March Madness was taken to a whole new level this year when torrential rainfall and snowmelt caused unprecedented flooding in the Southern San Joaquin Valley, necessitating the evacuation of homes, communities and about 100,000 dairy cattle. Watch this brief video with Anja Raudabaugh, CEO of Western United Dairies as she clarifies what really happened and how this tragedy has impacted the local dairy community.
Tag: Western United Dairies
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Preparing for the Next Round of Funding for CDFA Methane Management Programs
CDFA recently announced awards for the 2022 Alternative Manure Management Program, as well as the Dairy Digester Research & Development Program, These programs are very competitive, and Paul Sousa from Western United Dairies encourages interested dairy producers to start preparing now to apply for the next round of funding. Watch this brief interview with Paul as he explains and read more about it in California Dairy Magazine.
Please thank this video’s sponsor Clean Energy for their industry support.
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Prepare Now for Pending Water Quality Regulations for Central Valley Dairies
There are some significant changes coming soon to water quality regulations for Central Valley dairy producers and now is the time to prepare. Watch this brief interview with Paul Sousa from Western United Dairies as he explains and read more about it in California Dairy Magazine.
Please thank this video’s sponsor Clean Energy for their industry support.
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California Dairy Leaders Program Helps Build Industry Leaders of Tomorrow
Like most farmers and ranchers, dairy farmers know a lot about farming but often need to learn more about the ways government actions and farmer checkoffs affect their businesses.
That’s where the California Dairy Leaders Program comes in. After a COVID-related hiatus, the program – sponsored by Western United Dairies (WUD) – has selected its 16th class of dairy professionals who will spend the next several months learning about the state and federal legislative and regulatory process, how milk products are marketed and ways they can communicate effective messages about the dairy industry.
Participants in the 2022/2023 California Dairy Leaders Program are:
- Anthony Agueda, dairy farmer, Alberto Dairy, Stanislaus County
- Eric Fast, Maas Energy Works, Redding
- Tyler Ribeiro, dairy farmer, Rib-Arrow Dairy, Tulare County
- Linda Sousa, Farm Credit West, Tulare County
- Allison Tristao, Tristar Dairy, Tulare County
Darby Pedrozo, until recently WUD’s Technical Field Services Representative, said the program is a great learning experience – and she knows that first-hand, having participated in the 2019-20 sessions.
“I had just started at WUD, and it was great to meet other people in the industry. I made connections and friendships I’ll have for the rest of my life,” she said. “It was a big learning experience and I’m extremely thankful I was able to participate.”
Art Moessner, Vice President, Agribusiness Dairy Team Lead, with American AgCredit, said Farm Credit sponsors the program to help train future industry leaders by giving them a broader perspective.
“This program has done a great job over the years in giving dairy producers a better understanding of the forces that shape their industry beyond what they do on the farm,” Moessner said. “Every organization needs a steady stream of new leaders, and Farm Credit is proud to help build the future leadership of WUD.”
American AgCredit, CoBank, Farm Credit West and Yosemite Farm Credit provide funding for the program. The organizations are part of the nationwide Farm Credit System – the largest provider of credit to U.S. agriculture.
The program begins with communications and leadership training, environmental and regulatory law that govern the California dairy industry, followed by a trip to Sacramento to learn about the state legislative process and how WUD advocates for key issues affecting the dairy industry. Participants also learn about the Federal Milk Marketing Order (FMMO) and dairy market risk management strategies. Dairy’s unique pricing system and subsequent supply side economics are capped off for Dairy Leaders with a trip to the Chicago Mercantile Exchange to get a national perspective on dairy promotion.
After that comes a trip to the nation’s capital, Washington D.C., to meet with federal agencies and other ag-related trade associations, as well as learning how the federal legislative process works.
In all, participants are away from their businesses for about 14 days over the course of a year.
“It’s important for our dairy families to understand all facets of the industry, especially where their milk check deducts are going,” Pedrozo said. “This program gives them an insight into the work Western is doing to represent them, along with groups like the Dairy Export Council and the DMI (Dairy Management, Inc.) and the state checkoff California Milk Advisory Board (CMAB).”
Mark Littlefield, President and CEO of Farm Credit West, noted that the dairy industry is being particularly affected by state and federal efforts to reduce greenhouse gases, and said it was important for dairy producers to understand the major steps the industry has already taken to reduce emissions and share these successes within the industry and with government leaders.
“Many larger producers are participating in new systems to capture methane, pipe the emissions to digesters that upgrade the gas and use it to produce renewable electricity, renewable natural gas or hydrogen fuel,” Littlefield said, adding that smaller dairies are also reducing methane through less-costly means.
