How will DOGE review of USDA impact dairy? It’s complicated.

Posted on February 21, 2025 by Agmoos

By Sherry Bunting, Farmshine, Feb. 21, 2025 (with updates after print publication)

WASHINGTON – Upon reading the Feb. 14 news release about USDA’s 78 terminated contracts totaling $132 million, as identified in the ongoing review by the Department of Government Efficiency (DOGE), we noticed only 10 examples were given, totaling only $4.21 million. Reports had surfaced about Conservation Districts receiving project or program termination notices via email, and a few farmers communicated their concern about frozen funding for grant reimbursements.

So, we looked into it.

One email notice that Farmshine was able to view, dated Feb. 14, for a project in a Colorado Conservation District, stated the reason in the subject line: “The project no longer effectuates agency priorities regarding diversity, equity, and inclusion programs and activities.”

However, the notice also clearly stated that final payments would be made on work already conducted for the terminated project — as long as the final reports and final payment requests are submitted within 120 calendar days of the notice.

We emailed the USDA press office on Feb. 18, as follows:

“A few farmers have communicated about canceled contracts or frozen funds related to conservation projects, some in which projects were started or planned, and these farmers were expecting reimbursement through grants. The news release about the $132 million in canceled contracts lists 10 things as examples outside of the core mission of USDA, but these examples only total $4.21 million, not $132 million. Where can we find a list of the balance?”

The press office turned our request over to the Freedom of Information Act (FOIA) officer at the USDA Farm Production and Conservation Business Center, who promptly responded by email on the very same day, Feb. 18, directing us to a government information specialist who could help us file an official FOIA request.

The specialist answered our call on the first try that same day (Feb. 18). Our official FOIA request was modified to seek a listing of the 78 terminated contracts referenced in the USDA press release. This experience runs contrary to what some in the mainstream media have reported about FOIA officers being “gone.”

In fact, we received a follow up email the next morning (Feb. 19) with additional information and a link to https://doge.gov/savings, where all terminated contracts throughout all federal agencies will be updated twice a week. USDA ranks 5^th in the top 10 federal agencies in amount of savings as of Feb. 18.

A look at the listing shows zero terminations of any on-farm conservation project contracts.

Furthermore, $100 million of the $132 million is accounted for in the four separate $25 million contracts with four separate consulting companies, mostly located in the Capitol region, for “Diversity, Equity, Inclusion and Accessibility (DEIA) Assessment and Training Services” within the USDA’s Food and Nutrition Service, or FNS.

(Just think how much of the currently banned whole milk — which former Ag Sec. Vilsack said schools cannot afford anyway — could be purchased for the FNS-controlled National School Lunch Program with such savings!)

Also terminated was a contract with a Vermont consulting firm for “Environmental Compliance Services for the implementation of Partnership for Climate-Smart Commodities.” Even though this $8.2 million award had already been paid, the termination prevents additional orders.

While the government information specialist cannot answer abstract questions, she did indicate that conservation projects through EQIP and NRCS — that are attributed to the farm bill — are not included in the contract terminations. However, Climate Smart projects under the Inflation Reduction Act (IRA) were included in the funding that was ‘on hold’ for review.

Then USDA announced in a Feb. 20 press release that, “Secretary Rollins will honor contracts that were already made directly to farmers. Specifically, USDA is releasing approximately $20 million in contracts for the Environmental Quality Incentive Program, the Conservation Stewardship Program, and the Agricultural Conservation Easement Program.”

This is the first tranche released from the ‘pause’ as USDA continues to review IRA funding “to ensure that we honor our sacred obligation to American taxpayers—and to ensure that programs are focused on supporting farmers and ranchers, not DEIA programs or far-left climate programs,” the press release stated.

We also learned from other sources that commodity checkoff programs are part of the broader DOGE review of all USDA activities for the purpose of evaluating, and potentially reforming both spending and policy in agriculture.

The dairy promotion and research program, funded by the 15 cents per cwt checkoff, is one of 22 such mandatory commodity programs overseen by USDA AMS. According to repeated statements by dairy checkoff leaders over the past five years, this oversight involves USDA AMS reviewing all checkoff-funded activities, including for USDA staff attending all DMI meetings “even conference calls.”

This oversight comes at a cost. Of the 2022 and 2023 financial statements available for Dairy Management Inc (DMI), National Dairy Promotion and Research Board (NDB) and the consolidated United Dairy Industry Association (UDIA) and National Dairy Council (NDC), only the NDB listed USDA Oversight as a line item under its operating costs, totaling just under $1 million annually, along with a collections and compliance line item totaling just over $500,000.

How might the DOGE algorithms decipher these costs and engagements, given both USDA and DMI have contracted with NGOs like World Wildlife Fund (WWF)?

How might it interpret WWF’s published playbook of leveraging the supply-chain of 300 to 500 companies controlling 70% of consumer food choices?

WWF’s playbook uses the consolidation in the middle (above) to move the much larger number of food producers and food consumers toward implementing their sustainability goals, the so-called ESGs (Environmental, Social, Governance) that focus on DEI, biodiversity, and their particular take (and flawed math) on the climate impact of methane emissions from cattle, disregarding the carbon cycle that is the essence of life.

In fact, upon being provided with the link to USA Spending as part of the response we received from the current administration regarding our FOIA request, we found that the federal government has awarded the NGO World Wildlife Fund (WWF) more than $500 million since the start of the Obama administration in 2009. The bulk of the funds were awarded in 2022-24 during the Biden administration.

Of the over $500M, USAID awarded WWF $310M; the Department of Interior awarded WWF $149M; and USDA awarded WWF $36M, with other federal agencies rounding out the total. ($500M is a large sum that the mainstream media refer to as “merely a rounding error” next to the $36T (trillion) in national debt, but where else do these layers lead in terms of money and policy?)

We already know that the dairy and beef checkoffs began their alliances with WWF in the 2008 to 2010 time frame — when the work to develop their Net Zero and Sustainability platforms for dairy and beef producers began, and really ratcheted up by 2021.

Contracts with NGOs in other departments of the federal government have also been terminated through the DOGE reviews, especially via USAID, according to repeated press reports. What more may we learn from the DOGE review on potential entanglements between USDA, checkoff programs, NGO’s like WWF, and the food industry — that are not truly farmer-led but impact farmers?

