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LEGISLATIVE WATCH
NMPF celebrates House passage of milestone bipartisan ag labor bill; focus shifts to Senate
NMPF commended the House of Representatives for passing the bipartisan Farm Workforce Modernization Act (H.R. 5038), before adjourning for 2019. The bill includes critical provisions to address dairy’s unique workforce needs and represents the first House-passed agricultural labor reform measure in more than three decades.
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NMPF thanked Immigration Subcommittee Chair Zoe Lofgren (DCA) and Congressman Dan Newhouse (R-WA), the lead sponsors of H.R. 5038, as well as the more than four-dozen co-sponsors drawn from each party, for their work on this legislation, which has drawn wide support from prominent groups in the agricultural, business, worker, and humanitarian communities.
“The passage of legislation that helps address dairy’s unique workforce challenges is certainly a milestone and an opportunity we must pursue to the fullest,” said Jim Mulhern, president and CEO of NMPF. “Agricultural labor reform is long overdue. With the House having acted it is now imperative that the Senate strive to fully address the needs of dairy farmers and all of agriculture, helping farmers do what they do best: feed our nation, and the world.”
More than 300 dairy, agriculture, business, and agriculture-allied organizations urged House leaders in mid-November to bring the bill to the floor for a full House vote, while more than 80 immigration and labor advocacy organizations called on their representatives to support the measure. The bill’s diverse backing ranged from the Coalition for Humane Immigrant Rights and the United Farm Workers to:
The New York Farm Bureau, whose President, David Fisher said the bill “goes a long way towards addressing the workforce shortage that limits farmers’ ability to plant, harvest, and care for livestock.” The legislation “would take a significant step to ensure that New York agriculture is positioned to have a sustainable and reliable workforce that will support our rural economy.”
The Cato Institute, whose analysis estimated the bill “would have saved H-2A farmers in 2019 about $324 million in labor expenses for H-2A workers alone.” The bill would “substantially reduce the illegal market for labor and increase agricultural production, without harming U.S. workers,” the organization said.
And the U.S. Chamber of Commerce, which stated the bill “would take important steps to address the growing struggle of agricultural employers to meet their workforce needs.”
NMPF has begun discussions with senators on a bipartisan basis, working in partnership with other agricultural organizations.
SOURCE: NMPF
DISTRICT 1 Art Riske, Hanover .............................517-524-6015 Clark Emmons, Fayette, OH ................419-466-4471 Brian Preston, Quincy.........................517-376-1350 Scott Ferry, Litchfield.........................517-214-3298 Jeff Horning, Manchester...................734-428-8610
DISTRICT 2 Danny Ransler, Gobles........................269-628-4218 Dan Ritter, Potterville ........................517-645-7318 Richard Thomas, Middlebury, IN.........574-202-5198 Mark Crandall, Battle Creek................269-660-2229 Michael Oesch, Middlebury, IN ..........574-825-2454
DISTRICT 3 Bill Stakenas, Free Soil .......................231-425-6913 Burke Larsen, Scottville......................231-425-8988 Arlyn Walt, Coopersville .....................616-837-8247 Tim Butler, Sand Lake ........................269-330-5538 Bill Gruppen, Zeeland ........................616-520-5143
DISTRICT 4 William Pirman, Skandia....................906-869-4515 Dave Folkersma, Rudyard...................906-630-1957 Paul Ponik, Posen ..............................989-464-5924 Marvin Rubingh, Ellsworth ................425-533-8106 Jeremy Werth, Alpena........................989-464-4022
DISTRICT 5 Tom Jeppesen, Stanton ......................989-506-5287 Bruce Benthem, McBain.....................231-825-8182 Amy Martin, Leroy .............................231-388-0496 Robert Lee, Marion ............................231-743-6794 Mike Rasmussen, Edmore...................989-379-4694
DISTRICT 6 Jon Thelen, Westphalia ......................989-587-3951 Renee McCauley, Lowell.....................616-283-6411 Steve Thelen, Fowler..........................989-682-9064 David Reed, Owosso...........................989-723-2023 Mike Halfman, St. Johns.....................989-640-1963
DISTRICT 7 Tracy House, Clare..............................989-621-6610 Philip Gross, Weidman .......................989-289-0670 Jason Elenbaum, Mayville..................989-274-1974 John Bennett, Prescott.......................989-345-4264 Rodney Fowler, Chesaning .................989-302-2299
DISTRICT 8 Mike Noll, Croswell ............................810-404-4071 Jeremy Sharrard, Peck........................810-404-5076 Bryan Schulte, Ruth ...........................989-551-8200 Bill Blumerich, Berlin.........................810-706-2955 Darwin Sneller, Sebewaing ................989-977-3718
Delegates at the 104th Annual State Delegate Meeting will elect two at-large members to serve a three-year term on the MMPA board of directors. The MMPA State Nominating Committee met and decided on the following four candidates for the two open positions after a review of applications and interview process: Bruce Benthem and Bruce Lewis for one position and Marv Rubingh and Kris Wardin for the second position.
