California Ag Network

Category: Ag Economics

  • FARM Animal Care Program Announces Version 5 Survey Results

    The National Dairy Farmers Assuring Responsible Management (FARM) Program today shared the results of its Animal Care Version 5 Development Survey. The report summarizes stakeholder perspectives on animal care issues of importance and captures ideas and levels of support for potential changes to the industry’s animal care standards.

    “We are pleased with the level of engagement and the quality of feedback that we received from dairy farmers, veterinarians and other industry representatives that will help inform the development of FARM Animal Care Version 5,” said Emily Yeiser Stepp, vice president of the FARM Program. “We remain committed to ensuring updates made to the program reflect the needs and goals of the entire dairy supply chain.”

    FARM Animal Care is updated once every three years to ensure relevance to current industry best management practices and scientific research related to on-farm animal care. The survey received 682 responses from farmers, veterinarians, and dairy-industry leaders nationwide.

    Stakeholders identified care for sick animals, calves, and non-ambulatory cattle as dairy’s greatest priority to maintain focus on for Version 5. The survey also showed general support for making minor modifications and adding clarity to the program while avoiding large overhauls. Most survey respondents, including farmers, showed they would willingly support small changes to better address animal care vulnerabilities. Respondents also were in consensus that standards that aren’t direct measures of good animal welfare practices should be updated to prioritize an outcomes-based approach.

    The results of this survey will be used to inform all levels of governance of FARM and will help guide ongoing discussions about the development of Version 5. The National Milk Producers Federation Board of Directors provide final approval on FARM standards, which will come into effect starting July 1, 2024. For more information, visit the Version 5 development page.

    The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies.

    Created by the National Milk Producers Federation in partnership with Dairy Management Inc, the National Dairy FARM (Farmers Assuring Responsible Management) works with all U.S. dairy farmers, co-ops and processors, to demonstrate to dairy customers and consumers that the dairy industry is taking the very best care of cows and the environment, producing safe, wholesome milk and adhering to the highest standards of workforce development.

  • Deadline Extended for U.S. Dairy Sustainability Awards Nominations

    For more than a decade, the U.S. Dairy Sustainability Awards program has been celebrating dairy farms, businesses and partnerships for their dedication to advancing sustainability across the industry.

    The nominations period deadline for the 2022 U.S. Dairy Sustainability Awards has been extended to March 4.

    The farmer-founded Innovation Center for U.S. Dairy, which unites the industry through a shared social responsibility platform, launched the awards to honor exceptional farms, businesses and partnerships for their socially responsible, economically viable and environmentally sound practices and technologies that have a broad and positive impact.

    Nearly 80 farms, business and partnerships have been celebrated as winners and honorable mentions over the past 10 years. They serve as examples of the dairy industry’s commitment to social responsibility, including the 2050 Environmental Stewardship goals announced in 2020. Set by the Innovation Center through extensive industry and stakeholder collaboration, the goals are to achieve GHG neutrality, optimize water usage and improve water quality by 2050.

    “Sustainability Award winners epitomize the best of dairy sustainability and ingenuity, providing useful case studies for the dairy community as it moves forward to meet industrywide commitments, including dairy’s 2050 Environmental Stewardship goals,” said Barbara O’Brien, president and CEO of Dairy Management Inc. and the Innovation Center for U.S. Dairy. “We’re excited to see what innovations rise to the top with this year’s nominations.”

    Award submissions can be made at www.usdairy.com/2022Awards. There is no fee to enter. All farms, companies and organizations involved in the U.S. dairy industry and engaged in collaborative and sustainable dairy-related practices are eligible to submit nominations in the following categories:

    Dairy Farm Sustainability

    The Outstanding Dairy Farm Sustainability category recognizes farmers for practices and technologies that demonstrate exemplary economic, environmental and/or social benefits and continuous improvement in dairy production. Successful nominations take a holistic approach to sustainability and provide replicable results that can advance on-farm dairy leadership and inspire positive change industrywide.