To-date, there are no indications that the USDA AMS administration of the Federal Milk Marketing Orders are part of the DOGE review; however, it’s possible, depending on how these FMMO administration costs are allocated.

According to the Congressional Research Service (CRS), the 1937 Agricultural Marketing Agreement Act gives USDA several authorities in Federal Milk Marketing Orders (FMMO) that are administered through Dairy Programs under AMS. The associated costs of FMMO administration, according to the CRS “are partly covered by an assessment levied on handlers at no more than five cents per cwt., which is often passed on as deductions on farm milk checks.

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Rollins confirmed 33rd Ag Secretary; Aggressive agenda unfolds

Posted on February 21, 2025 by Agmoos

By Sherry Bunting, Farmshine, Feb. 21, 2025

WASHINGTON, D.C. – The U.S. Senate confirmed Brooke Rollins 72-28 on February 13^th as the 33^rd Secretary of Agriculture, and the second woman to lead the USDA. On Friday, Feb. 14, she was sworn in and addressed a gathering of over 400.

Rollins pledged to bring greater efficiency to the USDA to better serve farmers, ranchers and the agricultural community.

“We welcome the DOGE efforts because its work makes us better, stronger, faster and more efficient,” said Rollins of the review of USDA already underway by the Department of Government Efficiency (DOGE), headed by Elon Musk.

She announced an end to identity politics, pledging equal dignity.

Rollins also said the USDA will be “returned to its basic purpose,” with a focus on its core missions of supporting American farming, ranching, and forestry.

In a Feb. 14 news release, Rollins noted that the DOGE review continues to be comprehensive and announced the first tranche in a series of reforms.

USDA is currently reviewing more than 1000 contracts for possible termination. The department has already terminated 78 contracts, which totaled more than $132 million. Some of these contracts were proposed procurements that were discontinued before they went into effect, according to the news release.

The news release gave 10 examples of terminated contracts, which totaled just $4.21 million. Ending Politico subscriptions at $2.77 million, represented the bulk of the money in the examples. Other items listed ranged $30,00 to $300,000, such as Diversity, Equity and Inclusion (DEI) ‘onboarding’ specialist, Diversity Dialogue Workshops, a Brazilian Forest and Gender Consultant, a Women and Forest Carbon Initiative Mentorship Program, an international training and education for women to increase their participation in climate change adaptation, and a Central American Gender Assessment Consultant.

Rollins also rescinded all DEI programs, including 948 employee trainings focused on DEI, Environmental Justice, and gender ideology.

The Department is pursuing an aggressive plan to “optimize its workforce by eliminating positions that are no longer necessary, bringing its workforce back to the office, and relocating employees out of the National Capital region into our nation’s heartland to allow our rural communities to flourish,” she said.

On her second (Feb. 15), Rollins met with farmers at the Championship Tractor Pull in Kentucky, then traveled to southwest Kansas Monday (Feb. 17) to tour dairy and beef operations and have a producer roundtable with Senator Roger Marshall, M.D., prime sponsor of the Whole Milk for Healthy Kids Act in the U.S. Senate.

Reform of the Dietary Guidelines was mentioned in a tweet from these discussions, something Secretary Rollins will work on jointly with HHS Secretary Robert F. Kennedy Jr., also confirmed Feb. 13 in a narrow Senate vote.

At the Top Producer Summit in Kansas City, Mo., Tuesday, Feb. 18, Rollins addressed expanding trade access and cutting regulatory red tape for farmers. She also announced looking toward federal policy to prevent China from buying U.S. farmland.

USDA Secretary Rollins was also appointed this week by the Trump Administration to work together with National Economic Council Director Kevin Hassett — collaborating with scientists and global experts — to spearhead a new avian influenza strategy that moves away from mass euthanization of infected poultry flocks to prioritize enhanced biosecurity measures and medication to control spread.

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‘Farmers will be at the table’ (Rollins confirmed Ag Secretary)

Posted on February 13, 2025 by Agmoos

Brooke Rollins — now on Feb. 13, 2025 confirmed as the next Secretary of Agriculture and the second woman ever to lead the USDA — stands to be sworn in for testimony during her confirmation hearing before the U.S. Senate Ag Committee back on Jan. 23. She was joined by a room full of family, friends, colleagues, her high school Ag teacher, fellow 1990-91 state FFA officers, the little league softball team she coaches, and a pastor from Georgia who prayed with her and her family that morning. Senate Agwebsite livestream screen capture by Sherry Bunting

Rollins pledged ‘fast and furious’ first 100 days.

By Sherry Bunting, Farmshine, Jan. 24, 2025

WASHINGTON, D.C. — The growing U.S. Agriculture trade deficit was a key topic when on Jan. 23, President Trump’s nominee for Secretary of Agriculture, Brooke Rollins, gave testimony and answered four hours of questions before the U.S. Senate Committee on Agriculture, Nutrition and Forestry.

(UPDATE: Rollins was confirmed by the full Senate on Feb. 13, 2025)

Along with the trade deficit, Senators were keen to talk about Trump’s trade policies and tariffs, while also asking questions that covered everything from immigration and the ag workforce, to biofuels, the farm bill, SNAP, WIC, and other feeding programs, as well as revitalization of rural communities and preparing the next generation.

Rollins even had an important exchange with Senator Roger Marshall, a medical doctor from Kansas, about bringing the choice of whole milk back to schools. (See related story here.)

Both Texas Senators John Cornyn and Ted Cruz introduced Rollins, calling her nomination “a no-brainer.”

She grew up in the small agricultural town of Glen Rose, Texas, where she was a barrel racer, a state FFA officer, helped make hay on the ranch, and raised and showed cattle in 4-H. She also spent some summers on the farm of extended family in Minnesota.

An admitted “policy wonk,” she earned her Ag Leadership and Development degree at Texas A&M and her Law degree, with honors, at the University of Texas School of Law.

“Everyone who knows Brooke, loves Brooke, and I know you will too as you get to know her,” said Sen. Cornyn.

Sen. Cruz highlighted her proven leadership, “profound appreciation for the challenges and rewards of life in agriculture,” reputation as an “independent policy thinker” and as a person who can “bring people together to accomplish major policy objectives.”

