California Ag Network

Category: Dairy Industry

  • USDA Opens 2020 Enrollment for Dairy Margin Coverage Program

    Dairy producers can now enroll in the Dairy Margin Coverage (DMC) for calendar year 2020. USDA’s Farm Service Agency (FSA) opened signup today for the program that helps producers manage economic risk brought on by milk price and feed cost disparities.

    “We know it’s tough out there for American farmers, including our dairy producers,” said Bill Northey, Under Secretary for Farm Production and Conservation. “As Secretary Perdue said, farmers are pretty good at managing through tough times, and we know that more dairy farmers will be able to survive with this 2018 Farm Bill and its risk mitigation measures, like the Dairy Margin Coverage program.”

    The DMC program 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. The deadline to enroll in DMC for 2020 is Dec. 13, 2019.

    Dairy farmers earned more than $300 million dollars from the program in 2019 so far. Producers are encouraged to take advantage of this very important risk management tool for 2020.

    All producers who want 2020 coverage, even those who took advantage of the 25 percent premium discount by locking in the coverage level for five years of margin protection coverage are required to visit the office during this signup period to pay the annual administrative fee.

    “Dairy producers should definitely consider coverage for 2020 as even the slightest drop in the margin can trigger payments,” said Northey. “Dairy producers should consider enrolling in DMC to guard against what has been, for several years, an extremely unforgiving market.”

    More Information

    The 2018 Farm Bill created DMC, improving on the previous safety net for dairy producers. DMC is one of many programs that FSA and other USDA agencies are implementing to support America’s farmers.

    For more information on enrolling in DMC and taking advantage of an online dairy decision tool that assists producers in selecting coverage for 2020, visit the DMC webpage.

    For additional questions and assistance, contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

  • Real California Milk Accelerator Competition to Drive Innovation in Dairy Milk Category

    Milk-based beverages for active kids and ready-to-drink lattes with collagen are among the nine finalists announced recently in the California Milk Advisory Board’s (CMAB) Real California Milk Accelerator dairy startup competition designed to inspire ideas integrating the values of fluid milk into contemporary products and provide resources to help bring them to market.  The competition, launched in 2019, aims to inspire innovation and investment in fluid milk products, packaging and capacity within California by connecting manufacturers, producers, investors, ideas and entrepreneurs for high quality, sustainable dairy beverages.

    The nine innovators will receive up to $25,000 of support each to develop protocepts while receiving elite mentorship from marketing, packaging, and distribution experts, including a business development trip the week of October 14 to tour California dairy farms and production facilities and meet with industry leaders to help facilitate their new ventures. The final competition will take place live on Thursday, November 7 in the San Francisco Bay Area, culminating in a grand prize winner who will receive up to $250,000 worth of additional support to deliver their new product to market.

    Finalists include:

    1. Bears Nutrition Daily Nutritional Milk Beverage for Active Kids
    2. WheyUp Protein Dairy Beverage with 12 Live and Active Probiotic Cultures and Whey Protein
    3. Good Citizens Ready to Drink Latte with Collagen
    4. Thai Star Brewing Co. Thai Star Iced Tea
    5. Nutraberry Upcycled High Fiber Polyphenol Milk Protein Beverage
    6. NAICHA Milk Tea w/Probiotics and Vitamins
    7. ALLPUR FIZZA Sparkling Dairy Nutrient Refresher
    8. Cheese Yogurt Fermented Dairy Beverage
    9. Stuyt Dairy Dairy-Based Dessert Beverage

    “The number and quality of entries received is a testament to the vibrancy of the beverage category and proves the desire of product developers to tap into the unique natural goodness of milk to meet consumer cravings for beverages that are not only healthy but taste great,” said John Talbot, CEO of the CMAB.

    VentureFuel, Inc., a leading innovation consultancy, is working with CMAB to find, identify and mentor the best emerging startups from their global network of investors, founders and academics to drive first-to-market innovation for the dairy space.

    “This competition has created an opportunity for cutting-edge technologies and dynamic entrepreneurs to drive innovation for a product that has been a household staple for generations,” said Fred Schoenberg, CEO and Founder of VentureFuel. “CMAB’s vision, combined with the ingenuity of the nine selected pioneering startups, sets the stage to educate the public regarding milk’s true nutritional benefits, and re-introduce it to the marketplace in inspired and engaging ways that connect with the public’s current and evolving tastes.”