    Processing and Manufacturing Sustainability

    The Outstanding Dairy Processing and Manufacturing Sustainability category recognizes demonstrated steps to innovate, measure and communicate progress within the triple bottom line of sustainability. It provides replicable success stories to benefit the dairy community and to inform continuous improvement industrywide.

    Community Impact

    The Community Impact category commends efforts that improve lives and communities through positive impacts on health and wellness, hunger relief, workforce development, community volunteering and investment, and/or environmental stewardship. Successful nominations demonstrate how farms, cooperatives, processors or other dairy community stakeholders (either collaboratively or as a single entity) develop practical and effective solutions to shared challenges and goals of the communities in which they live and work.

    Supply Chain Collaboration

    The Supply Chain Collaboration category celebrates collaborative and market-based partnerships to demonstrate that truly sustainable outcomes come when all parts of the supply chain are involved in finding solutions. This award highlights farm-to-fork engagement through a collaborative farm, cooperative processor, and/or retail/foodservice partnership to benefit all involved and to provide best-in-class examples of sustainable dairy supply chains.

    Finalists will be notified in April and the winners will receive:

    • An official commemorative plaque
    • Recognition via public relations and other promotional activities, including at an awards ceremony.
    • Opportunities to serve as a Dairy Sustainability Ambassador at key events
    • Use of the U.S. Dairy Sustainability Awards logo for marketing purposes for up to one year
    • Case studies of their stories featured on www.usdairy.com/awards

    An independent panel of judges evaluates all nominations based on measurable results, demonstrated innovation and learning, and the potential for other dairy farms and businesses to adopt the practices.

    About the Innovation Center for U.S. Dairy

    The Innovation Center for U.S. Dairy® is a leadership forum that brings together the dairy community and third parties to address the changing needs and expectations of consumers and customers. Initiated in 2008 by dairy farmers through the dairy checkoff, Innovation Center leaders and members collaborate on important areas like the environment, nutrition and health, animal care, food safety, and community contributions. Through the Innovation Center, the U.S. dairy community demonstrates its commitment to continuous improvement from farm to table, striving to ensure a socially responsible and economically viable dairy community. For more information, visit www.usdairy.com/about-us/innovation-center

  • California Olive Oil Grower Meeting, March 3

    Please join the Olive Oil Commission of California (OOCC) for California Olive Oil Day on March 3, 2022, at the Robert Cabral Agriculture Center in Stockton. During this meeting, industry experts and researchers will present information on the latest innovation and research critical to the production of top-quality extra virgin olive oil.

    The meeting will begin at 9 a.m. with a welcome from OOCC Executive Director, Chris Zanobini and Research Committee Chairman, Michael Fox.

    New research will be presented on several topics pertaining to olive orchard and disease management and best growing practices. These topics will include: water management strategies for hedgerow olive orchards in California: evaluation of canopy management practices on established Super High-Density olives for olive oil production: investigating young tree decline as a result of autumn frost events; epidemiology and management of olive knot; and evaluation of new fungicides in the control of olive leaf spot/peacock spot.

    The research in this session will be presented by Giulia Marino, Dept of Plant Science, University of California, Davis; Ciriaco Chavez, Boundary Bend; Mohammed Nouri, UC Cooperative Extension Orchard Systems Advisor, San Joaquin County; and James Adaskaveg, Professor, Dept of Plant Pathology, UC Riverside.

    Javier A Fernandez Salvador, Executive Director of the UC Davis Olive Center will then provide an update on the Center’s activities and Selina Wang will present findings of the Olive Center’s analysis of 2020 olive oil quality data collected as part of the OOCC’s mandatory sampling and testing program. Wang will also present findings from the Olive Center’s evaluation of fatty acid and sterol profiles.

    Wang will then provide reports on the UC Ag and Natural Resources Production Manual for Olive Oil and the latest findings from a study on utilizing olive pomace to make pavement. These presentations will be followed by an update on the establishment of benchmark data for the olive oil industry in California from Kyle J. Birchard of Integrative Economics, LLC.