In her opening testimony, Rollins acknowledged that farmers and ranchers are currently facing “extraordinary challenges.”

She credited her FFA years for putting her on a course for where she is today and said it would be her great honor to “serve the men and women, who daily without pause or complaint provide our great nation and the world with the best food, fiber and fuel. It is clear farmers and ranchers are the cornerstone of our communities, and I will do everything in my ability to make sure (they) thrive.”

When asked to describe her first 100-days, she used the words “fast and furious,” especially in delivering into the hands of farmers and ranchers the disaster and economic relief recently passed by Congress.

On biofuels, she noted the President included year-round E15 fuels in his energy emergency proclamation.

Pressed for hope on the current $45 billion U.S. Ag trade deficit. Rollins said a key priority will be to expand access to export markets.

“We are vision-boarding to hit the ground running to bring that trade deficit down. It is up 42% in the last year,” she said. “Agriculture is in a tough spot right now in moving our products out. The USMCA is up for renegotiation, and other trade agreements.”

Rollins stressed that she will be working with Congress to be sure the White House and partners across agencies have what they need “to work across the world to bring in new trade partners to expand access to new markets.”

At the same time, she addressed questions about the Trump tariff agenda, saying “This is no surprise. He believes it is a tool to bring America back to the forefront of the world. He also understands the potential devastating impact to farmers and ranchers. I have spoken with Sonny Perdue on how that was managed in the first term for something similar, to close any potential temporary holes.”

Keenly aware that farmers “want trade not aid,” that they want to “grow markets not government payments,” Rollins said: “President Trump is a consummate deal maker. I believe that his skill and intense focus is on making deals for his people, not only for America, but for the Ag community that supported him at 90%. He knows that these are the people who have been with him the longest.”

Rollins served in the last Trump White House in key domestic policy roles. She is well versed in how Trump’s inter-agency process works, how discussions are handled, what the oval office meetings look like, and says she “will ensure our Agriculture community is strongly represented at that table.”

She gave the example of working with the incoming Labor Secretary, if confirmed, on the immigration and ag workforce needs, and asked the Senate to quickly confirm nominated undersecretaries to get the ball rolling.

Several Senators said they see Rollins, if confirmed, bringing this “value add” to the Ag cabinet position as someone who has been with the President for nine years. She knows how his White House process works and pledges to make sure “farmers will be at that table” with her job making sure “Agriculture is front and center where decisions are made.”

From trade and immigration to land management and regulation and from nutrition and hunger to preparing agriculture’s next generation, Rollins was clear: “We will follow the data, and we will listen to our farmers and ranchers as this is moving forward. We as leaders, as Agriculture, we will work together to understand and solve for these problems.”

Rollins cited these immediate priorities if confirmed as Ag Secretary:

— Ensuring disaster and economic relief that was passed by Congress at the end of 2024 is deployed quickly into the hands of farmers and ranchers;

— Working with the men and women of USDA and state leaders on animal disease outbreaks such as H5N1 in poultry and dairy cattle;

— Dedicating timely technical assistance to ensure a modernized farm bill moves forward that meets the needs of farmers and ranchers;

— Modernizing, restructuring, and re-aligning the U.S. Department of Agriculture;

— Supporting rural development to ensure rural communities are equipped and benefit from development of strong markets, including export markets;

— Eliminating burdensome and costly regulations;

— Preparing the next generation in agriculture; and

— Ensuring efficient nutrition programs for a healthy next generation.

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What’s on Covington’s 5-year milk market radar?

Posted on February 13, 2025 by Agmoos

Pennsylvania dairy producers were treated to a forward look at Calvin Covington’s milk market radar during R&J Dairy Consulting’s annual seminar. The bottom line is cheese, cheese, and more whey. Photo by Sherry Bunting

Cheese and whey, will continue driving bus, with big growth in processing capacity on the road ahead

By Sherry Bunting, Farmshine, Feb. 7, 2025

EAST EARL, Pa. – Looking at the milk markets for 2025, Calvin Covington sees farm-level milk prices in the Northeast averaging 25 to 75 cents per hundredweight higher this year. He said milk margins, nationally, averaged $11.86 for the first 11 months of 2024, and he expects similar good margins to prevail in 2025.

The caveat? These are forecasted averages, and farmers should expect price volatility in their income and input costs, along with the mixed bag of positive, negative, and unknown impacts from the Federal Milk Marketing Order changes implemented in the second half of the year. He expects butterfat prices to remain good, but lower in 2025; whey prices will be higher, but more volatile; and protein may be lower as huge new cheese processing capacity comes online

Covington mostly shared what’s on his radar for the next 3 to 5 years during R&J Dairy Consulting’s 18^th Annual Dairy Seminar, attended by more than 250 farmers at Shady Maple Smorgasbord in eastern Lancaster County, Pennsylvania on Jan. 28^th.

He remarked about the number of young farmers in the crowd, and pointed out that Lancaster County is the consummate dairy county in the U.S. — with more than 1100 Grade A dairies, producing over 2 billion pounds of milk last year, which is 4.5% of total U.S. output and more milk than half of the state totals across the nation.

Consumers: more cheese, more fat, more solids

“Cheese is driving the dairy industry, and consumers are consuming more milkfat. That’s what makes stuff taste good,” he said. “Cheese is one-third fat, and that’s one reason why milkfat consumption is growing.”

He also showed how increased fat consumption is demonstrated in fluid milk sales, with “whole milk coming up.”

This trend toward consuming products with more solids is also evident in ice cream sales, which are down, but the fat content is up; and in yogurt sales, which are flat, but move “more milk in the yogurt” in the form of more solids.

Now retired, Covington, a previous National Dairy Shrine Guest of Honor and World Dairy Expo Person of the Year, spent over 50 years working for dairy farmer organizations, including as a DHIA milk tester, CEO of American Jersey Cattle Breeders Association, and CEO of Southeast Milk Inc.

He said the total solids growth in the dairy sales is expected to continue, up from 27 billion pounds total a decade ago to 31 billion pounds in 2024.

The caveat, he said, is that “exports peaked a couple years ago at 17% of total milk solids, and last year (2024) was down at 16%. Exports are a big part of your market, but they have started to level off.”

