March 2015 MilkLine Newsletter

FIRSTHAND
MILKLINE
March 2015
E WKSNLOW
E T TL E
R GE
M I L K I N D U SNT RY
ED
HIGHLIGHTS:
Members Gather for Annual Mtg p 2
EPA Withdraws Interpretive Rule p 3
MPP Tracker and Sign-Ups p 5
TPP Hits Critical Stage p 3
Producer Discovery Workshops p 4
FarmFirst Rejects Program Cuts p 5
Pour Me
Another Glass
I often sit down at the end of a long day to
reflect on all that took place – the decisions
that were made, the comments said, and
the progress that took place. There are a
lot of challenges that can occur during any
given day, and while this isn’t a regular
habit of mine, I sometimes find it necessary
to take some time to think back on the day.
More often than not, this end-of-day
reflection occurs while drinking a cold glass
of milk.
I’ll admit I am overly biased in how much I
enjoy milk. I drank it more than three times
a day growing up. I love how it rejuvenates
my body after a good workout. Not to
mention, I am a proud daughter of a dairy
farm family.
So as I sit here, gathering my thoughts
that are rolling through my mind, a wave
of gratitude overwhelms me. I find it
unfortunate that so many in our society
live their lives without realizing the value
that so many farmers have contributed to
everyone’s better well-being.
And that so many go without recognizing
the hard work and dedication found in the
farming community.
denied to others around the world. I have
access to a safe and healthy food supply,
which includes one of the finest products
available on the marketplace: milk.
I’m talking about that white stuff that’s in
the now half-empty glass in my hand. Or is
the glass half-full?
I don’t mean to
“If that’s the spirit of the people I’m working
draw attention
to the long
for.... you might as well pour me another glass.”
days and the
various challenges that come with farming.
Jokes aside, optimism runs nearly as deep
Everyone knows what they’re getting into
as a farmer’s commitment to quality does.
when they choose that profession. There are
When the weather quickly turns from
ways to make it easier, but it still comes with
being your greatest ally to a fierce enemy,
a few moments of blood, sweat and tears.
optimism seems easier than shaking your
fist at the sky. I consider myself a realist,
What has my curiosity and attention lately
but I too find myself looking towards the
is that there are certain individuals that
sky, thinking and speculating how the
I’ve had the chance to meet that embrace
future will pan out.
the challenges that our industry faces –
and see them as opportunity. Whether
It’s incredibly comforting to know that I am
it’s reconnecting with consumers that are
connected with – and working for – these
distant from their food source, updating
individuals with this can-do mentality,
protocols and animal welfare practices, or
embracing each day for what it’s worth
introducing new technology that can be use
and diving into new opportunities. Their
on the farm, it is all opportunity.
willingness to work and think strategically
allows them to focus on the important
These types of activities are all well and
aspects of their farm, and the organizations
good, but these activities are only the tip
they’re a part of. They have high standards
of the iceberg. It’s the mentality behind
and even higher goals, with great
these individuals, the idea that there is no
expectations of themselves and the future.
mountain too great. Having an insatiable
thirst of curiosity, to learn ways to do things
If that’s the spirit of the people I’m working
better.
for, the ethics and values they encompass,
then… you might as well pour me another
I have a lot to be grateful for, and my list
glass.
would be similar to many individuals reading
Article by Julie Martin,
this. I have a job, a loving family, and great
FarmFirst Dairy Cooperative
friends. I enjoy many freedoms that are
Dedicated to serving and representing you, our family farm members, FarmFirst Dairy Cooperative represents farms in Wisconsin,
Minnesota, South Dakota, Michigan, Iowa, Illinois and Indiana through policy bargaining, dairy marketing services, laboratory testing
opportunities and industry promotion.
Cooperative Happenings
C O NTAC T I NFO R M ATI O N
Members Gathered for Third Annual Meeting
BOARD OF DIRECTORS
Members of FarmFirst Dairy Cooperative gathered
for their third annual meeting on Feb. 13-14
in Onalaska, Wis. to discuss critical industry
issues and ways to enhance their farm’s bottom
line in addition to providing direction for the
cooperative’s leaders.