    More than 1,200 family dairy farms produce the California milk found in fluid milk, cheese, butter, yogurt, ice cream and other dairy products identified by the Real California Milk seal. California is the nation’s largest dairy producer.

    Competition information is available at: https://www.venturefuel.net/milk-accelerator.

    About Real California Milk/California Milk Advisory Board

    The California Milk Advisory Board (CMAB), an instrumentality of the California Department of Food and Agriculture, is funded by the state’s dairy farm families and is one of the largest agricultural marketing boards in the United States. With a mission to increase demand for products made with Real California Milk, the CMAB is celebrating 50 years in 2019 promoting California’s sustainable dairy products in the state, across the U.S. and around the world through advertising, public relations, research, and retail and foodservice promotional programs. For more information and to connect with the CMAB, visit RealCaliforniaMilk.com,Facebook, YouTube, Twitter, Instagram and Pinterest.

     About VentureFuel, Inc.
    VentureFuel helps established companies around the world unlock growth by partnering with emerging startups and breakthrough technologies. Our innovation programs solve specific challenges, deliver tangible results and discover first-to-market opportunities from the Museum of Ice Cream to the latest pioneering technologies. We are 100% independent, sourcing from our global network of the best investors, scouts, founders and academics. Learn more at: www.venturefuel.net.

  • Genome-Edited Bull Passes on Hornless Trait to Calves

    For the past two years, researchers at the University of California, Davis, have been studying six offspring of a dairy bull, genome-edited to prevent it from growing horns. This technology has been proposed as an alternative to dehorning, a common management practice performed to protect other cattle and human handlers from injuries.

    UC Davis scientists have just published their findings in the journal Nature Biotechnology. They report that none of the bull’s offspring developed horns, as expected, and blood work and physical exams of the calves found they were all healthy. The researchers also sequenced the genomes of the calves and their parents and analyzed these genomic sequences, looking for any unexpected changes.

    All data were shared with the U.S. Food and Drug Administration. Analysis by FDA scientists revealed a fragment of bacterial DNA, used to deliver the hornless trait to the bull, had integrated alongside one of the two hornless genetic variants, or alleles, that were generated by genome editing in the bull. UC Davis researchers further validated this finding. 

    “Our study found that two calves inherited the naturally occurring hornless allele and four calves additionally inherited a fragment of bacterial DNA, known as a plasmid,” said corresponding author Alison Van Eenennaam, with the UC Davis Department of Animal Science.

    Plasmid integration can be addressed by screening and selection, in this case, selecting the two offspring of the genome-edited hornless bull that inherited only the naturally occurring allele.  “This type of screening is routinely done in plant breeding where genome editing frequently involves a step that includes a plasmid integration,” said Van Eenennaam.

    Van Eenennaam said the plasmid does not harm the animals, but the integration technically made the genome-edited bull a GMO, because it contained foreign DNA from another species, in this case a bacterial plasmid.  “We’ve demonstrated that healthy hornless calves with only the intended edit can be produced, and we provided data to help inform the process for evaluating genome-edited animals,” she said. “Our data indicates the need to screen for plasmid integration when they’re used in the editing process.”

    Since the original work in 2013, initiated by the Minnesota-based company Recombinetics, new methods have been developed that no longer use donor template plasmid or other extraneous DNA sequence to bring about introgression of the hornless allele. 

    Scientists did not observe any other unintended genomic alterations in the calves, and all animals remained healthy during the study period. Neither the bull, nor the calves, entered the food supply as per FDA guidance for genome-edited livestock.

    Why the Need for Hornless Cows?

    Many dairy breeds naturally grow horns. But on dairy farms, the horns are typically removed, or the calves “disbudded” at a young age. Animals that don’t have horns are less likely to harm animals or dairy workers and have fewer aggressive behaviors. The dehorning process is unpleasant and has implications for animal welfare. Van Eenennaam said genome-editing offers a pain-free genetic alternative to removing horns by introducing a naturally occurring genetic variant, or allele, that is present in some breeds of beef cattle such as Angus.