When asked about imports, Covington said “they keep going up, especially on butterfat” as the U.S. now imports almost as much milkfat as it exports.

He noted increased consumer demand for Irish butter, which is made differently than U.S. butter, with more butterfat. “I hope we start making better-tasting butter in the U.S. instead of importing it,” he shared.

Amid the demand for milk solids, Covington said “it’s amazing what you are doing with your milk components as dairy farmers.” In the Northeast, producers are averaging 4.21 fat and 3.29 protein due to genetics and “the job farmers are doing with their nutritionists and feed companies.”

Covington demonstrated with 2023 vs. 2024 comparisons that farmers are increasing the amount of products made by increasing components year over year, instead of milk production and cow numbers.

Components are the big story on the supply side, a trend he also sees continuing. He doesn’t expect dairy cow numbers nor milk output per cow to go back to the year-over-year gains seen in the past any time soon.

With a chart he showed the stark 2024 vs. 2023 data: Cow numbers are down 47,000 head; replacement heifers sell for $600 more per head; average milk output per cow is flat; but average fat pounds per cow is up 2.7% and average protein pounds per cow up 1.2%. This means that even though total U.S. milk production at an estimated 225.9 billion pounds is down 0.2% from year-earlier, total fat pounds at 9.508 billion pounds are up 2.2%, and protein pounds at 7.431 billion pounds up 0.7%.

“You’re doing it with your components,” he said. “And that’s going to continue.”

Cheese (or maybe whey) is driving the bus

Putting aside the import and export caveats, Covington demonstrated that as the overall dairy market is growing, almost all of this growth has been in the cheese market, which has become a much bigger piece of the much bigger pie.

“Cheese has been driving the dairy industry for several years, and everything points to it driving the industry going forward,” he said, showing a chart of the product mix in the year 2000 when 167.4 billion pounds of milk was produced in the U.S., sold as half cheese, and one-third fluid milk, with 15% other products. This compares with 2024, when 225.9 billion pounds of milk was produced and 58% of the sales were in cheese, 20% fluid milk, and 22% other products.

Per capita trends also show “consumers are eating more of their milk instead of drinking it,” said Covington. “We have seen tremendous change since 1986, when consumers first started consuming more of their milk as cheese than as fluid milk. Look at 2023, people consumed 405 pounds of milk (equivalent) in the form of cheese and 128 pounds in the form of fluid milk.”

While home milk delivery is rare today, Covington said it happens now in the form of pizza.

“If I drive around the city on a Friday night, I’ve got to get out of the way of the pizza delivery people. I figure, on average, it takes a little over a gallon of milk to make one average size pizza. Just think how much home delivery we have today of milk, but in the form of something else, not the milkman dropping off half gallons,” he said.

“The market is changing, and it’s going to keep on changing.”

Why is cheese growing so much? Covington pointed to things he hopes are lessons for other products: 1) Convenience, innovation in packaging and varieties, with pizza accounting for 42% of all cheese; 2) Brand identity, there’s still a lot of this in cheese, not making it a commodity to try to get to the lowest price like in other dairy products (i.e. fluid milk); and 3) taste, people love cheese.

Big bets on the future

Big bets are being made for more cheese growth, and the revenue stream of whey ‘byproduct.’

“We are in a slurry right now of a pile of money being spent on new plant construction,” said Covington, listing the states of Kansas, Texas, South Dakota, Minnesota, Wisconsin and New York.

When all of this new construction is complete over the next year or so, Covington expects the need for 30 million pounds of milk a day to fill the new plants or expansions, which he estimates represent investments of at least $5 billion and are owned by private companies or groups of farmers or individual farms that are not cooperatives.

“This kind of money and growth is not being put out there unless there is confidence in getting a return on investment with cheese and whey product growth both domestically and internationally,” he pointed out.

New cheese plant construction, when completed over the next year or so will take in more than 30 billion pounds of milk a day, and they gain a lot of additional revenue from what they do with the whey that smaller traditional cheese plants don’t have the equipment to do.

These new plants making all of this cheese will also have a lot of whey.

He explained that small plants get about $1.00/cwt for the whey cream and have the liquid whey to do something with. Some plants might dry it and get $3 per cwt for the dry whey plus the $1 for the whey cream, so that’s $4/cwt.

“Small traditional cheese plants can’t afford the equipment to do what some of these new plants are doing. These new companies not only dry the whey, they fractionate it to make whey protein concentrates. They separate out the lactose for whey protein isolates,” Covington said, rattling off a few items on the expanding list for everything from snacks and beverages, to pharmaceuticals and cosmetics, to milk replacers, to counter-top items, ‘pizza cheese,’ artificial seafood, canned hams, and more.

“It’s just amazing, and it brings in more revenue. When we think about cheese, it’s more than just the cheese, it’s also the income from the whey that’s left over,” he said, adding that the CEO of a large cheese company once told him: “Sometimes I think the cheese is the byproduct.”

With this kind of investment, the new plants are going to be making big volumes and getting income from the whey.

“This puts a crimp on the small cheese plants that can’t do this, and they’re going to have to get it out of the cheese end,” Covington observed, suggesting some potential structural change on the cheese side of the dairy industry with significant domestic and international sales growth needed to stay a step ahead.

On the positive side of the fluid milk industry, in addition to growing whole milk sales, Covington highlighted new investments. He sees a future with more dominance by grocery stores, pointing out the two new Walmart plants going into Georgia and Texas, which will be the largest in the country, processing 50 to 55 loads of raw milk a day.

Other big investments in the fluid milk sector in the Northeast are ultrafiltration and ESL packaging, such as the new fairlife plant under construction in western New York, new ESL expansion at the former Hood plant owned by Maola, and aseptic shelf-stable milk packaging at Cayuga Milk Ingredients.

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Whole milk choice for schools takes center stage

Posted on February 7, 2025 by Agmoos

Whole Milk for Healthy Kids Act reintroduced in style!

