The comment period for the Federal Milk Marketing Order reform process wrapped up earlier this month. American Farm Bureau Federation Chief Economist Roger Cryan said his organization is not happy with the U.S. Department of Agriculture’s approach for make allowances.
“Those make allowances were already big enough that cheesemakers have been building a lot of new plants and plant expansions,” Cryan said. “The cost survey data USDA used to raise those make allowances is badly biased. It’s based on voluntary surveys from small, high-cost processing plants that are not representative of the dairy manufacturing business generally.”
A decision on the final FMMO changes is expected before the end of the year.
Ad hoc disaster and farm bill passage needed
A farm crisis is on the horizon. U.S. Senate Agriculture Committee Ranking Member John Boozman made that point in a speech on the U.S. Senate floor Tuesday. The Arkansas Republican said market prices are far below the cost of production, and many farmers will be unable to secure an operating loan next year. Two recommendations were made.
“We need to provide emergency assistance to address the economic losses that farmers are facing associated with the 2024 crop,” Boozman said. “Farmers across the country need a bridge to help their family farms survive into next year.”
Boozman said ad hoc emergency assistance does not reduce the need to pass a new farm bill this year.
“The window to make this happen is closing quickly,” he said.
Farm Credit Administration: ag economy outlook
The Farm Credit Administration has released its quarterly report on the farm financial situation. High corn and soybean yields are anticipated, but the large supplies are pressuring commodity prices. Livestock producers are being helped by cheap feed. The strong financial positions in 2021 and 2022 provided a cushion for the current downturn in the farm economy. With a drop in liquidity, the FCA expects more reliance on operating lines of credit. Year to date, the FCA has had earnings of $3.9 billion. That’s up 12% from the same period last year.
Milk powder exports face new tariffs
Colombia is calling for an additional 4.86% tariff on U.S. milk powder exports, claiming the product is unduly subsidized. The preliminary tariff will be in effect for four months while an investigation takes place. The U.S. Dairy Export Council and the National Milk Producers Federation are disappointed in the preliminary ruling. The dairy groups said the claims are baseless.
U.S. Department of Agriculture updates supply-demand forecast
In the September supply-demand report, the U.S. Department of Agriculture lowered its forecast for 2024 and 2025 milk production. For this year, milk production is forecast at 225.9 billion pounds. That’s down from 226.3 billion pounds in the August report. In 2025, milk production is projected to total 227.9 billion pounds, down from 228.2 billion pounds a month earlier. The downturn is based on lower cow inventories and a reduction in growth in milk per cow. USDA is predicting Class III milk prices to average $19.45 per hundredweight, up from $18.40 per cwt. in August. For 2025, Class III prices are forecast at $19.60, up from $18.65 per cwt.
Concentrated animal feeding operations in court
The Ninth Circuit Court heard oral arguments late last week in a lawsuit seeking stricter regulations for large-scale livestock operations. The lawsuit was filed by Food & Water Watch. In 2017, the court denied a petition for more stringent rules and the environmental activist group wants the court to reconsider. A decision may not happen for over a year.
CHS returning patronage and equity redemptions to owners
CHS Inc. plans to return $600 million in cash patronage and equity redemptions to its owners in the calendar year 2025. Based on business done with CHS in fiscal year 2024, which ended Aug. 31, 2024, the CHS board has elected to return $300 million in cash patronage and $300 million through equity redemptions to CHS owners. This is the third-highest amount of cash returns to owners in CHS history.
Newton moves to Terrain
A well-known agricultural economist is the new executive head of Terrain’s team of ag economists and analysts. Most recently, John Newton was the chief economist for the U.S. Senate Agriculture Committee Republican Caucus. Before coming to Capitol Hill, Newton was chief economist for the American Farm Bureau Federation and National Milk Producers Federation. Newton succeeds Don Close, who launched Terrain in 2022. Close will remain with Terrain and focus on cattle and beef analysis. Terrain provides economic analysis for AgCountry Farm Credit Services, American AgCredit, Farm Credit Services of America and Frontier Farm Credit.
Miller joins Dairy Farmers of Wisconsin
Ben Miller is the new senior vice president of industry relations for Dairy Farmers of Wisconsin. For the past eight years, Miller has been the assistant vice chancellor for government affairs and strategic partnerships for the University of Wisconsin-Madison.
Costello continues her commitment to FFA
The new executive director of the Wisconsin FFA Alumni and Supporters is Tari Costello, of Waupun. For the past 27 years, Costello was an ag teacher and FFA advisor for Waupun Area High School. During her career, Costello was recognized as Wisconsin Association of Agriculture Educators Outstanding Agriculture Educator, Wisconsin High School Teacher of the Year, Wisconsin Agri-Science Teacher of the Year and Wisconsin Farm Bureau Outstanding Agriculture Educator. She received a Herb Kohl Teacher Fellowship award and is an honorary Chapter, State and American FFA Degree recipient. Costello is an alumnus of the University of Wisconsin-River Falls and a native of Alma, Wisconsin.
New dairy item on Domino’s menu
Macaroni and cheese is now on the menu for Domino’s Pizza. There are two options: 5-Cheese Mac & Cheese and Spicy Buffalo 5-Cheese Mac & Cheese.
“Domino’s is continuing to innovate with intent and expand our menu with additions that cater to what our customers want,” said Kate Trumbull, Domino’s senior vice president, chief brand officer.
Trivia challenge
“The Golden Age” is the theme for the 2024 World Dairy Expo. That answers our last trivia question. For this week’s trivia, what color are the shavings in the Coliseum at the 2024 World Dairy Expo? We’ll have the answer in our next edition of the Dairy Star.
Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.
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