The border-to-border group convened to review and evaluate the preliminary information contained in “An Analysis of Programs to Reduce Dairy Price Stability.”  This complex new economic model has been designed to independently evaluate the long-term impact of national dairy policy proposals.

Dr. Mark Stephenson, UWM, and Dr. Chuck Nicholson, Cal Poly Obispo, collaborated in developing the long-anticipated models.   The interactive format of the meeting gave all participants the opportunity to question the study, provide feedback, and ensure that input figures are correct.  The developers were commended for the details and dimensions they had applied to the model structure.

The preliminary information is very credible, but due to the complex nature of the project, meeting participants concluded the models need a bit more evaluation and thought before widespread release.

All growth management scenarios were shown to reduce price volatility for farmers, a priority industry goal as constructive changes in national dairy policy move forward.

The Costa/Sanders Bill (formerly known as the DPSP and the Holstein Plan), NMPF’s Foundation for the Future, and the Marginal Milk Pricing Proposal were each measured using a variety of economic factors. Costa/Sanders has been introduced in the House as H.R. 5288, and in the Senate as S. 3531.

Gene Paul of the National Farmers Union noted   “We are going to have to answer three questions for dairy producers before this study is complete:  “How can volatility best be reduced? What price levels can be expected in the future?  How will individual farms and herd sizes be affected by any of the programs?”

The group will schedule their next meeting for early September, at which time a final review will take place and the results released.

This study was funded by a coalition of industry groups, including AgriMark, AMPI, Dairy Farmers Working Together, DFA, Holstein Association USA, the Milk Producers Council of California, National Farmers Organization, Northeast Dairy Leadership Team, Family Dairies USA, Northwest Dairy Association, and St. Albans Cooperative Creamery.

Bill Rowell, Sheldon, Vice President of Dairy Farmers Working Together (DFWT), spent three days with Julie Walker, TN, Doug Maddox and Steve Maddox of CA, Rob Vandenheuvel, Milk Producers Council, CA, meeting with members of the Dairy Caucaus and Agriculture leaders including Representative Colin Peterson of Minnesota.

During their visit to Washington, National Milk Producers Federation, held their Board Directors meeting and passed a resolution supporting the package of concepts supporting the Foundation for the Future policies.  A key component in the package is a production management program.  “We are excited and pleased that their is such strong concensus from our dairy leadership moving forward on this concept.  We are determined to continue to work over the next few weeks and months to ensure that our Vermont Industry is represented at the table as the details of these plans are worked out.” Bill Rowell stated in a brief telephone interview.

Julie Walker of TN, a new team member for DFWT, observed “The Southeast United States is a growing population center, and dairymen in our area believe consumers and the environment are benefitted when milk is sourced from local farms in any region.  Growth Management, properly implemented, should reduce the enormous amout of fossil fuels currently used to transport milk into the southeast from other areas of the country.  The growth management concept enables southeast dairy farms to not only be preserved today, but to grow in a financially sustainable manner that lenders appreciate. There is increasing support in the southeast for responsible growth management, and we are willing to work with dairy farmers from across the country to accomplish that goal.”

Walker owns cows that are milked on a fourth-generation family farm, and her family’s farm grows grains that end up in feed supplies for dairy farmers.  She owns AgriVoice Enterprises, a communications provider that serves progressive agribusinesses.

A national study commissioned by various cooperatives including AgriMark, St Albans Cooperative, Dairy Farmers Working Together, DFA, Holstein USA, AMPI, Darigold, Northeast Dairy Leadership Team, and Western United amongst others; is set to produce analysis on the variations of management programs out there in the coming weeks.

“We are anxious to see the results of those studies as are the other contributors and industry representatives.  This has been a long process, however, after our preliminary call with Mark Stephenson, I am quite pleased with the modeling they have put together.  It will provide us with as solid and complete economic analysis as we can get. The next step will be to meet as a national stakeholder group and review those results of the various programs and to determine on a national basis what management program and elements will work the best” stated Amanda St Pierre, Dairy Farmers Working Together. “It is imperative that with the national concensus we now have behind growth management that we work together to implement solid legislation that performs effectively with the right margins and triggers for our regions”

The Vermont Dairy Industry faces the biggest challenge it has seen in most recent years with the economic downturn and banking crisis which has impacted the family farms which contribute to the Vermont landscape and economic viablity of the state. More information on these proposals can be found at  www.stabledairies.com or www.dfwt.org.