“California has set an ambitious goal of reducing dairy methane emissions by 40%, and our state’s producers are on track to meet that goal,” he said.
Pedrozo said producers are also concerned about the drought and the reduced amount of water available to grow feed and to water their cows. But on a brighter note, she said while fluid milk consumption continues to decline nationally, the industry is still holding its own due to the growth in other areas, such as cheese, butter, and ice cream.
And she should know. Besides working for WUD, Pedrozo has two aunts who married dairymen and in June she married a dairy farmer in Visalia. The couple now own and operate the farm together.
More information about the program is available here.
About Farm Credit:
American AgCredit, CoBank, Farm Credit West and Yosemite Farm Credit are cooperatively owned lending institutions providing agriculture and rural communities with a dependable source of credit. For more than 100 years, the Farm Credit System has specialized in financing farmers, ranchers, farmer-owned cooperatives, rural utilities and agribusinesses. Farm Credit offers a broad range of loan products and financial services, including long-term real estate loans, operating lines of credit, equipment and facility loans, cash management and appraisal and leasing services…everything a “growing” business needs. For more information, visit www.farmcreditalliance.comAbout Western United Dairies:
Western United Dairies (WUD) is a voluntary trade association representing more than 75% of the milk produced in California. In appreciation of the tremendous dedication of capital, labor and caring concern that our dairy farming members have invested in their dairies, the staff and Board of Directors at WUD will earnestly and conscientiously work to promote sound legislative and administrative policies and programs for the success of the industry, welfare of the animals and the prosperity of our consumers. WUD is striving to advance strategies for the general welfare and longevity of dairy families, while maintaining the strong and positive public image of the entire dairy industry.
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Challenges in California’s Organic Dairy Sector
The market for organic milk in California and the United States has seen better days; but over the past year, increased input costs are compounding the challenges for organic dairies in the state. Watch this brief interview with Melissa Lema from Western United Dairies as she explains, and read more about it in California Dairy Magazine.
Please thank this video’s sponsor Clean Energy for their industry support.
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CA Farm Water Crisis – The Big Picture with Aubrey Bettencourt
California farmers were already in a tight water supply situation before this dry year began. With water curtailments, SGMA implementation, settlement agreements and little progress in water infrastructure improvements, farmers have a lot of concerns regarding the future of their livelihoods. Watch this brief video with Aubrey Bettencourt as she provides the big picture of where agriculture currently stands in the California water crisis. Bettencourt has served California agriculture in various capacities over the years and is now Director of Sustainability with the California Cattle Council and Western United Dairies.Please thank this video’s sponsor Suterra for their industry support. -
Western United Dairies Announces Aubrey Bettencourt as Director of Sustainability
Western United Dairies – Continuing to provide resources and services for California’s dairy and cattle community, Western United Dairies (WUD) has hired Aubrey Bettencourt as the new Director of Sustainability, a position made possible by the California Cattle Council to benefit all dairy farmers, statewide.
As Director of Sustainability, Bettencourt will support farmers in cultivating a shared vision of sustainability to achieve state and local natural resources goals and economic prosperity for California’s dairies, farmers, and ranchers by developing plans, projects, and programs specifically focusing on watershed health, meeting the direct needs of dairy farmers in maintaining a healthy California milkshed.
Bettencourt’s skillsets will directly assist the industry’s leading environmental and regulatory guru – Paul Sousa, by broadening the industry’s ability to be laser focused on water supply. Bettencourt will work to ensure a strong milkshed remains in areas of the state that are critically over drafted through diversified production goals, exploring, among other things, groundwater banking and land management strategies, and identifying and securing opportunities and additional funding for watershed improvement projects. Bettencourt’s ability to bring diverse stakeholders together to identify and implement collaborative solutions will be key to helping our dairy farmers meet new regulatory and natural challenges, fostering working relationships among multiple interests including affected communities, domestic well users, tribes, the State Water Board’s Division of Drinking Water, local planning departments, health officials, groundwater sustainability agencies, and disadvantaged communities.
As a fourth generation California farmer, Bettencourt most recently served as Deputy Assistant Secretary of Water and Science at the Department of the Interior working extensively to bring efficiency and coordination among the federal water community with Bureau of Reclamation, USGS, and other DOI agencies & bureaus, along with USDA, EPA, DOE, DOC AND DOD for delivery of safe and reliable water supplies to the nation. Prior to DOI, Bettencourt served as USDA Farm Service Agency California State Director, where her mission was clear: keep farmers farming through the delivery of effective, efficient agricultural programs to California’s farmers, ranchers and agricultural partners. As executive director of a statewide non– profit, California Water Alliance for nearly ten years, Bettencourt’s understanding of the dynamics and importance of member–focused organizations, developed a network of diverse water leaders statewide bridging the gap between rural and urban, agriculture and environment advocating for water supply reliability for all Californians.