    Other authors in the study include Amy Young, Tamer Mansour, Bret McNabb, and C. Titus Brown, with the UC Davis School of Veterinary Medicine; and Joseph Owen, and Josephine Trott, with the UC Davis Department of Animal Science. This work was supported by Biotechnology Risk Assessment Grant Program from the U.S. Department of Agriculture to ALV, the Gordon and Betty Moore Foundation’s Data-Driven Discovery Initiative, and the California Agricultural Experiment Station of the University of California, Davis.

    By Amy Quinton, UC Davis, Food & Agriculture

  • Cheese May Be Good for Blood Circulation

    Cheese is much more than just food. It is a part of the compelling story of ancient and modern human civilization. The huge range of cheeses today reflects the diversity of human taste and history. Cheese types also became a metaphor for public opinion. As Charles de Gaulle frustratingly said, “How can you govern a country (France), which has 246 varieties of cheese.” Adding to this impressive résumé of achievements, investigators recently demonstrated that natural cheese may also be good for blood circulation in older adults.

    A Brief History of Cheese

    People at the dawn of civilization realized that milk from livestock quickly spoiled and became unsuitable for human consumption. All that nutrition and energy in milk could be wasted at a time when the next meal was often uncertain. Cheese was the solution to this problem as it provided a convenient and long-term means of concentrated storage of the nutrients in milk. Cheese could be eaten when times were tough or traded when plentiful.

    About 20–30% of cheese is protein, which, when digested into its constituent amino acids, is the basic building material for human growth, development, and metabolism in the young, and body maintenance in adults. Cheese also has fats that provide energy. Why is cheese storable for long periods? Initially in the process, cheese makers add special bacterial species to milk, which live on the sugar (lactose) in milk and ultimately give each cheese type its characteristic taste. Depletion of the lactose in the milk by these added bacteria makes it hard for other spoilage bacteria to live. Later in the process, the cheese maker adds salt and removes moisture, which also prevents spoilage. Salt is an excellent food preservative, but today it is known that too much dietary salt is bad for a person’s health.

    Health Benefits of Dairy Products

    Multiple groups of investigators who examined results from many scientific experiments and clinical trials conclude that the currently recommended level of dairy food consumption is linked with decreased risk of cardiovascular disease (CVD). CVD is a broad class of diseases that affect the heart or blood vessels and includes coronary heart disease, stroke, heart failure, and high blood pressure. The American Heart Association recently reported that CVD in the USA affected nearly half of the adult population in 2016 and it is the leading cause of death in the world. Sobering statistics! The greatest risk factor for CVD is age, but diet and lifestyle are strong and modifiable risk factors. There is not much that can be done about ageing, but modifiable risk factors point toward practical ways of reducing the incidence of CVD. Most people eat far less than the recommended level of dairy products in their diets, especially the elderly, and hence are at greater risk of CVD.  Scientists have also demonstrated that eating the recommended amount of dairy food each day improves cardiovascular health by lowering blood pressure and reducing arterial stiffness.

    Health authorities may be able to reduce the incidence of CVD by better promoting their recommendation that people eat three dairy servings each day, with a focus on low-fat dairy products. But it’s not that simple. Some dairy products like cheese contain salt, which when present in non-dairy foods is a risk factor for CVD. Unexpectedly, a recent clinical trial demonstrated there is something special about cheese consumption. It preserves normal blood flow in very small blood vessels in healthy elderly people with normal blood pressure, despite their high-salt diet. Turophiles (cheese lovers) should celebrate!

    The Salt of It

    Scientists in many investigations conclude that too much dietary salt, or sodium chloride, reduces the kidneys’ ability to remove water, which results in extra fluid in the blood, increased blood pressure, and a chronic strain on major blood vessels. An excess of salt in a diet also independently affects the functions of very small blood vessels by reducing blood capillary density in tissues, changing the capillary internal structure, and altering the responsiveness of capillaries to normal chemical regulatory signals. Scientists suggest that these latter effects in small blood vessels are not well understood and could be a warning of future CVD risk for people who have normal blood pressure. The United States Department of Health and Human Services and the United States Department of Agriculture indicate that most people in the USA far exceed their recommended daily intake of salt. Although dairy products decrease the risk of CVD, scientists suggest that it is important to independently measure the effect of cheese consumption by elderly people on both low- and high-salt diets.