‘Most nutritious drink known to humankind’ takes center stage at Ag Secretary confirmation hearing

This split-screen moment captures Sen. Roger Marshall, M.D. and Agriculture Secretary Nominee Brooke Rollins during their confirmation hearing exchange on bringing whole milk choice back to schools. Sen. Marshall always comes prepared with THE MILK! Livestream screen capture by Sherry Bunting

From grassroots volunteers to halls of Congress, ‘hat’s off to 97 Milk’

By Sherry Bunting, Farmshine, January. 31, 2025

WASHINGTON, D.C. – It was the high point of the four-hour confirmation hearing on Jan. 23rd for President Trump’s Ag Secretary nominee Brooke Rollins, when Senator Roger Marshall, MD (R-Kan.) poured himself a glass of whole milk in front of the television cameras, and said:

Ms. Rollins, welcome. I want to know if you agree with me that whole milk is the most nutritious drink known to humankind and belongs in our school lunches.”

He then promptly took a big swig of nature’s nutrition powerhouse that American children have been banned from consuming at school meals since 2012.

Yes, there was a ripple of good-natured laughter throughout the room at the absurdity of it all – the absurdity that this nutrition powerhouse has actually been banned for 13 years on school grounds to even be bought with one’s own money from midnight before the start of the school day to 30 minutes after the end of the school day, per the 12-years of King Vilsack that Secretary Perdue’s interruption even failed to overturn.

The new Ag Secretary nominee Rollins responded with a hand motion to her mother two rows back among the family, friends, colleagues, ag teacher, fellow former FFA state officers and current little league team she coaches in attendance for the confirmation hearing, as she replied with a hearty and all-too-knowing laugh:

“Senator, I don’t know that you have met my mom – yet. But this is all we had in our refrigerator growing up – not anything else – just whole milk. She is absolutely never going to let us forget this – the fact that this is coming up! But yes, this hits home to me very quickly,” said Rollins.

On the very same day, whole milk champion U.S. Representative Glenn ‘GT’ Thompson (R-Pa.) with prime cosponsor and pediatrician Rep. Kim Schrier (D-Wash.), along with Senator Marshall and prime cosponsoring Senators Peter Welch (D-Vt.), Dave McCormick (R-Pa.) and John Fetterman (D-Pa.) led the re-introduction of the bipartisan, bicameral Whole Milk for Healthy Kids Act of 2025, known as H.R. 649 in the House with 90 total cosponsors to-date, and S. 222 in the Senate with 12 total cosponsors to-date.

The bill in its fifth attempt will allow unflavored and flavored whole (3.25 to 3.5% fat) and reduced-fat (2%) milk to once again be offered in school cafeterias, which are currently only permitted to have fat-free and 1% milk available for growing children, much of which is shunned or thrown away.

“Federal policy, based on flawed, outdated science has kept whole milk out of school cafeterias for more than a decade,” said Rep. Thompson in a Jan. 23^rd press statement. “Milk provides 13 essential nutrients for growth and health, two key factors contributing to academic success. The Whole Milk for Healthy Kids Act of 2025 provides schools the flexibility they need to offer a variety of options, while supporting students and America’s hard-working dairy farmers.”

“As a pediatrician, I know how important a balanced and nutritious diet is for children’s health, well-being, and development,” added Rep. Schrier. “A healthy diet early in life leads to proper physical growth and improved academic performance and can set the foundation for lifelong healthy eating habits. Milk contains essential nutrients… This bill simply gives schools the option of providing the types of milk most kids prefer to drink.”

Sen. Marshall was blunt, saying, “(It) should never have been excluded from the National School Lunch Program. Now, 13 years after its removal, nearly 75% of children do not receive their recommended daily dairy intake. I believe in a healthier future for America, and by increasing kids’ access to whole milk in school cafeterias, we will help prevent diet-related diseases down the road, as well as encourage nutrient-rich diets for years to come.”

“Milk provides growing kids with key nutrients they need. Dairy is also an important part of Vermont’s culture and local economy, which is why our bipartisan bill to expand access to whole milk in our schools is a win for Vermont’s students and farmers,” said Sen. Welch.

Sen. McCormick said the bill “puts milk back in schools that growing kids actually want to drink. Pennsylvania’s dairy farmers supply this country (with it)… allowing schools to serve (it) in the lunchroom is just commonsense.

“Kids need it,” said Sen. Fetterman. “Let’s give them the option to enjoy whole milk again in schools – it’s good for them, they’ll actually drink it, and it supports our farmers. This bill is a simple solution that benefits everyone.”

Both National Milk Producers Federation (NMPF) and International Dairy Foods Association (IDFA) rushed to the forefront singing the bill’s praises and promptly issuing press releases, something that in past attempts took a little time.

As longtime milk market guru Calvin Covington noted at the R&J Dairy Consulting seminar in eastern Lancaster County Jan. 28th, kudos go to the grassroots efforts. He showed the increase in whole milk sales nationally, while other fluid milk categories have declined. This has somewhat stabilized the steep losses the entire fluid milk category has suffered most steeply in the past 14 years.

“My hat’s off to all of you and what you have done here in Pennsylvania, throughout the state and country, in promoting whole milk. I just wish other dairy farmers would be grassroots like you are and get involved,” said Covington. “Your work has paid off. Look at this graph. In 2013, whole milk sales were a little over 14 billion pounds. Last year (2024 with 11 months of data) I’m estimating 17.5 billion pounds. Whole milk is coming up, and everything else is going down.”

Covington dug into the graph (above) further to show that in 2019, the amount of whole milk sold was 16.9 billion pounds. “But look what happened in 2020, it jumped up to 17.4 and then back down to 16.62 in 2021. That was the pandemic. People were home. Schools were closed,” he said.

“When they were home, they drank good-tasting milk, but unfortunately when the schools opened back up, they had to go back to the other stuff. But my hat’s off to what you’ve done here. We’re selling more whole milk, and one thing people forget is that 100 pounds of Class I milk sales with higher fat content — last year it averaged 2.4 in this market compared to what it was 15 years ago when it averaged less than 2% — the more fat sold in Class I milk, the more income for you as dairy farmers. Class I butterfat is worth more than butterfat in the other markets, so my hat’s off to what you’re doing.”