    Attendees can also expect to hear updates from Kimberly Holding, CEO of the American Olive Oil Producers Association (AOOPA), and Shanna Rahman, Board Chair of the California Olive Oil Council (COOC).

    The day will conclude at 12:30 p.m. with lunch provided by the OOCC. To RSVP, please email anne@agamsi.com.

    Click here for the 2022 California Olive Oil Day Agenda. 

  • EPA Fines SJV Almond Grower for Clean Water Act Violations, Orders Restoration of Wetlands

    Today, the U.S. Environmental Protection Agency (EPA) announced a settlement with Edward Lynn Brown, owner of an almond orchard near Merced, California, for violations of the federal Clean Water Act that impacted more than two acres of rare vernal pool wetlands . The settlement requires Brown to pay $212,000 in civil penalties and restore and preserve 15 acres of wetland habitat.

    On March 14, 2019, EPA inspected the site. Inspectors determined that earth-moving activities by Brown had discharged fill material into waters that flow into the San Joaquin River. This work had been undertaken without obtaining a Clean Water Act Section 404 permit from the U.S. Army Corps of Engineers.

    “Grading and filling wetlands of the San Joaquin River Valley without proper permitting impacts water resources and endangers California’s unique native plants and animals,” said EPA Pacific Southwest Regional Administrator Martha Guzman. “In a time of drought and climate change, it is essential to protect these rare and vital water resources and habitats from destruction.”

    Brown’s earth-moving activities from 2016 to 2020 involved building a retention basin and access roads and planting a new almond orchard. The impacts from these activities resulted in the degradation of over two acres of vernal pool wetlands adjacent to Parkinson Creek, a tributary of the San Joaquin River that bisects the ranch. This work violated provisions of a previous 2014 EPA Order, which had required Brown to notify the U.S. Army Corps of Engineers of any proposed activity that may impact local water systems.

    A pond on the almond orchard that provides critical wetland habitat impacted by soil and sediment disturbances. (EPA photo)

    To mitigate these negative environmental impacts, under this settlement Brown has agreed to develop a plan for removing 1.9 acres of fill material, restoring, and enhancing 2.44 acres, and preserving 12.66 acres within an 81.39-acre area within the orchard.

    For more information on enforcement of Clean Water Act Section 309 visit: https://www.epa.gov/cwa-404/clean-water-act-section-309-federal-enforcement-authority.

    To view information on the 2014 Clean Water Act enforcement action, visit: https://archive.epa.gov/epapages/newsroom_archive/newsreleases/f7437d2c778475d685257d94006344bc.html.

    To view the 2014 public notice, visit: https://19january2017snapshot.epa.gov/www3/region9/enforcement/pubnotices/pubnotice-merced-ranch.html.

    To view the proposed settlement, visit: https://www.epa.gov/publicnotices/edward-lynn-brown-merced-ca-proposed-settlement-cwa-section-309g-class-ii

    To view the Consent Agreement and Final Order, visit: https://www.epa.gov/ca/cwa-09-2022-0007-edward-lynn-brown-merced-ca-proposed-settlement-cwa-section-309g-class-ii

    Learn more about EPA’s Pacific Southwest Region. Connect with us on Facebook and on Twitter.

  • Guidance for Industry on Enforcement Approach to Human Food with Chlorpyrifos Residues Following EPA Revocations

    Today the U.S. Food and Drug Administration released a guidance document titled Questions and Answers Regarding Channels of Trade Policy for Human Food Commodities with Chlorpyrifos Residues: Guidance for Industry. The guidance is intended to help food producers and processors who handle foods that may contain residues of the pesticide chemical chlorpyrifos. The Environmental Protection Agency (EPA) published a final rule on August 30, 2021, revoking all tolerances for chlorpyrifos; these tolerances are set to expire on February 28, 2022.

    This guidance is based on the channels of trade provision of the Federal Food, Drug, and Cosmetic Act and follows the policies explained in the FDA’s 2005 Guidance titled “Guidance for Industry: Channels of Trade Policy for Commodities with Residues of Pesticide Chemicals for Which Tolerances Have Been Revoked, Suspended, or Modified by the Environmental Protection Agency Pursuant to Dietary Risk Considerations.”