    Cheese is Good for Blood Circulation

    Billie Alba and five colleagues from Pennsylvania State University and the Ohio State University recently published results from a clinical trial assessing the impact of cheese on blood microcirculation in an elderly but healthy population averaging 64 years of age. Although the number of people assessed in the clinical trial was small, the results were very interesting, and potentially very useful.

    The clinical trial was a turophile’s dream come true. The participants in the trial who were lucky enough to be allocated to the right group on day one received a choice of excellent natural cheeses, four times a day and were also given a controlled diet containing either high or low quantities of salt. Others were initially not so lucky. They received only the high- or low-salt diet but no cheese, to rub salt into the wound. At the end of seven days on the diets, the investigators assessed the participants for their levels of a range of factors including blood pressure, urinary sodium, and several blood components. The investigators also measured dilation (expansion) of very small blood vessels in the arm in response to a range of concentrations of a normal signalling chemical, acetylcholine. They explained that the latter measurement assessed a normal function of small blood vessels, i.e., localized microvascular response to acetylcholine. The inability of very small blood vessels to dilate, possibly due to stiffness, may be an early indicator of increased risk of CVD. After a week’s rest, the groups were swapped to a different diet by the investigators and again assessed for their responses after seven days. In this way, each participant received each of the four diets (low-salt, low-salt with cheese, high-salt, and high-salt with cheese). Thankfully, all participants eventually sampled the variety of cheeses on offer.

    The investigators ensured that the four diets contained equal quantities of total fat, carbohydrate, and protein to control for the additional nutrients in cheese. Importantly, the clinical trial was “blinded” to the investigators, i.e., the core investigators did not know who was receiving a specific diet at any time in the trial. This design feature prevents inherent investigator bias creeping into the experimental data.

    The first result that captured the investigator’s attention was the amount of urinary sodium excreted by the trial participants on both high-salt diets. It was about three times greater than that for participants on the two low-salt diets. That’s a big difference. The kidneys of the elderly participants were certainly working well! Moreover, as the investigators reported that the blood pressure of the participants was largely unaffected by the high-salt diets, all the elderly participants except one were classed as “salt-insensitive.” This result independently confirmed an important selection criterion used for the original enlistment of participants in the clinical trial, i.e., the participant blood pressure had to be normal and unaffected by salt. The investigators removed the person who was salt-sensitive from the trial and one other person for noncompliance with the diets.

    The investigators then demonstrated that microvascular dilation in response to localized administration of acetylcholine in the arm was diminished on the high-salt diet compared with either the low-salt diet or the low-salt diet with cheese. This result demonstrated that the high-salt diet (without cheese) compromised normal microvascular function even though the participants had normal blood pressure. Perhaps this was an early warning sign. The exciting result was that microvascular function for the participant group receiving the high-salt diet and cheese was the same as for the groups on the low-salt diet or the low-salt diet with cheese. Thus, consuming cheese with the high-salt diet somehow neutralized the adverse effects of the high-salt diet on microvascular function, despite the cheese containing salt. What’s so special in cheese?

    Alba and colleagues also investigated the mechanism underlying the beneficial effect of cheese in healthy people on a high-salt diet. Their experiments and results from other scientists led Alba and colleagues to conclude that dairy proteins in cheese prevented salt-induced oxidative stress in small blood vessels. Oxidative stress in the body results from an imbalance between free radicals and anti-oxidant chemicals. Free radicals are highly reactive small molecules that indiscriminately alter nearby molecules carrying out important biological functions. Cheese proteins tipped the oxidative balance against free radicals leading to less molecular damage and maintenance of normal biological function.

    Implications

    It’s hard to change a lifetime of dietary habits. Some are bad, like a high-salt diet. But there is hope. The incorporation of the recommended amount of natural cheese into a high-salt diet “may be an effective strategy to reduce cardiovascular disease in salt-insensitive, older adults” with normal blood pressure and no other health problems. The cheese résumé just became more impressive. Pass the Gouda and Edam, please!

    Contributed By Dr. Ross Tellam (AM), Research Scientist, International Milk Genomics Consortium

  • New Signup Deadline for Dairy Margin Coverage is September 27

    The U.S. Department of Agriculture (USDA) today extended the deadline to September 27 for dairy producers to enroll in the Dairy Margin Coverage (DMC) program for 2019. The deadline had been September 20.

    Authorized by the 2018 Farm Bill and available through USDA’s Farm Service Agency (FSA), the program 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.