Aubrey is committed to the work of the farmer and the agricultural community, and brings the knowledge, experience, expertise, and collaborative energy it will take to assure a sustainable and reliable dairy industry. Aubrey can be reached at aubrey@wudairies.com.
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July 31 Quota Court Hearing : FAQ with Western United Dairies
As we approach the Stop QIP v CDFA court hearing date rescheduled for July 31, we received a lot of questions on the topic and if this proceeding is different than the Chapter 3.5 hearing we went through in June. Below you will find a list of commonly asked questions as well as a few others of interest regarding quota.
If QIP is terminated via Stop QIP’s Chapter 3.5 referendum, will there be a payment to compensate quota holders?
No. The only question before the Secretary is whether to suspend Chapter 3.5 and thereby terminate the QIP immediately.
• What has WUD’s role been through the Chapter 3.5 hearing?
WUD submitted historical, contextual and background information as testimony to the administrative law judge presiding over the hearing. It has been the board’s position that a vote on the QIP should happen the way it did to implement it, following the rules in Chapter 3.0.
• What has WUD’s role been through the Stop QIP v CDFA litigation?
WUD filed an amicus curiae brief to submit historical, contextual and background information in the matter. It has been the board’s position that dairy farmers have the right to decide whether quota stays or not. A law- suit to eliminate QIP without a referendum strips dairy farmers’ voting rights away.
• What is the court hearing date for the Stop QIP v CDFA litigation and how can I listen or participate?
The hearing will take place on July 31 at 10:00 a.m. You will be able to listen to the proceedings live HERE, but participation from individual producers will not be possible. There could be a tentative decision announced as early as Monday. But be aware a tentative decision does not mean this is an official conclusion. The parties still have an opportunity to present argument to the court after a tentative ruling has been announced, and the court may reach a different conclusion or change other aspects of its ruling after the hearing.
• When will the decision be made on Stop QIP’s Chapter 3.5 petition?
We are still waiting on the administrative law judge to announce his decision. There is no set date for a decision.
What is the voting threshold for a referendum to suspend Chapter 3.5?
This referendum threshold is found in Section 62755 of Chapter 3.5: The secretary shall find that producers have assented to the continued operation of this chapter if the secretary finds on a statewide basis that not less than 51 percent of the total number of eligible producers in the state have voted in the referendum and that 51 percent or more of the total number of eligible producers who voted in the referendum and who produced 51 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum, approve the continued operation of this chapter. In other words, in order to suspend Chapter 3.5, either (1) fewer than 51% of the eligible producers vote in the referendum, or (2) 49.1% of the voting producers or voting milk vote against continuing the chapter.
• What was the referendum threshold used to vote QIP in?
The referendum threshold is found in Section 62717 of Chapter 3: The director shall find that producers have assented to the plan if he finds on a statewide basis that not less than 51 percent of the total number of eligible producers in the state shall have voted in the referendum and finds one of the following:
(a) Sixty–five percent or more of the total number of eligible producers who voted in the referendum who produced 51 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum approve the plan.
(b) Fifty–one percent or more of the total number of eligible producers who voted in the referendum who produced 65 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum, approve the plan.
• If the administrative law judge concludes that a Chapter 3.5 referendum does not apply to a petition to terminate the QIP, can the Secretary use her discretion and still hold a referendum with the Chapter 3 threshold instead?
No. The call of the hearing was dictated by Stop QIP’s Chapter 3.5 petition. The Stop QIP petition only requested a Chapter 3.5 referendum to suspend Chapter 3.5 and thereby terminate the QIP; it did not ask for a Chapter 3 referendum.
• Can quota sales occur while we wait for decisions in these matters?
Yes. A farmer can sell quota as long as it was acquired more than five years ago. Exceptions include family transfers or interstate succession. If a farmer sold quota, he has to wait 24 months before he can buy more (same exceptions apply).
• What was the latest quota price?
The latest reported sale was in June and the average was $150/lb. SNF.
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Western United Dairies Provides Recap on Stop QIP Quota Hearing
Quota has been a real sensitive topic of contention over the past year for California dairy producers, and things seemed to really escalate right up to the World Ag Expo, when the United Dairy Families of California presented a five year plan to potentially terminate the California Quota Implementation Plan (QIP). Things slowed down with the onset of the global COVID-19 pandemic, and the industry turned their attention to adapting all the changes that accompanied it. However, following multiple attempts and petitions to order an immediate termination of QIP by a certain group of dairy producers, a quota hearing with CDFA finally occurred June 9-10th.