    Under the channels of trade provision, after the EPA tolerances expire, a food that contains chlorpyrifos residues is not deemed unsafe solely based on the presence of the residue as long as the chlorpyrifos was applied lawfully and before the tolerance expired, and the residue does not exceed the level permitted by the tolerance that was in place at the time of the application.

    The FDA is responsible for enforcing the EPA pesticide tolerances for domestic and imported foods, with the exception of meat, poultry, Siluriformes fish and fish products (catfish), and certain egg products that are regulated by the U.S. Department of Agriculture (USDA).

    The FDA’s approach has two phases and applies to both raw agricultural commodities and processed foods.

    • Stage 1: The Agency intends to exercise enforcement discretion by not requesting showing documentation for residues complying with previous tolerances for a time period ranging from approximately 6 to 24 months, depending on the specific commodity. This is based on our estimate of how long raw agricultural commodities would remain on the market (e.g., time for growing and postharvest storage, distribution, and sale).
    • Stage 2: The Agency will accept showing documentation that demonstrates that chlorpyrifos was applied before February 28, 2022. If the responsible party does not provide appropriate documentation, the food may be subject to regulatory action.

    The EPA final rule also revokes tolerances applicable to animal foods. Enforcement of residues in animal foods will be addressed by the FDA’s Center for Veterinary Medicine. Any matter involving USDA regulated foods would be handled by the USDA.

    The FDA has a public docket to receive comments on this guidance. You may submit electronic comments or written comments at any time.

    Public comments can be submitted electronically to https://www.regulations.gov/ using Docket ID: FDA-2016-D-4484. Written comments can be submitted to the Dockets Management Staff (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.

    For Additional Information:

  • Deadline Extended to Enroll in 2022 Dairy Margin and Supplemental Coverage

    USDA has extended the deadline to enroll in Dairy Margin Coverage (DMC) and Supplemental Dairy Margin Coverage (SDMC) for program year 2022. The deadline to apply for 2022 coverage is now March 25, 2022. As part of the Biden-Harris Administration’s ongoing efforts to support dairy farmers and rural communities, USDA’s Farm Service Agency (FSA) opened DMC and SDMC signup in December 2021 to help producers manage economic risk brought on by milk price and feed cost disparities.

    “Over the past two years, American dairy farmers have faced unprecedented uncertainty, from the ongoing pandemic to protracted natural disasters. As producers continue to manage these interconnected challenges, FSA has tools at the ready to provide critical support,” said FSA Administrator Zach Ducheneaux. “We are encouraging dairy operations to take advantage of the extended deadline and join the 8,969 operations that have already enrolled for 2022 coverage. At 15 cents per hundredweight at the $9.50 level of coverage, DMC is a very cost-effective risk management tool for dairy producers.”

    Enrollment for 2022 DMC is currently at 55% of the 2021 program year enrollment. Producers who enrolled in DMC for 2021 received margin payments each month, January through November for a total of $1.2 billion, with an average payment of $60,275 per operation.

    The DMC program, created by the 2018 Farm Bill, offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production. Now, they will be able to retroactively receive payments for that supplemental production. Additionally, FSA updated how feed costs are calculated, which will make the program more reflective of dairy producers’ actual expenses.

    Supplemental DMC Enrollment

    Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds based upon a formula using 2019 actual milk marketings, which will result in additional payments. Producers will be required to provide FSA with their 2019 Milk Marketing Statement.

    Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Participating dairy operations with supplemental production may receive retroactive supplemental payments for 2021 in addition to payments based on their established production history.

    Supplemental DMC will require a revision to a producer’s 2021 DMC contract and must occur before enrollment in DMC for the 2022 program year. Producers will be able to revise 2021 DMC contracts, apply for 2022 DMC, and enroll in other FSA programs by contacting their local USDA Service Center.