(Author’s Note: Yes, Covington is speaking of the good work, the hard work, of 97 Milk volunteers who formed the non-profit in 2019 after dairy farmer Nelson Troutman’s painted bales began appearing. This good work is sustained by a handful of volunteers and donations. Just think what could be accomplished with more involvement. One of those volunteers is Jackie Behr of R&J, who puts her marketing skills to work for 97 Milk. She reminded farmers that donations are needed to keep the milk education movement going. An Amish Wedding Feast fundraiser is scheduled for Feb. 8 at Solanco Fairgrounds, with sponsorships still available. The next 97 Milk meeting open to all dairy farmers is March 25 at Durlach-Mt. Airy Fire Hall near Ephrata, Pennsylvania. Check out 97milk.com to learn more about the milk education movement, and hit the donate tab to find out how you can help.)

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House Ag Chair and new Ranking Member share bipartisan priorities at Farm Show listening session

Posted on January 24, 2025 by Agmoos

Whole milk, new farm bill top their bipartisan to-do list

By Sherry Bunting, Farmshine, Jan. 17, 2025

HARRISBURG, Pa. – Bipartisan priorities were evident — especially on getting whole milk back in schools and completing a new farm bill — during Rep. Glenn ‘GT’ Thompson’s annual listening session on opening day of the Pennsylvania Farm Show Jan. 4th in Harrisburg.

With a thin Republican House majority, Thompson, who represents the largely rural 15^th district of north central Pennsylvania, will continue as Chairman of the Ag Committee.

He introduced the more than 100 attendees to the Ag Committee’s new top Democrat, Ranking Member Angie Craig, who represents the mostly rural 2^nd district of southeast Minnesota.

They were joined by Ag Committee and Ag Appropriations Committee member, Rep. Chellie Pingree, representing the 1^st district of Maine, and by Pennsylvania Secretary of Agriculture Russell Redding.

Whole milk

“We got really close to getting this done,” said Thompson about his Whole Milk for Healthy Kids Act after Berks County dairy farmer Nelson Troutman with the Grassroots Pennsylvania Dairy Advisory Committee asked: What’s next for the bill in the new 2025-26 Congress?

“We have to start over, but there is a lot more support this time,” Thompson replied. He doesn’t see any obstacles on the House side after overwhelming bipartisan support in the 2023 floor vote.

He expects the bill to move quickly through the Education and Workforce Committee under its new Chairman Tim Walberg (R-Mich.), a whole milk bill cosponsor. Then Thompson will work with House leadership to get it on the calendar for a 2025 vote.

He said the Senate side also looks “very promising” as Sen. John Boozman (R-Ark), a supporter of the bill, replaces former Ag Committee Chair Debbie Stabenow (D-Mich.) who had blocked it.

Craig gave further assurance. She and the new Ag Committee Ranking Member on the Senate side, Amy Klobuchar (D-Minn.), are working together on this. “We do not see what we saw last time on the Democratic side to get this done for GT,” said Craig.

Both are Democrats from Minnesota who previously cosponsored the bill – Craig on the House side, Klobuchar on the Senate side.

Thompson credited the education and leadership of the Grassroots Pennsylvania Dairy Advisory Committee and 97 Milk in raising awareness and support. “The grassroots effort also helped improve the bill by suggesting language that makes sure the calories don’t count toward the fat in the school meal,” he said.

Pingree is also a big supporter of whole milk in schools. She was “amazed” to see all the Drink Whole Milk signs, banners, and painted bales while visiting her brother-in-law in Lancaster County, Pennsylvania.

“I don’t know too many states where you see something this interesting while you’re driving down the road. It’s pretty impressive. It has spread far and wide,” she noted.

Congresswoman Chellie Pingree (D-Maine) was “impressed” by the Drink Whole Milk signs along roadsides when she spent time in Lancaster County, Pennsylvania. That was music to the ears of Berks County dairy farmer Nelson Troutman with the Grassroots Pennsylvania Dairy Advisory Committee. His original painted round bales in December 2018 motivated the launch of the 97 Milk education movement in February 2019. It is run by volunteers and donations at 97milk.com

ESL milk

Troutman asked if the bill could address extended shelf life (ESL) milk in schools. He is concerned about taste and acceptance by students, saying “schools should only be allowed to serve ESL milk if that’s the only option available to them.”

His concern arises from the volume of new plant capacity coming online across the country for ESL and aseptic shelf-stable milk packaging, along with new Federal Milk Marketing Order formulas that will price Class I milk differently based on shelf life. This creates potential competitive issues, especially in Pennsylvania, for bottlers of conventionally pasteurized milk that tends to be more local vying for school contracts with ESL milk coming from potentially more distant locations.

Farm-to-School

State lawmakers and young people in attendance voiced further concerns about the quality of school meals and the practice of schools shipping-in prepackaged meals prepared out-of-state, leaving Pennsylvania agriculture out of the loop.

They requested incentives for local farm-to-school food programs. Frank Stoltzfus, a 9^th generation farmer from Lancaster County pointed to the PA Beef to PA Schools program as a successful example.

These discussions come under the jurisdiction of the House Education and Workforce Committee and its “long overdue overhaul,” said Thompson: “The Childhood Nutrition Reauthorization is where we reform and refine to update school meals. I’ll be encouraging Chairman Walberg that we do that reauthorization, and this (ESL question) is something we can certainly take a look at.”

Pingree noted “some farm bill funding also goes to school meals, and we can put more into resupplying kitchens for on-site meal prep and local procurement.”

Nutrition overhaul

The last time Congress did a Childhood Nutrition Reauthorization was in 2010, when it tied school meals more strictly to the Dietary Guidelines for Americans (DGAs).

“When it comes to nutrition, if kids won’t eat it, then it’s not nutritional, and we are seeing a lot of waste today,” Thompson observed.

On that score, he pointed to “good reforms” to the Dietary Guidelines process that will again be part of the markup of the farm bill to “take some of the food politics out of the process coming from the so-called ‘experts.’ We want science-based not agenda-based guidelines.”

Farm bill

Asked about a timeline for the new farm bill, Thompson was optimistic. New committees are still being populated, and new members will need some farm bill education.

“But I would love to see this farm bill go to committee markup in the first quarter of this year — that is my goal – and then see it move quickly to the floor,” he said in a Farmshine interview after the event. “We will continue to do listening sessions, but I want to move ahead. We’ve had great input from all across the country, but I do think it’s important that we keep listening and touching base.”