Of this two-day virtual meeting, Western United Dairies’ Economist Annie AcMoody reported the following:
The number of attendees fluctuated throughout the days, with a peak around 190 participants at one time. The total number of people who logged in at least for a little while is likely higher as people came and went during the proceeding. An Administrative Law Judge (ALJ) presided over the hearing and only he and a representative of the Attorney General’s Office were allowed to ask questions of presenters. Technical issues and background noises ranging from side conversations to lunch orders were an issue throughout the process, causing interruptions through many presentations.
The hearing started with a presentation from Chip English (Stop QIP’s attorney) focusing on why there should be a producer referendum under Chapter 3.5. A presentation from an economist that prepared a report for them, Dr. Sundig, followed. Dr. Sundig focused on his analysis of why he thinks dairy farmers anticipated quota to go away (even before the petitions and the FMMO). The second team to take the virtual floor was Save QIP. Their attorney, Niall McCarthy, discussed the importance of quota and why a petition on Chapter 3.5 shouldn’t have any effect on the QIP. The economic consequences of eliminating quota were discussed further by an economist hired by the team, Lon Hatamiya. The third and last registered organization was United Dairy Families of California (UDFC). The group’s attorney, Megan Oliver Thompson, highlighted why a petition based on Chapter 3.5 is not the appropriate vehicle to get to an elimination of the QIP via referendum. Dino Giacomazzi, a representative of UDFC, spoke next to explain the process his organization went through, with the objective of arriving at a broad industry consensus. Most of you may recall the many meetings and surveys held last summer through early 2020 as part of this process. The three largest coops (CDI, DFA and LOL) as well as the three state trade associations (CDC, MPC and WUD) and Stop QIP actively participated in the process. As a result of the analysis and surveys, Dr. Bozic unveiled the survey–favored concept (a 5–year sunset) at the Farm Show in Tulare. Following that, UDFC sought signatures for a petition, which they delivered to the Secretary just days before the StopQIP hearing (read the announcement from the UDFC below for more details). CDFA has 90 days to verify whether the petition vas valid.
Once organizations were done, individual commenters were allowed a maximum of 5 minutes each, which is not a very long time for such a complicated issue and when there are interruptions due to attendee muting issues. Passion and conviction were key features of dairy farmers’ testimony from both sides of the aisle. There is a lot at stake and the ten- sion was palpable during the full two–day process
We added much information relevant to the proceedings at this link: westernuniteddairies.com/quota/ , including written statements submitted to CDFA. Now that the ALJ has heard all interested parties during the hearing and received all written statements, there is a ten–day period to file post–hearing briefs for those who requested it. After that, the ALJ will have to come to a decision on whether this should move to a producer referendum.
California Dairy Organization Submits Quota Reform Petition to CDFA
Dr. Marin Bozic The United Dairy Families of California (Dairy Families) submitted a petition to reform California’s historic quota program to the California Department of Food and Agriculture (CDFA). The petition outlines a five–year sunset proposal, which was the result of a process that included input from hundreds of California dairy producers over several months of regional meetings. The organization facilitated an inclusive and transparent three–phase process led by Dr. Marin Bozic and Matt Gould that narrowed 11 initial reform proposals down to one. The Dairy Families’ petition calls for CDFA to bring the producer–generated idea to a referendum. “Dairy Families has worked diligently over the last year to gather input and elicit ideas from the entire producer community. We believe this petition represents the will of the dairy industry and the proper course of action would be to bring it to a vote of California Dairy Producers,” said Dairy Families Executive Committee Member Travis Kamper of Riverdale, CA. The plan would phase out the quota program over five years. The sunset plan proposes:
● A Quota Implementation Plan sunset with the termination date of March 1, 2025
● Equalized regional quota adjusters of $1.43/cwt for all counties
● A recommendation that the plan be implemented by a producer referendum.
Dairy Families announced the sunset plan on February 11 at the Phase 4 meeting held during the World Ag Expo in Tulare, CA. The Dairy Families’ process was supported by the state’s three major dairy co–ops, California Dairies, Inc., Dairy Farmers of America, and Land O’Lakes, Inc., as well as the three trade groups, California Dairy Campaign, Milk Producers Council, and Western United Dairies. Stop QIP also participated in the process. UDFC formed in early 2019 in an effort to bring unity to an increasingly divided dairy community.