Position One
Bruce Benthem
Local: Evart
District: 5
Hometown: McBain, MI
Bruce Benthem has grown his herd from 30 cows to the 2,850 that he has today. In partnership with his family, Bruce operates 3,300 acres on Benthem Brothers Dairy. He’s been a member of MMPA for 38 years and has served as a delegate, on the Advisory Committee, Resolutions Committee and Nominating Committee. Bruce is also active in his church and is chairman of the McBain Grain Company Board. He’s a 1980 graduate of MSU with certificates in dairy and crops.
Bruce Lewis
Local: Hillsdale-Litchfield
District: 1
Hometown: Jonesville, MI
Bruce Lewis has been farming since 1984. Today, he operates 3,100 acres and milks 700 cows on Pleasant View Dairy. He’s been active in MMPA for many years, currently serving as a delegate, a member of the Resolutions Committee and the HillsdaleLitchfield Local Vice President.Along with being an Outstanding Young Dairy Cooperator (OYDC), along with his wife, Jennifer, in 2005, Bruce was also named MSU Dairy Farmer of the Year in 2013 and has received numerous other awards in recognition for his leadership within the industry.
Position Two
Marvin Rubingh
Local: Upstate
District: 4
Hometown: Ellsworth, MI
Marvin Rubingh owns and operates 1,600 acres on Rubingh’s Dairyland LLC along with his wife, Jane. He began farming in 1983 and has grown his herd to 400 milk cows. Marvin has taken an active role in Michigan’s agriculture industry, previously serving as Antrim County Farm Bureau President and as a delegate to the State Farm Bureau Meeting. Within MMPA, Marvin currently serves as President of the Upstate Local, President of District 4, and sits on the Resolutions and Advisory Committees.
Kris Wardin
Local: Mid-Michigan
District: 6
Hometown: St. Johns, MI
Kris Wardin operates 850 acres and milks 500 cows on Evergreen Dairy Farm, LLC. He serves as the current MMPA Board Chairman and has previously represented his fellow cooperators as District 6 Chairman, 2012 OYDC, National Milk Producers Federation YC Chaircouple and on the Advisory Committee. Outside of MMPA, Kris also shares his voice within Michigan’s dairy and agriculture industries, serving on the UDIM Board and as a delegate for United Producers Inc.
CULTIVATING CONNECTIONS DRIVING INNOVATION CULTIVATING CONNECTIONS DRIVING INNOVATION
Goals Set, Goals Met with USDEC
SECRETARY TOM VILSACK SHARES U.S. DAIRY’S EXPORT STRATEGY WITH MMPA MEMBERS
BY MELISSA HART
Exports were the focus when Secretary Tom Vilsack, President and CEO of the U.S. Dairy Export Council (USDEC), was invited to speak at MMPA’s recent
“I should start by saying thank you to all of you for the investments that you’ve made with USDEC because you have been an integral part of what we refer to as our next five percent plan,” Vilsack said, sharing about dairy exports and their impact on dairy producers.
MMPA together with other cooperatives and institutions raised $4 million for USDEC that was used in three basic areas: hiring more people, forming more partnerships and doing more promotions around the world.
“The next 5% has really three basic goals: we want to increase the volume of sales outside the U.S., we want to increase the value of those sales and we want to increase the percentage of milk solids produced in this country that’s going into the export market,” he said.
Vilsack said U.S. dairy producers are good at what they do, and as they continue to increase milk production, U.S. Dairy must find more markets for milk, cheese, ingredients and other dairy products. “With 95 percent of the world’s population living outside the United States, that’s where a significant part of our future business lies, so, this became an opportunity for us that we wanted to explore deeper,” said Vilsack.
New Hires
Thanks to funds from state and regional checkoff organizations, including the United Dairy Industry of Michigan, USDEC hired more business development professionals in critical export growth regions to assist U.S. exporters to increase their international sales. “We went into markets like the Middle East/North Africa, Southeast Asia, Japan and Korea, and hired people with intimate knowledge of the retail and the food manufacturing sectors in an effort to better understand individual markets so we can sell more U.S. ingredients and more cheese,” said Vilsack.
USDEC also hired an application specialist in the important market of Southeast Asia, who is trained in new product development, which will open up business opportunities. Regulatory affairs was another hiring focus, with USDEC bringing on a specialist in Singapore to provide even greater technical assistance and guidance on import requirements and regulations in Southeast Asia.
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SECRETARY TOM VILSACK, PRESIDENT AND CEO OF THE U.S. DAIRY EXPORT COUNCIL, SPEAKING AT MMPA’S LEADERS’ CONFERENCE IN EAST LANSING, MICHIGAN.
Partnerships Also, thanks to state and regional checkoff organizations, more funding has been provided to establish global partnerships in export markets with key academic and culinary institutions such as the Food Innovation and Resource Centre of Singapore Polytechnic and China’s Jiangnan University. Food technologists at these universities have been working with U.S. dairy suppliers to develop innovative product concepts suited to specific tastes of consumers in Southeast Asia and China to create business opportunities for U.S. Dairy. he said.