Congressman Peter Welch

United States House of Representatives

FOR IMMEDIATE RELEASE

Wednesday, May 12, 2010

CONTACT:

Paul Heintz

202.226.8346 (o)

202.577.7970 (c)

Welch introduces bill to support dairy farmers, curb price volatility

WASHINGTON, DC – Rep. Peter Welch on Wednesday introduced legislation to support Vermont dairy farmers by promoting market stability and curbing price volatility in the dairy industry.

Welch first outlined the legislation in April at the McNall family farm in Fairfax, alongside leaders of the Vermont dairy industry. Supported by a broad coalition of dairy supporters, the Dairy Price Stabilization Act was written by Rep. Jim Costa (D-Calif.).

“Continuing volatility within the dairy industry has devastated Vermont’s hardworking family farmers and their counterparts across the country. We have responded with important short-term support measures, but we must not delay in finding a path to long term reform,” Welch said. “This bill sets an important marker as we find consensus within the industry about how to ensure the survival and prosperity of dairy.”

The Dairy Price Stabilization Act would help stabilize dairy prices by better aligning supply with demand. The legislation calls on the U.S. Department of Agriculture to determine on a quarterly basis the capacity for growth in the dairy market. Producers who exceed the percentage increase allowed by the USDA would pay a market access fee, which would be distributed to all dairy farmers. The program would help the market absorb increases in production by providing a tangible financial incentive for dairies to manage their production growth.

The bill empowers farmers by allowing them to vote on whether to enact the program and, three years after it commences, to vote on whether to continue it. Farmers would sit on a 30-member board that would advise the Secretary of Agriculture on the implementation of the program.

In 2009, dairy farms throughout the country experienced one of the worst price crises of the last 40 years. Last June, prices dropped to an average of $6 per hundredweight below the cost of production. In 2009, America’s roughly 65,000 dairies lost over $12 billion. Sharp losses forced dairy farmers to shutter their operations and lay off workers.

When he first outlined the legislation in April, Welch was joined by a group of statewide dairy leaders, including Vermont Secretary of Agriculture Roger Allbee, Amanda St. Pierre and Bill Rowell of Dairy Farmers Working Together, St. Albans Cooperative Creamery board president Ralph McNall, Agri-Mark director Robert Foster and representatives of Dairylea/Dairy Farmers of America.

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Read the whole story here.

January 18, 2010

In view of the fact that the American Farm Bureau (AFB) represents a cross section of agriculture in the United States, its voice is something of a barometer for policy decisions at the Congressional level.

The AFB held its annual meeting January 9 – 13 at the Washington State Convention & Trade Center in Seattle, Washington this year. Delegates represented all fifty states before an audience, which exceeded 5,000 attendees.

The diversity of agriculture represented at the meeting and AFB policy on the vast array of topics required a great deal of time, patience and consideration to move forward in the better interest of our country.

Finally, on Tuesday afternoon, the agenda came around to dairy and everyone recognized the plight of US Dairy Farmers. Supply Management came to a vote sending a clear message the

AFB would not support a control over production, which prevents the free market from working and effectively moves us towards Socialism. The vote was 227 against, 83 in favor.

While on the one hand supply management was viewed as a form of quota system with comparisons made to Canada and the Netherlands there was strong interest in CWT programs. Discussion on a mandatory CWT program resulted in a vote, favoring language that states the AFB strongly encourages participation in CWT, but does not endorse a mandatory program.

The AFB supports an improved pricing mechanism for dairy, for making the process more transparent, and for revision of Federal Milk Marketing Orders (FMMOs).

There was discussion on the cost of production, which came to a vote and recognized a need for the regional cost of production.

Lowering the Somatic Cell Count (SCC) to 400,000 was proposed by Wisconsin, the proposal met quick opposition from the Southeast, it was viewed as a competitive disadvantage due to heat and humidity, the SCC remains unchanged.

While we recognize we did not gain everything we wanted, we have identified a few tools to move the industry forward with a bit more clarity. We remain optimistic and encouraged for a positive outcome.

Respectfully Submitted,

Bill Rowell          Vermont

Tony DeGroot     California