President: Peter Kleiman
Wilson, Mich. 906-497-5350
Vice President: Richard Meyer
Unity, Wis. 715-223-2058
Secretary: Kathy Bauer
Faribault, Minn. 507-332-2870
Treasurer: John Rettler
Neosho, Wis. 920-625-3237
Member-at-Large: Mark Ryan
Fond du Lac, Wis. 920-923-3528
David Allen – Reedsburg, Wis. 608-524-4786
Randy Geiger – Reedsville, Wis. 920-772-4184
Wayne Hansen – Van Dyne, Wis. 920-922-0203
Kelly King – Edgar, Wis. 715-581-3850
Lee Klumpers – Waupun, Wis. 920-229-3489
Joe Schmitt – Holy Cross, Iowa 563-552-1135
Dave Schmitz – Fond du Lac, Wis. 920-921-4212
Brian Wozniak – Stanley, Wis. 715-703-0361
Ken Wunderlin – Livingston, Wis. 608-943-6496
Jim Mulhern, President of
NMPF, addresses delegation.
This year’s annual meeting included a visit from
the National Milk Producers Federation (NMPF)
CEO and President, Jim Mulhern, who spoke to
the group about national and international policy
issues, including geographical indicators, trade
agreements and the status of the global dairy
market.
“Dairy farmers and processors here in Wisconsin and surrounding Midwest states
have a great deal riding on the outcomes of the TPP trade negotiations, and this
leadership from the state’s Congressional delegation is key to helping ensure our
farmers get a fair deal,” says Mulhern.
Mulhern also spoke about NMPF’s National FARM (Farmer’s Reassuring
Responsible Management) program, which was established to enhance consumer
confidence regarding the animal welfare practices on dairy farms across the
country.
“Consumers are genuinely concerned about animal care on farms, and
expectations have risen across the food chain in recent years,” notes Mulhern.
“The FARM program was established to demonstrate the good care dairy farmers
commit to providing their animals.”
Be sure to visit us at an
upcoming tradeshow!
(Listed on page 6)
MAILING ADDRESS
P.O. Box 14380
Madison, WI 53708-0380
MADISON LOCATION
4001 Nakoosa Trail, Suite 100
Madison, WI 53714
(608) 244-3373
visit us on
FarmFirstDairyCooperative.com
Like us on Facebook at
www.facebook.com/FarmFirstDairyCooperative
The delegates at the annual meeting
also received a visit from Congressman
Ron Kind, representing his district from
western Wisconsin. His involvement with
the Ways and Means Subcommittee has
been influential in helping move these trade
agreements to the forefront of policy priorities.
This year’s annual meeting theme was
‘Partnering to Build a Better Industry’ which
seemed very fitting for this year’s guest
speakers.
Ron Kind received a warm welcome
as he came to speak with and listen to
the delegation’s concerns.
“It is an honor to have Ron Kind and Jim Mulhern speak to our membership,” says
David Cooper, General Manager of FarmFirst Dairy Cooperative. “Their message
here today echoes the theme of our annual meeting of partnering together to build
a better industry. Indeed, it is necessary for cooperation and collaboration on these
larger issues in order to achieve true success.”
The business meeting included recognition of the past year’s scholarship recipients,
which included 30 individuals being awarded over $26,000. Thirteen individuals
thanked the delegation personally during the business meeting for making youth
Continued on Page 4...
··· 2 ···
Government & Legislative Update
TPP Trade Agreement Hits
Critical Stage
EPA Withdraws Interpretive Rule
Efforts by trade negotiators in the TransPacific Partnership (TPP) agreement have
been ramping up over the past several weeks
and congressional leaders are weighing in on
critical issues as discussions continue. There
are obvious advantages in this 12-country
(Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico,
New Zealand, Peru, Singapore, the United States, and Vietnam)
partnership agreement across a number of sectors in the economy,
including agriculture. At the heart of this for dairy is ensuring market
access. The challenge with market access is that it has two sides in
the equation; one is what TPP will do to grant greater access to the
U.S. market and what TPP will do to give greater access to markets
like Japan, Canada and others in the partnership.
One specific concern in access given is that of New Zealand,
who has a unique trade structure much different than the other
countries. Our position has long been that granting greater access
to the U.S. dairy market for New Zealand is inappropriate and
unwarranted, unless New Zealand makes significant reforms to
its system to address their anti-competitive export dairy policies.