Both he and Craig shared concerns about nosediving grain prices and net farm income. They differed on what constitutes cuts vs. cost-control on the Supplemental Nutrition Assistance Program (SNAP) that makes up the bulk of the now over $1 trillion farm bill. They both want the Inflation Reduction Act (IRA) funds pulled into the conservation title and baseline, but they differ on removing the IRA’s climate mandates for these funds.

Thompson warned about competition from conservatives who are interested in using these funds as ‘pay-fors’ on tax policy, which he said Ag Committee Republicans would oppose. “I want these IRA funds in this farm bill,” he said.

Craig said the IRA funds best practices like carbon sequestration, and Pingree said she likes the focus on resilience for healthy soils. They pointed to carbon markets that see the value and lauded Sec. Vilsack’s use of $3 billion in CCC funds for pilot projects that will “help give us better metrics.”

While there is general agreement that most practices on farms improve the planet, the question is – how do the things farmers already do get monetized?

“They are not getting enough credit for their ecosystem services — carbon sequestration, air quality, water quality, filtration of rain. Farmers improve our environment just by farming,” said former State Senator Mike Brubaker. “Is there some way for them to get paid?”

SUSTAINS Act

Thompson said the farm bill does not address this specifically, but legislation passed in 2022 includes the SUSTAINS Act, which he described as “providing a framework for private industry to be involved.”

Corporations and foundations can donate funds to USDA for conservation purposes, like improving technical assistance for more farmers to have access to popular programs like EQIP. He cited a “great return on investment” from Chesapeake Bay Foundation initiatives as an example.

But he pushed back on the Ag Secretary’s use of CCC funds for such purposes because administrations come and go, with their own changing priorities.

“Having certainty going forward is incredibly important,” he said. “Sec. Vilsack wanted to do things by regulation and his interpretation of how CCC funds could be used. He should have come to us (Congress), instead.”

Likewise, concerns were voiced about emerging land use policies at local, county, state and federal levels.

Renewable energy

Asked for their views on traditional and alternative energy, a bipartisan preference emerged for balancing affordable and renewable sources with science, technology and innovation as “pathways for solutions.”

“We need ‘all of the above’ because energy will be a mix for a very long time,” said Pingree. “But we have to stay in this (renewable) dialog.”

Thompson said the ultimate destination of the Farm Show butter sculpture — a digester on a Pennsylvania dairy farm — is a good example of renewable energy produced from cow manure and food waste.

Craig said biofuels through E15 standards are vital for corn and soybean farmers in her district of Minnesota, with new biobased aviation fuel standards an exciting opportunity that U.S. farmers should benefit from, not imported corn from Brazil.

“Our farmers have to be at the forefront of it, we have to get this right,” said Craig. “As Ranking Member, I’ve got to manage my caucus just like GT does as Chairman, to work together for the right solutions, which are probably somewhere in the middle.”

Food security

Questions were also raised about invasive species, animal health, and safeguarding the food supply — especially in regard to inspection of border crossings for invasive pests that threaten all types of agriculture and novel cross-species migration of highly pathogenic avian influenza (HPAI H5N1) in poultry and now dairy operations.

“We have to make sure we keep investing in our laboratories, inspections, and research,” said Thompson.

According to Redding, the Pennsylvania Diagnostic Laboratories System (PADLS) was born out of the poultry industry’s first difficult encounter with avian influenza back in the early 1980s. Today PADLS is instrumental as the state is one of the first to enter the mandatory national bulk milk testing strategy, and has established some protocols credited to the poultry industry.

He stressed the importance of cross-species engagement between Pennsylvania’s top two ag sectors of poultry and dairy, where biosecurity is essential.

“We’re at about 100% of milk representing our nearly 5000 dairy farms, and we’ve not found (H5N1) on the third cycle of testing now,” Redding reported. “The difficulty with a national strategy is finding a model that fits the diversity of all the states.”

Craig said HPAI is a big concern for her home state of Minnesota, which is No. 1 in turkey production and No. 7 in dairy.

They look forward to working with the new U.S. Secretary of Agriculture on what the national strategy looks like going forward “without overburdening the farmers.”

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Covington’s Southeast milk market outlook: Higher prices for 2025; higher-fat milk sales also put more money in milk checks

Posted on January 23, 2025 by Agmoos

Calvin Covington gave his dairy market outlook during the Georgia Dairy Conference in Savannah. Photo by Sherry Bunting

By Sherry Bunting, Farmshine, January 24, 2025

SAVANNAH, Ga. – Flat milk production volume, but with higher components, and a more unpredictable demand are factors new to the dairy industry that make price projections more difficult for the year ahead.

Calvin Covington has spent his life in milk marketing, now retired from managing Southeast Milk Inc., and before that working with cheese processors to see (and pay) the value of higher protein and fat when he was with the American Jersey Cattle Association earlier in his career.

Covington gave his dairy outlook for 2025, with emphasis on the Southeast markets during the Georgia Dairy Conference attended by over 400 in Savannah, Jan. 20^th.

“I was way low on my projections last year. 2024 ended up with prices higher than anticipated,” he said.

This year, he is projecting prices in the Southeast markets to rise by $1.20 per hundredweight as an average for 2025 vs. 2024 in the Appalachian region ($24.12), $1.40 in Florida ($25.90) and $1.13 in the Southeast Order ($24.60). Most of the increase will come from the skim side this year because the FMMO changes, which will be implemented in the second half of 2025, will pressure butterfat value.

Covington shared his price projections for Southeast milk markets for 2025.

Producers are making higher butterfat milk, averaging well over 4.0% across the three Southeast Orders at 4.06 in Appalachian, 3.92 in Florida, and 4.11 in the Southeast. This compares with 3.65% across the three Orders in 2010.

“Additionally, consumers are also drinking higher fat milk,” said Covington, calculating the average fat percentage of Class I sales in the three Southeast Orders rose from 1.95% in 2010 to 2.4% in 2024.

Covington calculated that fat percentage in milk sales showing the change in consumer preference for higher fat milk puts more money in producer milk checks.

“In 100 pounds of Class I milk in the Appalachian Order, for example, that 2.38% fat made the milk worth more money, $1.38 per cwt more,” he said, with a chart showing Southeast producers saw a $1.28 benefit; Florida $1.35.