    “More than 21,200 dairy operations have already signed up for DMC, but we’re providing an additional week to help ensure interested producers have time to come into the office,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “With smaller margins and increased feed costs, DMC has resulted in almost $230 million in payments disbursed. I know that some farmers may still be cautious given their experiences with former dairy support programs, but producers who have not signed up yet should come into a local office to learn how much money the program can put into their pockets.”

    Almost half of the producers who have signed up so far are taking advantage of the 25 percent premium discount by locking in for five years of margin protection coverage. FSA has launched a new web visualization of the DMC data, which is available here.

    Margin payments have triggered for each month from January through July. Dairy producers who elect higher coverage levels could be eligible for payments for all seven months. Under certain levels, the amount paid to dairy farmers will exceed the cost of the premium.

    For example, a dairy operation that chooses to enroll for 2019 with an established production history of 3 million pounds (30,000 cwt.) and elects the $9.50 coverage level on 95 percent of production will pay $4,275 in total premium payments for all of 2019 and receive $15,437.50 in DMC payments for all margin payments announced to date. Additional payments will be made if calculated margins remain below the $9.50/cwt. level for any remaining months of 2019.

    “My message to those dairy producers who are hurting out there: Don’t leave this kind of financial assistance on the table,” said Northey, who announced the deadline extension today as part of a hearing in front of the U.S. House of Representatives Committee on Agriculture. “Producers across the country have told us that DMC is a great risk management tool that works well, and it can work for you, too.”

    More Information

    On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation.

    For more information, visit farmers.gov DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

  • Dairy Producers Must Sign-Up Before Sept. 20 for 2019 Coverage

    WASHINGTON, Aug. 19, 2019 — The U.S. Department of Agriculture (USDA) today announced that producers of nearly 17,000 dairy operations have signed up for the Dairy Margin Coverage (DMC) program since signup opened June 17. Producers interested in 2019 coverage must sign up before Sept. 20, 2019.

    DMC offers 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.

    “We’re encouraged by the number of dairy producers who have signed up for this new program, but we are hopeful that we will get more folks in the door,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation.“At this point in the signup process, we are well ahead of the number of producers covered at this time last year under the previous safety net program, with more producers enrolling every day. As we move into the homestretch, we expect more producers across the country to get coverage through DMC and our team at FSA is really going above and beyond to make sure we get the word out there, the returns this year to-date should speak for themselves.”

    In June, when the DMC signup was announced, Secretary Perdue said, “For many smaller dairies, the choice is probably a no-brainer as the retroactive coverage through January has already assured them that the 2019 payments will exceed the required premiums.”

    To date, more than 60 percent of dairies with established production histories have enrolled in the program. Wisconsin has seen the most participants with more than 4,832 dairy operations, followed by Minnesota (1,865), New York (1,779), Pennsylvania (1,511) and Michigan (702).

    USDA’s Farm Service Agency (FSA) began issuing program payments to producers on July 11. DMC provides coverage retroactive to Jan. 1, 2019. The producers who have signed up to date will receive more than $219.7 million in payments for January through June, when the income over feed cost margin was $8.63 per hundredweight (cwt.), triggering the sixth payment for eligible dairy producers who purchased the $9 and $9.50 levels of coverage under DMC.

    To view weekly enrollment, production and payment reports (posted each Monday at 2 p.m. Eastern), visit FSA’s DMC webpage.

  • USDA Announces Details of Support Package for Farmers

    U.S. Secretary of Agriculture Sonny Perdue today announced further details of the $16 billion package aimed at supporting American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals.

    In May, President Trump directed Secretary Perdue to craft a relief strategy in line with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. The Market Facilitation Program (MFP), Food Purchase and Distribution Program (FPDP), and Agricultural Trade Promotion Program (ATP) will assist agricultural producers while President Trump works to address long-standing market access barriers.

    “China and other nations have not played by the rules for a long time, and President Trump is the first President to stand up to them and send a clear message that the United States will no longer tolerate unfair trade practices,” Secretary Perdue said. “The details we announced today ensure farmers will not stand alone in facing unjustified retaliatory tariffs while President Trump continues working to solidify better and stronger trade deals around the globe.

