Digest highlights

Natzke dave
Dave Natzke
Editor / Progressive Dairy

Two more dairy projects receive ‘climate-smart’ funding

The USDA released a list of 71 projects receiving grants under the second funding pool of the Partnerships for Climate-Smart Commodities program. The second pool – totaling $325 million – focused on innovative projects with an emphasis on enrolling small and underserved producers and investing in measuring, monitoring, reporting and verifying the benefits of climate-smart practices at minority-serving institutions.

There are two dairy projects funded in the second pool.

One, led by Dairy Grazing Apprenticeship Inc., is designed to make direct payments and provide technical assistance to small-scale dairy farmers implementing grazing management. With a maximum funding ceiling of $4.77 million, the project would cover 14 states: Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Dakota, South Dakota, Vermont, Virginia and Wisconsin.

A second project, with a funding ceiling of $4.99 million, would provide direct financial and technical assistance and incentives to support implementation of climate-smart production and niche market development of premium dairy products. Located in Wisconsin, the project is led by the Fox-Wolf Watershed Alliance, partnering with the Wisconsin Farmers Union, Pheasants Forever, Outagamie County Land Conservation, Land Cares, Brickstead Dairy LLC, Deer Run Dairy LLC and Seven Oaks LLC.

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Last September, the USDA announced 70 projects receiving $2.8 billion from the first funding pool. Projects receiving grants in that pool included large-scale pilot projects that emphasized the greenhouse gas benefits of climate-smart commodity production and featured a large number of dairy-related organizations and projects (Read the Sept. 14, 2022, Progressive Dairy Weekly Digest: ‘Dairy’ major recipient in first round of USDA ‘climate-smart’ project funding)

Funded through the USDA’s Commodity Credit Corporation, the total investment from both funding pools is over $3.1 billion for 141 selected projects. For additional details and a list of all approved projects, click here.

13 named to National Dairy Board

Thirteen dairy farmers have been named to the National Dairy Promotion and Research Board (NDB), with terms effective immediately.

Newly appointed members serving three-year terms, through Oct. 31, 2025, are:

  • Jennifer Julie De Boer, Roger Fluegel, Rebecca Andrus Nyman and Ted Anthony Joseph Pedrozo, all serving California (Region 2)
  • David Roberts, Utah (Region 3)
  • Tara McCrory Vander Dussen, New Mexico (Region 4)
  • Gail Gena Klinkner, Wisconsin (Region 6)
  • Laura (Lolly) Lesher, Pennsylvania (Region 11)
  • Valerie A. Lavigne, New York (Region 12)

In addition, Janna Irene Scott, California, (Region 2) was appointed to a two-year term, ending Oct. 31, 2024.

Reappointed members serving three-year terms are: Justin Frank Leyendekker, California (Region 2); James William Reid, Michigan (Region 9); and Joanna Bowman Shipp, Virginia (Region 10).

The NDB is composed of 37 members: 36 members represent 12 geographic regions within the U.S., and one member represents importers. They develop and administer advertising and promotion programs designed to increase the demand for dairy products and ingredients. Activities are financed by a mandatory 15-cent-per-hundredweight assessment on milk for commercial use and 7.5-cent-per- hundredweight assessment on milk imported.

Thompson elected House Ag Committee chair

The transition to the leadership in the 118th Congress is already underway. With Republicans taking a majority in the House, the House Republican Steering Committee elected U.S. Rep. Glenn “GT” Thompson (R-Pennsylvania) as chair of the House Committee on Agriculture.

Rep. David Scott (D-Arkansas), who chaired the House Ag Committee during the 117th Congress, is expected to serve as ranking member in the next congressional session, set to begin Jan. 3, 2023.

Canada’s AAFC announces CUSMA dairy compensation

The Canadian government will compensate its dairy producers and other segments of agriculture for financial losses attributed to the Canada-United States-Mexico Agreement (CUSMA).

In a November 2022 announcement from the Ministry of Agriculture and Agri-Food Canada (AAFC), about $1.7 billion (dollars Canadian) will be distributed through direct payments and investment programs to help dairy, poultry and egg processors and producers.

Specific to dairy, about $1.2 billion (dollars Canadian) will be offered to dairy producers over a six-year period under the Dairy Direct Payment Program, created to account for the impacts of CUSMA (called the U.S.-Mexico-Canada Agreement, or USMCA, in the U.S.).

According to an AAFC press release, the owner of an 80-cow dairy may receive about $106,000 in six yearly installments on a declining scale from 2024 to 2029. Based on 2021 production, the compensation for a dairy producer with an average herd of 80 head will be $26,507 (25%) for 2024, $22,089 (21%) for 2025, $22,089 (21%) for 2026, $13,253 (13%) for 2027, $13,253 (13%) for 2028 and $8,835 (8%) for 2029.

Additional application details are expected to be made available in the spring of 2023.

Previously, AAFC had committed over $1.75 billion to compensate dairy producers negatively impacted by the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Another $250 million was available to producers through the Dairy Farm Investment Program, helping dairy producers improve productivity through equipment upgrades.

Under the latest announcement, the Canadian government intends to invest up to $105 million in the Supply Management Processing Investment Fund to support equipment and automation technology investments in dairy, poultry and egg processing plants.

Also, starting in 2023, the Ministry of Agriculture and Agri-Food Canada intends to invest up to $300 million in a new program to support innovation and investment into large-scale projects to add value to solids-nonfat milk processing.

Other news, briefly

  • Raw milk in Missouri: Two bills have been filed legalizing the retail sale of Grade A raw milk in Missouri. The proposals – HB78 in the Missouri House and SB86 in the state Senate –would legalize the sale of “Grade A retail raw milk or cream” produced in Missouri at grocery stores, restaurants or other establishments, as long as the milk is clearly marked with a specified warning label. Missouri law currently limits raw milk sales direct from farms to consumers. Missouri’s General Assembly convenes on Jan. 4, 2023.
  • DMC premium reimbursement in Vermont: Approximately $1.1 million in state funds will be available for Vermont dairy producers enrolling in the Tier I 2023 Dairy Margin Coverage (DMC) program. The Vermont Legislature previously approved $2.6 million in DMC premium reimbursement funding for 2022-23. Approximately $1.5 million was distributed in 2022. Reimbursement for the Tier 1 premium will occur after the full premium payment is made to the USDA. Application deadline to the Vermont Agency of Agriculture, Food and Markets is due by July 1, 2023. Reimbursement is made on a first-come basis, and after funds are exhausted, applicants will be ineligible unless or until additional funds are appropriated. The USDA’s Farm Service Agency has extended the 2023 DMC enrollment and coverage election period until Jan. 31, 2023.