USDEC also established partnerships with culinary influencers, who have extensive ties with retail and foodservice in the Middle East, Southeast Asia, Japan, South Korea and Taiwan. Culinary partnerships help amplify U.S. Dairy’s presence in these markets and raise the visibility of U.S. Dairy with aspiring and established chefs. “We also have doubled down on our promotions,” Vilsack stated, including significant marketing and promotions as a result of important partnerships, including Costco North Asia. This particular effort has extensively showcased U.S. cheese in China, Japan, South Korea and Taiwan, as well as Mexico. In addition to Costco promotions, a high-end food retailer in Japan has been promoting U.S. cheeses, which Vilsack pointed out recently received a huge promotional boost when a U.S. cheese for the first time ever won “Best in the World” and the U.S. won the most medals ever at the World Cheese Awards competition last October in France.
“We walked away with 131 medals and we also walked away with the determination that the Rogue Creamery in Oregon had the best cheese in the world, much to the chagrin of our French friends,” Vilsack said, adding the award provides an opportunity for the U.S. to further market award-winning cheeses overseas.
USA Cheese Guild / USA Cheese Specialist™ Certification Program Vilsack said USDEC has a long-term strategy to promote and market U.S. cheese to food leaders in key export markets. Called the USA Cheese Guild, “We are basically training and educating chefs and food industry professionals with a deeper knowledge of U.S. cheese.”
In 2019, three partners rolled out the USA Cheese Specialist curriculum for culinary students: Daelim University College in South Korea, Hattori Nutrition College in Japan and National
Kaohsiung University of Hospitality and Tourism in Taiwan. They joined the USA Cheese Specialist partner from 2018: the International Centre for Culinary Arts in Dubai.
Product Branding Branding is another ongoing emphasis. Our competitors such as New Zealand, Australia and European companies are very good at branding their products, but products from the United States have not been branded as well. “While a greater focus will be placed on cheese, we want a stronger branding of U.S. ingredients in the health and wellness area as well,” Vilsack added.
Sustainability “Sustainability is a story that the U.S. can tell better than anyone in the world,” Vilsack said.
According to Vilsack, much of the population in Asia is concerned about climate change and when hearing about U.S. Dairy efforts to decrease emissions, capture and convert methane gas and renewable farming practices, customer interest is piqued. He believes that U.S. Dairy’s sustainability record could be positioned as a unique selling point among customers.
“There are no producers—no producers—in the world that have the kind of message that you have,” Vilsack said. “You are the only producers using an internationally certified animal welfare system, the FARM program. Trust me when I say, this is something people are paying attention to, for sure, in the markets that we are interested in.”
USMCA and China According to Vilsack, the bottom line on the passage of the United StatesMexico-Canada Agreement (USMCA) is that the administration needs it, the House Democrats need it and the country needs it. As of early January, the U.S. House of Representatives approved the free trade agreement in late December and the FTA now awaits action in the Senate.
“I think there is a real bipartisan motivation on both sides to get this done.” Vilsack continued, “I think it will get done and when it does, obviously we will get the benefits of Canada’s Class 7 pricing system going away with a new pricing system in Canada that will provide greater access to U.S. dairy products. The trade deal also strengthens our relationship with Mexico and establishes new protections for common cheese names from the EU’s attempts to confiscate use of generic cheese terms such as parmesan and feta, said Vilsack.
Vilsack commented on China’s retaliatory tariffs saying that had the United States approached and addressed objections about China’s unfair trade practices with coalition of other countries, the U.S. government could have achieved more success and the retaliatory tariffs imposed by China could have been less damaging.
Results and Reasons for Optimism In the first few years, USDEC’s goals were more volume, more value and a greater percentage of production to the export market.
“All three of those goals were met,” Vilsack said. “On the volume side, anywhere from 150,000-300,000 metric tons more product has been sold.”
He also said the value has increased every year. “The first year it was roughly $600 million more in product and the second year it was roughly $750 million more and for the first nine months of 2019 we are up $970 million in U.S. exports.”
Despite the recent unanticipated market situations in retaliatory tariffs, increased competition from the EU and the Canadians establishing a Class 7 market, “We were still able to increase volume, increase value and increase percentage,” Vilsack said.
He also said there is a big reason for optimism in 2020: that being the opening of USDEC’s first-of-its kind U.S. Center for Dairy Excellence (CDE) in Singapore. Phase two of the five percent plan will be implemented next with the same goals of more volume, value and percentage going into the export market, but with a different approach.
The United States already owns about a 22% market share of Southeast Asia’s sizeable dairy import sector. We believe that by upgrading our capabilities in Southeast Asia, we can expand our market share to as much as one-third— worth about $100 million of additional business activity annually.
Vilsack said the CDE will serve as a venue and center that U.S. Dairy will utilize to engage and network with partners, promote collaboration with customers and serve as a resource for members active in Southeast Asia and Singapore, which Vilsack says is a research and development hub for beverage and food manufacturers in the region.
“This will allow us to display the versatility and incredible functionality of the products we produce for export,” he said.
