging the White House to highly prioritize access to affordable, diverse and nutritious foods at its September Conference on Hunger, Nutrition, and Health. The session offered the White House both expertise and lived experience from a wide range of organizations on the importance of increased access to food and a diverse range of food choices in improving nutrition security and nutrition-related health.

Jim Mulhern, NMPF President and CEO, attended the White House conference in September. NMPF was pleased that the White House strategy released with the conference echoes NMPF priorities to increase access for affordable food for all and culturally appropriate food options and recommendations.

Making Progress on Ag Labor

NMPF actively supported Sens. Michael Bennet (D-CO) and Mike Crapo (R-ID) throughout 2022 in their work to negotiate a bipartisan ag labor reform bill that would build upon and improve the House-passed Farm Workforce Modernization Act, including organizing and leading multiple outreach efforts from hundreds of ag organizations.

When the two senators were unable to resolve all issues needed to introduce a bipartisan bill, Sen. Bennet used points of agreement he had reached with Sen. Crapo as the basis for his ag labor reform bill, introduced in the final days of the congressional year. That measure, the Affordable and Secure Food Act, gained NMPF’s support by addressing dairy’s two overarching workforce needs— providing protection for current workers and their families as well as dairy access to the H-2A program—despite weaknesses in the bill, such as its cap on the number of year-round worker visas.

Sen. Bennet’s measure failed to receive a congressional vote in 2022. However, the work done by NMPF and others in the 117th Congress helped enhance the support and public pressure for reform.

CLINT BURKHOLDER, A MARYLAND AND VIRGINIA

MILK PRODUCERS

COOPERATIVE ASSOCIATION MEMBER, HOSTED HOUSE REPUBLICANS FOR A TOUR OF HIS PENNSYLVANIA

DAIRY FARM ON JULY 15.