    “Our team at USDA reflected on what worked well and gathered feedback on last year’s program to make this one even stronger and more effective for farmers. Our farmers work hard, are the most productive in the world, and we aim to match their enthusiasm and patriotism as we support them,” Secretary Perdue added.

    Background:

    American farmers have dealt with unjustified retaliatory tariffs and decades of non-tariff trade disruptions, which have curtailed U.S. exports to China and other nations. Trade damages from such retaliation and market distortions have impacted a host of U.S. commodities. High tariffs disrupt normal marketing patterns, raising costs by forcing commodities to find new markets. Additionally, American goods shipped to China have been slowed from reaching market by unusually strict or cumbersome entry procedures, which affect the quality and marketability of perishable crops. These boost marketing costs and unfairly affect our producers. USDA is using a variety of programs to support American farmers, ranchers, and producers.

    Participating in the Trade Mitigation Call – Agriculture Secretary Sonny Perdue, USDA Chief Economist Rob Johansson, Under Secretary for Farm Production and Conservation Bill Northey, Acting Deputy Under Secretary for Food, Nutrition, and Consumer Services Brandon Lipps.

    Details of USDA’s Market Facilitation Program (MFP)

    MFP signup at local FSA offices will run from Monday, July 29 through Friday, December 6, 2019.

    Payments will be made by the Farm Service Agency (FSA) under the authority of the Commodity Credit Corporation (CCC) Charter Act to producers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton, and wheat. MFP assistance for those non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019. Those per-acre payments are not dependent on which of those crops are planted in 2019. A producer’s total payment-eligible plantings cannot exceed total 2018 plantings. County payment rates range from $15 to $150 per acre, depending on the impact of unjustified trade retaliation in that county.

    Dairy producers who were in business as of June 1, 2019, will receive a per hundredweight payment on production history, and hog producers will receive a payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.

    MFP payments will also be made to producers of almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts. Each specialty crop will receive a payment based on 2019 acres of fruit or nut bearing plants, or in the case of ginseng, based on harvested acres in 2019.

    Acreage of non-specialty crops and cover crops must be planted by August 1, 2019 to be considered eligible for MFP payments.

    The MFP rule and a related Notice of Funding Availability will be published in the Federal Register on July 29, 2019, when signup begins at local FSA offices. Per-acre non-specialty crop county payment rates, specialty crop payment rates, and livestock payment rates are all currently available on farmers.gov.

    MFP payments will be made in up-to three tranches, with the second and third tranches evaluated as market conditions and trade opportunities dictate. If conditions warrant, the second and third tranches will be made in November and early January, respectively. The first tranche will be comprised of the higher of either 50 percent of a producer’s calculated payment or $15 per acre, which may reduce potential payments to be made in tranches two or three. USDA will begin making first tranche payments in mid-to-late August.

    MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments are also limited to a combined $250,000 for dairy and hog producers and a combined $250,000 for specialty crop producers. However, no applicant can receive more than $500,000. Eligible applicants must also have an average adjusted gross income (AGI) for tax years 2014, 2015, and 2016 of less than $900,000 or, 75 percent of the person’s or legal entity’s average AGI for tax years 2014, 2015, and 2016 must have been derived from farming and ranching. Applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.

    Many producers were affected by natural disasters this spring, such as flooding, that kept them out of the field for extended periods of time. Producers who filed a prevented planting claim and planted an FSA-certified cover crop, with the potential to be harvested qualify for a $15 per acre payment. Acres that were never planted in 2019 are not eligible for an MFP payment.

    In June, H.R. 2157, the Additional Supplemental Appropriations for Disaster Relief Act of 2019 was signed into law by President Trump, requiring a change to the first round of MFP assistance provided in 2018. Producers previously deemed ineligible for MFP in 2018 because they had an average AGI level higher than $900,000 may now be eligible for 2018 MFP benefits. Those producers must be able to verify 75 percent or more of their average AGI was derived from farming and ranching to qualify. This supplemental MFP signup period will run parallel to the 2019 MFP signup, from July 29 through December 6, 2019.

    For more information on the MFP, visit www.farmers.gov/mfp or contact your local FSA office, which can be found at www.farmers.gov.