A TPP that would grant greater access to the U.S. dairy market
for countries like New Zealand, and fail to grant any significant
increase in access to the Canadian and Japanese dairy markets,
would be an obvious net loss for U.S. dairy.
Since last year, there has been concern how the “interpretive
rule” or regulatory guidance provided by the U.S. Environmental
Protection Agency (EPA) would apply to farmers as the EPA
worked to implement the regulations in the Clean Water Act. The
guidance at that time included a number of far reaching provisions
and unclear intentions on practices which were already in place
for farming activities near wetlands. As producers have worked
with USDA’s Natural Resources Conservation Service to find the
best practices in these areas, those items found in the interpretive
rule may have actually discouraged water conservation and
environmental best practices in many peoples opinion.
On Friday, January 29, the EPA and the U.S. Department of
Army signed a memorandum withdrawing the “Interpretive Rule
Regarding the Applicability of Clean Water Act Section 404(f)
(1)(A).” This has been an area that FarmFirst Dairy Cooperative
and its partners have been working on because of the concern of
the initial proposal having the risk of altering the long-standing
and productive relationship that farmers and NRCS have had
in implementing water conservation measures. This is a positive
step forward in having the EPA and Army recognize that working
together with producers on this regulation is most valuable, rather
than implementing a regulation that served to hurt an already
collaborative approach.
The EPA guidance, officially called an Interpretive
Rule, was issued in March 2014. It said farmers are
only exempt from needing Clean Water Act permits
for more than 50 routine farming practices if they
comply with detailed NRCS technical conservation standards.
Historically, these standards have been voluntary, and the farming
practices exempt from the permit process. Had the interpretive rule
not been withdrawn, “the NRCS would have been thrust into the
role of enforcer, rather than remaining a source from which farmers
could seek conservation advice.
Therefore, our efforts turn to ensuring greater access to Canada
and Japan. House Ways and Means Committee Chairman Paul
Ryan (WI) recently sent a strong message regarding this access by
noting that they must open their markets to U.S. dairy farmers or
not be part of the final trade agreement. He also spoke against the
efforts by the European Union to create barriers to U.S. exports of
cheese and other products by using geographic indicators, an area
FarmFirst has repeatedly condemned. We will be in Washington
D.C. in early March to speak to representatives on these trade
issues and other critical policy initiatives.
Need for Permanent Section 179
Last fall, FarmFirst Dairy Cooperative
worked with legislators to obtain the
needed Section 179 business tax
acceleration on capital purchases which
had expired and reverted back to a $25,000 level from the previous
value of $500,000. This effort netted an extension of the provision
for 2014 which was critical for members who had made further
capital investments in their operations. With an extension rather
than permanent legislation in 2014, our focus in 2015 regarding
taxes turns to obtaining permanent legislation. By setting permanent
legislation, producers could again have $500,000 annual expensing
with a 50% bonus depreciation for the purchase of new capital assets,
including farm equipment. This would provide much greater financial
certainty for dairy producers especially when lower income levels are
seen. The House of Representatives recently passed H.R. 636 by a vote
of 272-142 to permanently extend the provision, however the measure
moves to the Senate with an uncertain outcome. Now is the time to
express the importance this provision has in your operation and how
these capital purchases impact your business. This has been important to
our members, so we are at the table working to make this possible.
··· 3 ···
Industry Happenings
Continued... Members Gathered for Third Annual Meeting
and higher education one of the
cooperative’s priorities.
Cooper addressed the delegation by
sharing his gratitude of the members
and the valuable relationships that
make the dairy industry strong.
‘Partnering to Build a Better
“There has always been a sense of
Industry’ was this year’s
partnership of working together to
annual meeting theme.
get the job done. The dairy industry
has changed a lot over the years, and will continue to change a
lot more in the years
ahead, but how we
work together doesn’t
need to change if there
is a commitment to
dedication, hard work,
honesty and integrity,”
says Cooper.
Scholarship recipients were present to
The official start of
express their gratitude and apprecation.
the annual meeting
for FarmFirst Dairy Cooperative began the day before with its
Producer Discovery workshops in the afternoon. Sandy Stuttgen
from UW-Extension in Taylor County kicked off the workshop
series discussing the importance of maintaining quality meat
when culling dairy cattle, and the considerations that should
be made when evaluating their body conditioning. Alan Levitt,
Vice-President of Communications with the U.S. Dairy Export
Council, gave a fresh perspective on global dairy exports,
reminding producers of the dairy factors involved with the overall
milk price and how that may affect future month’s milk prices.
