Federal order reform takes effect

After a lengthy hearing process, changes to the Federal Milk Marketing Orders are now in place. According to American Farm Bureau Federation Economist Danny Munch, the changes include “the switch to the ‘higher-of’ Class III and Class IV price formula for Class I fluid milk price. Class I differentials have been raised in most regions, which helps offset costs to transportation and servicing fluid milk markets. We also removed barrel cheese from the protein formula.” Federal Order reform has been a long time coming, but Munch said the current trade disruptions may stunt its impact.

Farm bill concerns linger

The farm bill process is taking a nontraditional route. Rather than passing in regular order, the House included portions of the farm bill in the budget reconciliation bill and plans to pick up the rest at a later date. It may be months before the Senate tackles budget reconciliation or a farm bill. Midwest Dairy Coalition Policy Director Steve Etka said the dairy industry has gone through changes since the last farm bill passed in 2018, and that needs to be addressed: “Production and average herd size increased, and some of the structures of that program need to be updated to reflect those changes.” Etka is concerned about handling a farm bill in a piecemeal fashion. “The farm bill coalition that has existed for decades combines folks in Congress who care about nutrition assistance programs with those who care about farmer assistance programs,” he said. “That coalition has been key to getting a farm bill passed, so we don’t want to see that coalition divided.”

90-day timeline for reciprocal tariffs approaching

When the White House issued a temporary pause in reciprocal tariffs in April, President Donald Trump promised 50 trade deals in 90 days. The halfway point in those 90 days has come and gone, and there are two trade agreements in place: a preliminary deal with the United Kingdom and a short-term reduction in tariffs with China. Negotiations are underway with countless other countries before the 90-day window ends and reciprocal tariffs are implemented again.

Current trade deals differ from traditional agreements

According to CoBank Grains and Oilseeds Economist Tanner Ehmke, the trade deals being negotiated now differ from previous trade agreements: “Prior trade agreements took years to put together, at least 18 months, some of them several years.” That provides time to secure buy-in from the participating countries, “and the trade deal here in the United States is supposed to be passed by Congress, thereby making it durable because it becomes policy,” Ehmke said. Developing trade relationships outside of that traditional framework is more fragile. Ehmke cites the recent trade announcement with the United Kingdom. “Because it was not done through the traditional format of being slow walked to have the UK and the United States legislative bodies agree on these pacts, it’s not really a trade agreement but a temporary negotiation that can easily be undone on a whim.” With the current uncertainty over tariffs, Ehmke said grain elevators and grain merchandisers may be forced to widen the new-crop basis to attract local demand.

More market access

The agriculture department is expanding market access for U.S. commodities. Agriculture Secretary Brooke Rollins announced a new streamlined process is in place for U.S. dairy facilities to become registered to export to Costa Rica. Rollins said this action provides access to a $130 million market in Costa Rica. “Securing greater market access for American dairy farmers is a much-needed win for the U.S. dairy industry.” Additionally, the U.S. Department of Agriculture said Pakistan eliminated its ban on U.S. biotech soybeans, resulting in the immediate sale of 65,000 metric tons of U.S.-grown beans. Panama is also exempting U.S. pork from its import quota system.

Minnesota ag finance bill approved

Minnesota Governor Tim Walz has signed legislation funding the Minnesota Department of Agriculture, Minnesota Board of Animal Health and Agricultural Utilization Research Institute. “It addresses things like agricultural emergencies, like high-path avian influenza, support for E15 infrastructure, meat processing, farm to school programs; all important things that will really help our agency run well,” said Agriculture Commissioner Thom Petersen. “I couldn’t be happier.” The bill also includes an additional $500,000 for the state’s farm down payment assistance program, which helps farmers purchase their first farm. Highlights also include funding for rural mental health and farm safety, wolf and elk depredation programs, the Farm Business Management program and the biofuels infrastructure grants. The ag bill takes effect July 1.

Seeking input on checkoff rate

The Minnesota State Cattlemen’s Association is surveying its members about a possible increase in the state beef checkoff. In Minnesota, the checkoff rate is $1 per head sold, with half of that amount allocated at the state level and the other half dedicated to the national effort. The surveys had to be completed by June 2.

BouMatic offers new milk analyzer

BouMatic has introduced the MilkGenius In-Line Milk Analyzer to its Gemini UP milking robot and other BouMatic milk systems. The MilkGenius processes and gathers data in real time and provides dairy farmers with better oversight of their dairy herds. This system is the result of the partnership between BouMatic and BROLIS, a sensor technology firm.

Simpson to succeed Conner

The National Council of Farmer Cooperatives has named its next president and CEO. Duane Simpson has been with Bayer for the past 17 years; previously, he was CEO of the Kansas Grain and Feed Association. The current NCGC leader succeeds Chuck Conner, who has been in the role since 2009. Simpson takes over the job in mid-July, during the organization’s annual Washington conference.

Holstein honors for Tom Morris

Holstein Association USA will present its Distinguished Leadership Award to Tom Morris at the National Holstein Association Convention later this month. Morris established a registered Holstein dairy operation in 1977 and created a sales management business in 1982. Morris managed over 500 Holstein auctions, including nine National Holstein Convention sales and 35 World Classic Sales at World Dairy Expo. Tom and Sandy Morris launched the Cattle Connection in 1990. Morris has been involved in WDE since its start in 1967, including time on the executive committee.

Appointments announced

Minnesota Governor Tim Walz has announced a large slate of state appointments. Paul Hansen of Plymouth and Jeffrey Lindeman of Shafter will join the Minnesota Agricultural Education Leadership Council; Hansen works for Land O’Lakes, and Lindeman is a longtime agriscience teacher at Chisago Lakes. Walz also reappointed two individuals to the Rural Finance Authority: Eric Sannerud of Milaca and Carol Anderson of Foley. Sannerud is the CEO of a specialty hops business. Anderson is a farmer.

Trivia challenge

National Cheeseburger Day is September 18. That answers our last trivia question. For this week’s trivia, when is National Ice Cream Day? 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.