No apologies

The House Committee on Agriculture hosted a hearing on farm financial conditions before breaking for the August recess, but the session started with a spirited exchange over the farm bill. Chairman Glenn “GT” Thompson defended the farm bill that passed out of his committee in late May. “I would not apologize for advancing a bill that seeks to put the farm back in the farm bill and I also won’t apologize for advancing a bill that was written by every member of this committee,” Thompson said. “Forty provisions that were put into this that were just led by my Democratic colleagues and I don’t put things in legislation just to buy a vote, I put it in there because it was great legislation.” Thompson also challenged Senate Agriculture Committee Chair Debbie Stabenow to unveil her farm bill text and not what he called “a partisan 90-page summary.”

Scott renews criticism of ag committee farm bill 

House Agriculture Committee Ranking Member David Scott followed Chairman Glenn “GT” Thompson’s opening statement with criticism. In particular, Scott argued the pending farm bill eliminates the U.S. Department of Agriculture’s ability to use Commodity Credit Corporation funds to support farmers. “Secretary (Sonny) Perdue used approximately $23 billion in CCC funds for the coronavirus assistance program and this helped our farmers survive lower prices that were arising as a result of COVID 12. We didn’t restrict the CCC when my friend Sonny Perdue was agriculture secretary and we must not do it now.”

‘Dead in the water’ 

The hope for a timely passage of the farm bill is waning. “It’s dead in the water right now,” said former House Agriculture Committee Chairman Collin Peterson. “People are hoping that the election will change things, but I’m not sure that’s the case.” If the legislation isn’t passed in a lame-duck session, another one-year farm bill extension will be needed. “I’m guessing that’s what will happen, but who knows? The politics are so crazy now.”

Significant investment needed in the farm safety net 

Combest Sell and Associates Managing Partner Tom Sell remains optimistic a farm bill can be done this year. There is a sense of urgency surrounding the farm safety net. “Title I and Title IX crop insurance, we’re spending less money right now (on these programs) than we have in the recent five, 10, 20, 25 years,” Sell said. “It is time for an infusion in these programs that help create the safety net so that family farmers can remain independent.”

National Milk Producers Federation welcomes Federal Milk Marketing Order recommendations

The USDA released its recommendations for modernizing the FMMOs in early July. Stephen Cain, senior director of economic research and analysis for the NMPF, is pleased with USDA’s recommendations to modernize the FMMOs. “Fundamentally, USDA agreed with our premise and methodology for all the changes we were asking for. They didn’t do it exactly the way we had hoped for, but in general, we’re very pleased with how USDA has come out with the recommended decision here.” Cain is surprised USDA removed barrels from the Class III formula. “In the long run, that’s going to be very supportive of dairy farmer revenue over the next few years and the future.”

Avian Influenza Research and Response Act introduced 

A bipartisan group of House members has introduced legislation to help dairy farmers impacted by avian influenza. It codifies the USDA rules that compensate dairy farmers for milk production losses due to the virus. It also prioritizes research for H5N1 and calls on USDA to create a dairy biosecurity education and training program.

Flu vaccination recommended for livestock workers 

The Centers for Disease Control and Prevention is stepping up efforts to vaccinate livestock workers against the seasonal flu. The CDC is worried that someone could be infected by the seasonal flu and the H5N1 and develop an entirely new virus. States will split $2 million for the vaccine and $3 million to implement the program. Another $5 million will be spent on educating farm employees about the importance of biosecurity and the use of protective gear.

A Class III market reversal 

The dairy market has seen a remarkable reversal higher since last winter. AgResource Company President Dan Basse said several factors are driving the change. “We’re still trying to decipher the impact on production relative to avian flu, but longer term, there is optimism as European and southern hemisphere production is down and we start to see dairy markets improve in Class III prices, likely making it to the $21, $22 level as we go into the fourth quarter.”

Dairy herd expansion may be delayed 

Class III milk prices have been stronger lately. “It’s much better than what we were facing earlier in the year,” said Mike North, producer division president, Ever Ag. With falling feed costs and rising milk prices, profitability may be on the horizon. Despite that, North said expansion may be slow to happen. Rising interest rates, the cost of capital and the interest in beef-on-dairy are cited as reasons. “We also have HPAI that’s been found in dairy animals and reduced milk production and supplies so that’s taken away from it.”

Risk management advised

Prices for beef and dairy cattle are favorable and likely will remain strong for quite some time. Independent consultant Nevil Speer said the market versus prices will remain through the rebuilding of herds, whenever that might be. Dairy heifers are of especially low supply and high demand while milk prices are also favorable. Speer says risk management during the good times is important to protect yourself during the bad times. “Typically, when we talk about risk management, producers turn to futures and options. The other tool that’s really important is livestock risk protection.” Speer notes basic business risk management is also important during favorable times. “Let’s try to reduce our debt service from year to year and let’s try to build up some working capital reserves.”

New cheese processor at Chilton

Grande Cheese Company broke ground on a dairy processing facility in Chilton. The site will undergo 20,000 square feet of renovations and 60,000 square feet of new construction. The project is expected to be completed in 2026. Grande Cheese is well known for its production of Italian cheeses.

Dairy Farmers of Wisconsin executive committee elected

For the third consecutive year, Janet Clark of Rosendale will serve as chair of DFW. Gail Klinkner of Viroqua was elected vice chair. The secretary is Sandy Madland of Lyndon Station and the treasurer is Mark Crave of Watertown. The executive committee will also include Andrew Christenson of Amery, Jonathon Hallock of Mondovi, Kay Zwald of Hammond and Jeff Betley of Pulaski.

Trivia challenge

September 18 is National Cheeseburger Day. That answers our last trivia question. McDonald’s sells more cheeseburgers than any other fast-food restaurant. For this week’s trivia, what fast food chain is second on that list? 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.