    Details of USDA’s Food Purchase and Distribution Program (FPDP)

    Additionally, CCC Charter Act authority will be used to implement an up to $1.4 billion FPDP through the Agricultural Marketing Service (AMS) to purchase surplus commodities affected by trade retaliation such as fruits, vegetables, some processed foods, beef, pork, lamb, poultry, and milk for distribution by the Food and Nutrition Service (FNS) to food banks, schools, and other outlets serving low-income individuals.

     

    Purchasing:

    AMS will buy affected products in four phases, starting after October 1, 2019 with deliveries beginning in January 2020. The products purchased can be adjusted between phases to accommodate changes due to: growing conditions; product availability; market conditions; trade negotiation status; and program capacity. AMS will purchase known commodities first. By purchasing in phases, procurements for commodities that have been sourced in the past can be purchased more quickly and included in the first phase.

    Vendor Outreach:

    To expand the AMS vendor pool and the ability to purchase new and existing products, AMS will ramp up its vendor outreach and registration efforts. AMS has also developed flyers on how the process works and how to become a vendor for distribution to industry groups and interested parties. Additionally, AMS will continue to host a series of free webinars describing the steps required to become a vendor. Stakeholders will have the opportunity to submit questions to be answered during the webinar. Recorded webinars are available to review by potential vendors, and staff will host periodic Question and Answer teleconferences to better explain the process.

    Product Specifications:

    AMS maintains purchase specifications for a variety of commodities, which ensure recipients receive the high-quality product they expect. AMS in collaboration with FNS regularly develops and revises specifications for new and enhanced products based on program requirements and requests. AMS will be prioritizing the development of those products impacted by unjustified retaliation. AMS will also work with industry groups to identify varieties and grades sold to China and other markets imposing retaliatory tariffs, such as premium apples, oranges, pears, and other products. AMS will develop or revise specifications to facilitate the purchase of these premium varieties in forms that meet the needs of FNS nutrition assistance programs.

    Outlets:

    The products discussed in this plan will be distributed to States for use in the network of food banks and food pantries that participate in The Emergency Feeding Assistance Program (TEFAP), elderly feeding programs such as the Commodity Supplemental Foods Program (CSFP), and tribes that operate the Food Distribution Program on Indian Reservations (FDPIR).

    These outlets are in addition to child nutrition programs such as the National School Lunch Program, which may also benefit from these purchases.

    Additionally, the rule provides flexibility for FNS to explore new channels of non-profit distribution of product, should the availability of distribution through traditional channels prove to be insufficient. FNS will offer products through traditional channels prior to consideration of new outlets.

    Distribution:

    AMS has coordinated with FNS, industry representatives, and other agency partners to determine necessary logistics for the purchase and distribution of each commodity, including trucking, inspection and audit requirements, and agency staffing.

    Details of USDA’s Agricultural Trade Promotion Program (ATP)

    USDA’s Foreign Agricultural Service (FAS) will administer the ATP under authorities of the CCC. The ATP will provide cost-share assistance to eligible U.S. organizations for activities such as consumer advertising, public relations, point-of-sale demonstrations, participation in trade fairs and exhibits, market research, and technical assistance. Last week, USDA awarded $100 million to 48 organizations through the ATP to help U.S. farmers and ranchers identify and access new export markets.

    The 48 recipients are among the cooperator organizations that applied for $200 million in ATP funds in 2018 that were awarded earlier this year. As part of a new round of support for farmers impacted by unjustified retaliation and trade disruption, those groups had the opportunity to be considered for additional support for their work to boost exports for U.S. agriculture, food, fish, and forestry products.

    Already, since the $200 million in assistance was announced in January, U.S. exporters have had significant success, including a trade mission to Pakistan that generated $10 million in projected 2019 sales of pulse crops, a new marketing program for Alaska seafood that led to more than $4 million in sales of salmon to Vietnam and Thailand, and a comprehensive marketing effort by the U.S. soybean industry that has increased exposure in more than 50 international markets. These funds will continue to generate sales and business for U.S. producers and exporters many times over as promotional activity continues for the next couple of years.

  • California Dairies, Inc. Names Brad Anderson President & CEO

    California Dairies, Inc. (CDI), today announced the selection of Brad Anderson as its next President and Chief Executive Officer (CEO), effective January 1, 2020.  Anderson, who currently serves as the cooperative’s Chief Operating Officer (COO), is succeeding Andrei Mikhalevsky, who has served as President and CEO since 2012 and recently announced his retirement from CDI at the end of 2019.