Carol Magurany-Brotski from the National Farm Medicine Center
ended the workshop series by sharing several statistics regarding
farm safety and how small oversights can cause major accidents,
for family members and farm visitors.
dedication to the cooperative and it’s predecessors in addition to
the dairy industry as a whole. Jim Bird retired from FarmFirst Dairy
Cooperative this past year, marking the
end of his career of over four decades of
advocacy and policy reform in the dairy
industry.
“It’s been a great experience,” says Bird,
thinking back on all his years and friends
in the industry. “We’ve accomplished a
Director Mark Ryan
lot of things and helped a lot of people
congratulates Jim Bird on
through some tough times. That’s what
his dedication and years
of service to the industry. it’s all about.”
Another tradition that takes place at the annual meeting includes
a silent auction. This year, a live
auction was also held in addition
to the silent auction, both of
which help raise funds for youth
education activities including
scholarships and youth dairy
events. We appreciate the many
supporters (listed on page 5) and those who participated in this
annual fundraising event.
Young Cooperator Committee
Meets for First Time
At the Friday evening banquet, retired board members that had
retired this past year were recognized, including Bernie Vander
Heiden of Kaukauna, Wis., Randy Peterson of Wilson, Wis., and
Francis Cherney of Milladore, Wis. Jim Bird was also awarded
the Meritorious Service award in recognition of all his years and
The Young Cooperator
Steering Committee
gathered for the first time
to discuss their goals
as a young FarmFirst
producer and committee
member. Learn more
about the YC program
in the coming months as
activities are coordinated. Interested members
should sign up to be on a
mailing list.
Missed our Producer Discovery Workshops? No problem!
Check out our speakers by visiting our website to view a brief video and learn what they had to share.
Listen to Sandy Stuttgen
Listen to Alan Levitt
discuss the value of quality
describe what the world
meat from dairy cattle when
dairy market will look like in
it comes time to cull cattle.
the coming months.
Listen to Carol Magurany-Brotski share a fresh
perspective on the safety
precautions you should
consider on your farm.
FarmFirst Rejects Additional
Program Cuts
MPP Tracker
All-Milk
Price
MPP
Feed Cost
MPP
Margin
July 2014
$23.30
$10.63
$12.67
Aug 2014
$24.10
$10.36
$13.74
Sept 2014
$25.70
$10.30
$15.40
Oct 2014
$24.90
$9.28
$15.62
Nov 2014
$23.00
$9.61
$13.39
Dec 2014
$20.40
$9.74
$10.66
Jan 2015
$17.60
$9.26
$8.34
Month
We have joined
organizations throughout
America’s agriculture,
nutrition, conservation,
rural development,
finance, forestry, energy,
trade, labor, equipment manufactures and crop
insurance sectors to strongly urge congressional
leaders to reject calls for additional cuts to programs
within the jurisdiction of the Senate and House
Agriculture Committees. When the 2014 Farm
Bill finally passed, three years of prior debate in
both chambers of Congress had resulted in the
consolidation of over 100 programs and cuts to
mandatory spending across many titles, including the
elimination of the direct payment program. Those
cuts came in addition to those already in effect due
to sequestration and the results netted bipartisan
legislation resulting in an estimated contribution of
$23 billion in deficit reduction over the 10 years when
including sequestration.
Two-Month
Average
$13.21
$15.51
$12.03
N/A
**Material is referenced from ‘Understanding Dairy Markets’ which is affiliated with the
Wisconsin Center for Dairy Research. Two-month averages are estimates by FarmFirst.
Note: The next MPP Sign-Up is July 1 - September 30, 2015 for
coverage in 2016.
Those challenging cuts were made across farm safety net, conservation,
and nutrition programs. Policy changes and reforms associated with those
cuts are just now being implemented by USDA. We oppose re-opening
any title of the Farm Bill during the consideration of the 2016 Budget
Resolution and are urging leaders to refrain from including reconciliation
instructions for either the Senate Committee on Agriculture, Nutrition,
and Forestry or for the House Committee on Agriculture.
Sponsorship Available for PDPW’s Youth Leadership Derby - April 18-19
Join in on this two-day, overnight educational experience at PDPW’s Youth Leadership Derby!
