Milk supply is rising

Dairy farmers may see a further squeeze on margins in 2023. “Cow numbers are higher than what we had been forecasting and that incorporates into a 200 million pound increase in the U.S. milk supply,” said Mark Jekanowski, chairman, U.S. Department of Agriculture Ag Outlook Board. “Year-over-year, that would be up 2.1 billion pounds.” USDA cut its all-milk price forecast by 20% for the year, averaging $20.45 per hundredweight.

NMPF Board endorses federal order reform
After two years of debate and more than 130 meetings, the National Milk Producers Federation board of directors is giving its support to a proposal to modernize Federal Milk Marketing Orders. This proposal will be submitted to USDA for a federal hearing and a possible producer referendum. Federal orders have not had a significant change in nearly 25 years.

More farm bill funding needed
A coalition of 400 agricultural groups is asking Congress to provide an increase in funding for the 2023 farm bill. In a letter to lawmakers, the coalition said the recent ad hoc disaster programs do not provide a timely or reliable safety net for farmers. The letter was signed by Farm Bureau, Farmers Union and trade groups representing everything from corn and soybean industries to dairy associations.

Farm bill needs to keep next generation in agriculture
American Farm Bureau Federation President Zippy Duvall testified at the farm bill listening session in Waco, Texas. Duvall said food security and national security should be taken into consideration when developing the next farm bill. “Crop insurance is the cornerstone of our farm bill and we need to broaden it, modernize it, and update targets and loan dates,” Duvall said. He also emphasized the importance of conservation programs and keeping younger generations interested in agriculture. “Look around the room at the average age of farmers; we have to do something to make agriculture attractive to young people so they want to come back to grow the food and fiber of the future,” he said.

Food prices continue to move higher
While the overall inflation rate came in at 6%, food inflation is at 9.5%. The Bureau of Labor Statistics reports at-home food prices were up more than 10% last month. Food consumed away from home increased in price by 8.4%.

Minnesota sets export record
Minnesota Gov. Tim Walz announced that the state’s exports reached a record high of $27 billion in 2022, a 16% increase from 2021. North American markets drove Minnesota’s export growth to nearly $12 billion. Minnesota conducted $70 billion in total trade in goods with 215 countries last year with nearly $43 billion in imports. “Over 200 countries look to the state’s workforce to put food on the table, and this is another data point that demonstrates Minnesota’s diversity of economy, strength of the workforce and influence in the global economy,” Walz said.

Net zero carbon target by 2050
A month ago, Walz signed climate legislation pledging the state’s electricity comes from exclusively carbon-free sources by 2040. House Climate and Energy Committee Chair Patty Acomb now wants to amend the cut in greenhouse gas emissions to 50% by 2030 and a net zero target by 2050. “It doesn’t have penalties,” Acomb said. “I’d much prefer carrots than sticks, so I think we have opportunities to incentivize the behavior that we want to see.” The bill was sent back to the House Environment and Natural Resources Committee on a split-party vote.

UMN invests in new research complex
The University of Minnesota is buying land in Mower County for its new Future of Advanced Agricultural Research Minnesota center. The FAARM complex will allow the College of Food, Agricultural and Natural Resource Sciences to evaluate technological farming advances. Construction for the site in southern Minnesota will begin in 2026.

WOTUS regulatory uncertainty
James Callan Associates CEO Jim Callan said the issue of prior-converted wetlands is a concern. “That is a big issue for folks in the Prairie Pothole Region,” Callan said. “I’ve been on a call with them (the Environmental Protection Agency) where they were asked questions about prior-converted wetlands, and I didn’t think their answers were as solid as they could have been, so I’m worried about that going forward.”

A favorable spring outlook
World Weather Incorporated Senior Agricultural Meteorologist Drew Lerner offered an optimistic view for the 2023 Midwest crop. “Most likely, the Northern Plains and Upper Midwest will have a fairly good growing season.” Lerner sees the potential for a ridge of high pressure to build in the central part of the country, which could dry out a portion of the Corn Belt and High Plains.

Martin moves to USDA
USDA has appointed Prescott Martin III as the senior counsel in the Office of the General Counsel. Martin previously worked as chief counsel for the House Agriculture Committee under former Chairman Collin Peterson.

Behnke returns to World Dairy Expo
Lisa Behnke is the new communications manager for World Dairy Expo. This is a familiar role for Behnke who had the same job 12 years ago. Most recently, Behnke was the marketing director for Indiana-based Egg Innovations. Behnke also has experience with the Wisconsin Department of Agriculture, Trade and Consumer Protection, Wisconsin Milk Marketing Board, The Cattle Connection and Ag Source Cooperative Services.

Cheese sticks for adults
Crystal Farms is expanding its snack cheese stock lineup to include two new flavors that target adults – Gouda and sharp cheddar. A company spokesperson said the focus on an adult audience is being done “because cheese sticks are a great, well-balanced option for people of all ages.”

Trivia challenge
Lous Pasteur is the 19th century French biologist who created the practice of pasteurization. That answers our last trivia question. For this week’s trivia, how many glasses of milk does the average cow produce in a year? We will have the answer in our next edition of Dairy Star.
    Don Wick is owner/broadcaster for the Red River Farm Network, based in 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 adult sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.