    “It’s been a privilege to lead CDI these past eight years during a time of great transition and change for the State’s dairy industry,” said Mikhalevsky.  “I believe the organization will be in strong hands under Brad’s leadership going forward.  He is a proven expert in corporate strategy, with particular experience in the food and beverage industry.  I believe he will continue the path CDI has taken in driving innovation and delivering value-added products to our customers worldwide.”

    Since joining the organization last September, Anderson has supported CDI’s effective implementation of the Federal Milk Marketing Order, led the due diligence and integration of CDI’s newly acquired Turlock North milk powder facility and created a cross-functional team to lead innovation and growth-focused capital investments.

    “We could not be more excited to have Brad as the next Chief Executive Officer,” said Simon Vander Woude, CDI Chairman of the Board.  “Brad has extensive knowledge of our industry and is a strong strategic visionary leader, which will move CDI forward into the future.”

    Anderson brings 28 years of experience in the food and beverage industry to this position.  Prior to joining CDI, Anderson was Senior Vice President and Chief Sales Officer at Dean Foods and held positions of increasing responsibility at Sara Lee Corporation, Pepsi Bottling Group and Earthgrains Company.

    “I am honored and humbled to be the next CEO of California Dairies, Inc., and I appreciate the confidence that both Andrei and the Board of the Directors have placed in me,” said Anderson.  “This is a dynamic time for CDI, and I look forward to continuing the company’s vision of being the leading source of dairy nutrition for a healthy world.”

    About California Dairies, Inc.

    California Dairies, Inc., is the largest member-owned milk marketing and processing cooperative in California, producing 40 percent of California’s milk. Co-owned by nearly 400 dairy producers who ship 16 billion pounds of Real California Milk annually. California Dairies, Inc. is a manufacturer of quality butter, fluid milk products and milk powders. In addition, California Dairies, Inc. is the home of two leading and well-respected brands of butter – Challenge and Danish Creamery. California Dairies’ quality dairy products are available in all 50 United States and in more than 50 foreign countries. For additional information on California Dairies, Inc., visit www.californiadairies.com. California Dairies’ quality dairy products are available in all 50 United States and in more than 50 foreign countries.

  • California Dairy Organizations Collaborate on Process to Address State’s Quota Program

    Today, the United Dairy Families of California, California Dairies, Inc., Land O’Lakes, Inc., Dairy Farmers of America and the STOP QIP organization announced a multi-phase process aimed at soliciting and analyzing industry input on California’s historic quota program.

    Included in this process is a series of meetings, starting later this month, open to all dairy producers and interested parties. These meetings are intended to solicit various pathways for the state’s quota program.

    1) This multi-phase process includes three key parts: The Think Tank, Producer Feedback and Analysis.

    2) The Think Tank phase is for information gathering from various segments of the dairy industry. This will include the meetings identified below, where producers will be able to voice their opinion and contribute ideas or concepts.

    3) The Producer Feedback phase will allow producers to comment and challenge the ideas developed in the Think Tank phase.

    In the Analysis phase, dominant ideas from the Producer Feedback phase will be analyzed for economic impacts and legal pathways to adoption will be determined.

    This process will be implemented with the assistance of dairy industry economist Dr. Marin Bozic and dairy market analyst Matt Gould. Dr. Bozic and Mr. Gould will be conducting an economic analysis of the proposed ideas.

    The first series of meetings associated with the Think Tank phase are as follows:

    ● Tuesday, July 30, 2019 – 2 pm to 4 pm – Embassy Suites, Ontario

    ● Wednesday, July 31, 2019 – 9 am to 11 am – Heritage Complex, Tulare

    ● Wednesday, July 31, 2019 – 2 pm to 4 pm – Turlock Ballroom

    ● Thursday, August 1, 2019 – 9 am to 11 am – Washoe House, Petaluma

    Meeting space is limited. All participants are strongly encouraged to register at

    www.dairyfamilies.org/events

  • Dairy Business Innovation Grant Through USDA Farm Bill

    Although the 2018 Farm Bill did not solve all of agriculture’s economic problems, there was one specific provision providing funds to improve US dairy marketing that producers should know about and may apply for.  Watch this brief interview with Dana Coale from the USDA Agricultural Marketing Service for more details.