    DMC 2022 Enrollment

    After making any revisions to 2021 DMC contracts for Supplemental DMC, producers can sign up for 2022 coverage. DMC provides eligible dairy producers with risk management coverage that pays producers when the difference between the price of milk and the cost of feed falls below a certain level. In 2021, based on data to date, DMC payments have triggered for January through November for more than $1 billion.

    For DMC enrollment, producers must certify with FSA that the operation is commercially marketing milk, sign all required forms and pay the $100 administrative fee. The fee is waived for farmers who are considered limited resource, beginning, socially disadvantaged, or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.

    Updates to Feed Costs

    USDA has also changed the DMC feed cost formula via final rule published on December 13, 2021, to better reflect the actual cost dairy farmers pay for high-quality alfalfa hay.  FSA now calculates payments using 100% premium alfalfa hay rather than 50%. In December 2021, following publication of the new feed cost policy, $102 million was paid to producers as a result of the revised high quality alfalfa feed cost formula.

    The amended feed cost formula will make DMC payments more reflective of actual dairy producer expenses.

    More Information

    For more information, producers can visit the FSA dairy programs webpage, or contact their local USDA Service Center. To locate their local FSA office, producers can visit farmers.gov/service-center-locator. Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Due to the pandemic, some USDA Service Centers are open to limited visitors.  Additionally, more information related to USDA’s response and relief for producers can be found at  farmers.gov/coronavirus

  • Record US Dairy Exports in 2021, Assistance Still Needed to Ease Supply Chain Challenges

    According to USDA today, 2021 U.S. farm and food products to the world totaled $177 billion, topping the 2020 total by 18 percent and eclipsing the previous record set in 2014 by 14.6 percent. Moreover, U.S. agricultural exports logged 230.7 million metric tons of volume in 2021, another record.

    “Today’s export figures demonstrate how the United States is poised to become the world’s leading supplier of dairy products thanks to the resilience and innovation of American dairy exporters and dairy foods companies,” shared Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association.  “Consumers in the United States and around the world continue to demand more U.S. dairy because we provide an assortment of delicious, nutritious, affordable, and sustainable dairy products. From high-value whey to award-winning cheeses, from milk powders used to make life-saving products for children and adults to safe and nutritious ESL milk, U.S. dairy is known throughout the world for quality and reliability.

    Dykes continued, “As we dig into the export data released today, we see that U.S. dairy exports hit a record $7.66 billion in 2021, outperforming the previous record of $7.08 billion achieved in 2014. Volume also set a new high, reaching 2.69 million metric tons to outpace the previous record of 2.44 million metric tons set in 2020.

    “Outstanding results like (this) in U.S. dairy exports don’t happen overnight. They’re the result of a lot of hard work by our industry to build demand for U.S. dairy products around the world and harness the opportunities that past trade deals – from U.S. free trade agreements to the World Trade Organization’s Uruguay Round – have made available,” said Krysta Harden, president and CEO of the U.S. Dairy Export Council. “We look forward to continuing to build on this success further and to ensure we have the right trade and export supply chain policy tools to support that growth.”

    “The record demand for U.S. milk overseas in 2021 is a testament to the hard work and dedication of U.S. dairy farmers and the entire industry to making sure our high-quality, nutritious products feed the world as well as Americans,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “As we’ve said many times, exports represent the next frontier for U.S. dairy – it’s gratifying to see decades of effort bear fruit and only makes us more excited about the future successes ahead.”

    “While today’s news is certainly cause for celebration among U.S. food and agriculture, exporters throughout the dairy industry remain severely challenged by supply chain challenges that have hampered our ability to export more product, fulfill obligations to customers, and meet the world’s growing demand for U.S. dairy,” Dykes clarified.  “According to industry estimates, export delays and supply chain challenges have cost the dairy industry more than $1.5 billion in lost opportunities. Through the IDFA Supply Chain Task Force and Dairy Exports Working Group, IDFA members and partners continue to look for long-term solutions to help U.S. dairy exports reach greater heights in the months and years ahead. We encourage the Biden Administration to remain active in removing bottlenecks, investing in infrastructure, and looking at public-private solutions to ease supply chain challenges.”