This Youth Leadership Derby is designed for high school students (ages 15-18) who want to dive in and
explore more than 20 future agricultural-related career opportunities. With hands-on, lab dissection
and exposure to diverse careers, you will see the opportunities that agriculture has for you. This year’s
derby also includes Kansas Farmer and YouTube sensation, Greg Peterson as a featured speaker!
Take the next step to grow your leadership skills while discovering an exciting career
path. Contact the office at 608-244-3373 or [email protected] by April 10 for more information
on registration. Sign up today!
Thank You Annual Meeting Supporters!
AgSource Cooperative Services
Animart
Badgerland Financial
BelGioioso Cheese
Bob & Bev Hodgson
Bonnie Mohr Studios
Charm Sciences, Inc.
Chernov, Stern & Krings
Chula Vista Cheese
Clifton Larson Allen LLP
Comfort Inn & Suites
Dairy Management, Inc.
FCStone
F & A Dairy Products
Galloway Company
Maple Grove Cheese
Midwest Dairy Association
Mullins Cheese
Nelson-Jameson, Inc.
NorthStar Cooperative, Inc.
Pat Yeagle
Peter & Joyce Martin
Radisson Paper Valley Hotel
Randy & Rosalie Geiger
Rich & Judy Meyer
Sartori Cheese
Semex USA
Steel Cow
Steimle Birschbach, LLC
Stoney Creek Inn & Conf. Center
The Insurance Center
The Murphy Insurance Group
··· 5 ···
Thysse Printing Service
Udder Tech, Inc.
USAgnet
Valley Queen Cheese Factory
Wapsie Valley Creamery
Winner’s Circle
Wisconsin Beef Council
World Dairy Expo
Wisconsin Livestock Id.Consortium
Wisconsin Milk Marketing Board
Federal Milk Order
Market Information
JANUARY 2015
Order Name and Number
Producer Milk (lbs.)
Producer Price Differential @ base zone
Statistical Uniform Price/cwt @ 3.5% BF*
Class I Price/cwt
Class II Price/cwt
Class III Price/cwt
Class IV Price/cwt
Component Prices & Test Avg. % aves
Butterfat/lb.
$ 1.6855
Protein/lb.
$2.6731
Other Solids/lb.
$0.40010
SCC Adjust Rate/1000
$0.00079
Producer Milk Classified %
Class I
Class II
Class III
Class IV
UPPER MIDWEST
Order 30
3,108,850,698
$0.21
$16.39
$ 20.38
$16.18
$16.18
$13.23
CENTRAL
Order 32
1,424,256,883
$0.36
$16.54
$20.58
$16.18
$16.18
$13.23
MIDEAST
Order 33
1,688,999,853
$0.49
$16.67
$20.58
$16.18
$16.18
$13.23
3.87%
3.16%
5.74%
3.88%
3.20%
5.75%
3.84%
3.17%
8.91%
10.20%
5.00%
81.00%
3.80%
100.00%
30.53%
9.07%
46.79%
13.61%
100.00%
33.10%
18.60%
32.70%
15.60%
100.00%
PRESORTED STD
US POSTAGE
PAID
MADISON, WI
PERMIT NO. 1
Happy St. Patrick’s Day!
Welcome New Members
We would like to welcome these individuals and farms
that have joined FarmFirst Dairy Cooperative during
Ervin & Louella Brubaker
Jere Stewart
the past year. We look forward to your participation
Linus & Mary Jane Nolt
Matthew Welsh
and involvement in the programs and services of your
Betty Hardyman
Vernon Brubaker
cooperative where we put members first.
Jerry Hardyman
Ryan Barlass
Abbey Olson
Sietse Andringa
Beau Rindy
Jonathan & Pauline Brubacker
Robert Grunewald
Jared Vosberg
Bruce Droessler
John & Julie Dobberpuhl
Cleon Weaver
Mark Schmidt
Joshua & Barbara Hicks
Calvin & Mariada Hoover
Randy Blaha
UpcomingTradeshows
PDPW Annual Business Conference, Madison, WI – March 18-19 - Booth #351
Come Visit Us!
Wisconsin Public Service Farm Show, Oshkosh, WI – March 24-26 -Booth #D6609
Central Plains Dairy Expo, Sioux Falls, SD – March 24-26 - Booth#200