  • California Dairy Producer Shares Sustainability Message at House Ag Hearing

    National Milk Producers Federation (NMPF) Board of Directors member and California dairy producer Melvin Medeiros told a House Agriculture subcommittee that dairy farmers have made significant sustainability gains and stand ready to serve environmental solutions to make even further progress.

    “U.S. dairy farmers are environmental stewards. We tend with great care to our land and water to improve the resources on our farms and ensure future generations can carry on our important work of feeding the nation and the world,” said Medeiros, a member of the Dairy Farmers of America cooperative who serves on NMPF’s Executive Committee, in a hearing of the House Agriculture Committee’s Subcommittee on Livestock and Foreign Agriculture.

    “We value a proactive approach to sustainability, which can take many different forms, and we have adapted as agricultural practices and technologies have evolved and improved over time,” said Medeiros, who owns and operates a 1,600-cow dairy near Merced, CA. “Farmers place a high importance on land and water stewardship, and our family farm-owners continue to perfect these practices through sustainable innovations on the farm.”

    Medeiros in his testimony at the virtual hearing cited research showing that producing a gallon of milk in 2017 required 30% less water, 21% less land, had a 19% smaller carbon footprint, and produced 20% less manure than it did in 2007. He also cited dairy’s Net Zero Initiative as an example of proactive, producer-led agricultural leadership in reducing greenhouse gas emissions.

    Medeiros also asked lawmakers to support policy improvements that would assist producers in sustainability efforts, such as enhanced funding for conservation programs with greater emphasis on areas like feed and manure management, an investment tax credit to cover the upfront capital costs of digesters to help reduce methane emissions, and expedited approval of innovative animal feed additives that can significantly diminish enteric emissions. NMPF has previously hailed the landmark conservation funding increases in the Build Back Better Act and hopes that Congress will provide the funding needed to bolster these critical programs.

    NMPF worked closely with Medeiros and DFA to help strongly spotlight the dairy industry’s priorities and concerns during the hearing.

    “NMPF and the dairy producers it represents are grateful to the House Agriculture Committee for inviting Melvin to highlight dairy’s commitment to a more sustainable future,” said Jim Mulhern, President and CEO of NMPF. “But as he noted, improving sustainability will also require improving public policy to aid farmers in their critical stewardship mission. We stand ready to partner with Congress to get the job done.”

    About the National Milk Producers Federation

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

  • Sacramento Valley Processing Tomato Production Meeting, Feb. 10

    The UC Cooperative Extension (Colusa, Sutter, Yuba, Yolo, Solano & Sacramento Counties) invites growers to attend the 2022 Sacramento Valley Processing Tomato Production Meeting virtually (Zoom) on February 10th from 9:00-11:40 a.m.  DPR and CCA Continuing Education Credits have been requested. Registration is free and can be done online HERE.  Some of the topics of discussion will include: broomrape biology & management, automation with mechanical in-row cultivators for conventional processing tomatoes, root knot nematode management, and the unusual outbreak of beet curly top in 2021. Click HERE to see the full agenda.

  • Annual Sweetpotato Growers Meeting, Feb. 15

    Growers are excited to be gathering back in-person for the 56th annual Sweetpotato meeting held by the UC Cooperative Extension in the UCCE Classroom at 2145 Wardrobe Ave. in Merced, CA. The Sweetpotato Council of California will also be holding their business meeting right after. Due to current Covid rules, face masks will be required to be worn throughout the meeting. Attendees are invited to come and sign in at 7:30 a.m. and enjoy some coffee and Jantz Sweetpotato muffins.  The meeting with end at noon with lunch.  Presenters will include: UCCE Farm Advisor Scott Stoddard, Assistant Merced County Ag Commissioner Sean Runyon, Brian Hegland from Teleos Ag Solutions, Jill Silverman Hough from the Sweet Potato Council of California, Robert Drozdowski from AgriControl Technologies, and Darren Barfield from the Sweet Potato Council. DPR and CCA Continuing Education Credits have been requested. Click HERE for the full agenda.