“There has been a big change in consumer preference, and that has raised your Class I price,” he said.

He commended dairy producers for improving their components, which has also improved their milk price.

“You’ve done this through genetics and feeding and nutrition programs, and it’s not going to stop. We are moving quickly to Holsteins making milk like Holsteins and testing like Jerseys.”

Other good news heading into 2025 is dairy product inventories are in good shape, he said. Cheese stocks are down, powder is up just a small amount, dry whey inventory is way down and butter inventory is flat.

Dairy product demand is up, but Covington sees a bit of a challenge looking at demand on a total solids basis because “we are exporting more cheese and less powder.”

Looking ahead, he gave attendees a lot to think about on the changing structure and markets in the dairy industry.

Covington observed that 10% (140) of the 1408 dairy farms that were counted in the 2022 Census of Agriculture in the Southeast had 64% of the region’s milk sales.

Of that 140, there were 22 farms with 2500 cows or more, producing 32% of the region’s milk.

“This is happening all over the country,” said Covington. “We are getting more concentrated.”

This year the milk production advantage flipped back to Florida by slightly more than Georgia, but the two states together have reached 50% of Southeast milk sales. Covington thinks by 2030, “we will see 60% of the milk produced in the Southeast coming from Georgia and Florida.”

When asked what has led to Georgia’s rapid increase in production over the past few years, Covington said “Georgia dairy farmers want to expand and they have the ability to expand. They are progressively making more milk per cow and have the land mass and support.”

His “demand and supply” summary for the Southeast region shows 1160 dairy farms at the end of 2024, producing 8 billion pounds of milk with 32 regulated milk plants. The region had 8.3 billion pounds of Class I fluid milk disposition, and 0.9 billion pounds of Class II products processed.

Against those numbers, the amount of packaged fluid milk products sold in the Southeast was 10 billion pounds. “The Southeast is still a deficit area, and there is room for growth,” he said.

As for total U.S. milk production, Covington doesn’t see it rebounding any time soon. Cow numbers are moving lower and milk per cow is simply not making the year over year gains seen in the past.

“Milk production has been pretty constant for the last three years,” he said. “We have to go way back to see where that has happened before.”

But he also wanted producers to think differently about production, to realize that in making more components, their milk is generating more products. He calculates that today’s hundredweights of milk, nationwide, yield a half pound more cheese. That adds up.

“You as dairy farmers are doing this. By getting your components up, you are also improving sustainability over time. You are making more products from the same volume of milk,” Covington explained.

“Based on average component level changes, if a plant is making one million pounds of cheese a day, they now need 177 loads instead of 185 loads a day for that same output,” he said.

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Organizations react to USDA, HHS picks as Trump nominates Brooke Rollins to top Agriculture post

Posted on December 1, 2024 by Agmoos

Brooke Rollins, photo courtesy America First Policy Institute

Bringing whole milk choice back to schools could align with Rollins’ and Kennedy’s priorities

By Sherry Bunting, Farmshine, November 29, 2024

WASHINGTON, D.C. – President Elect Donald Trump has nominated Brooke Rollins of Fort Worth, Texas to be the 33rd U.S. Secretary of Agriculture. She would be the second woman to serve in the top USDA post, the first being Ann Veneman in 2001 under President George W. Bush.

Trump’s announcement Saturday, Nov. 23 brought ripples of surprise across ag media outlets after many had floated a long list of other names under consideration.

In the end, it came down to Rollins, a lawyer and trusted advisor who previously served on Trump’s 2016 Economic Advisory Council as well as Director of Domestic Policy Council and Assistant to the President for Strategic Initiatives in Trump’s first term.

Rollins has spent the past four years as founder and CEO of the America First Policy Institute (AFPI). Trump highlighted her commitment to American farmers, food self-sufficiency, and rural small-town restoration.

The AFPI has not had much to say on agriculture, specifically, but has advocated for a ban on China’s ownership of American farmland. Rollins also spoke out against any sort of carbon or methane tax in a 2018 Texas Public Policy Foundation broadcast.

“As our next Secretary of Agriculture, Brooke will spearhead the effort to protect American farmers who are truly the backbone of our country,” Trump stated.

Raised with a generational ranching background in the small town of Glen Rose, Texas, Rollins was involved in 4-H and FFA leadership and credits her high school ag teacher for “changing her life.”

She earned her B.S. in agriculture development at Texas A&M and spent her public policy career in nonprofit and governmental leadership at the state and federal levels.

She and her husband Mark have four teenage children, who avidly show cattle.

While searches for paper or interview trails on her agriculture policy positions come up mostly empty, what can be gleaned is that Rollins has the President-Elect’s ear and a penchant for analyzing issues with an ear to those affected, not just the ‘experts.’

In a post on X (formerly twitter), Rollins thanked Trump for “the opportunity to serve… It will be the honor of my life to fight for America’s farmers and our Nation’s agricultural communities. This is big stuff for a small-town ag girl from Glen Rose, Texas… Who’s ready to Make Agriculture Great Again?”

Ag and dairy organizations responded. Several took the opportunity to also weigh-in on Trump’s nomination of Robert F. Kennedy Jr. a week earlier for Secretary of Health and Human Services with the Make America Healthy Again agenda.

The two departments jointly issue the Dietary Guidelines for Americans (DGAs) every five years, which USDA uses to regulate meals (and milk) served at schools, daycares, and senior centers. A large chunk of USDA’s massive budget and staff administer and regulate nutrition programs.

The next cycle of DGAs is already in process with the two new USDA and HHS secretaries tasked with finalizing the 2025-30 DGAs by the end of next year that will set the rules for schools and other nutrition programs for years to come.

American Dairy Coalition CEO Laurie Fischer observed in a statement that the incoming secretaries will have the opportunity “to fix food nutrition policy, such as a long overdue reform of the Dietary Guidelines that govern school meals where children have been prohibited from choosing whole milk and 2% milk since 2010.”

Grassroots Pennsylvania Dairy Advisory Committee chairman Bernie Morrissey also expressed hope that Rollins and Kennedy, if confirmed by the Senate, will work together to bring the choice of whole milk back to schools.

“For far too long, America’s children have been deprived of the choice of delicious, nutrient-dense whole milk. USDA requires schools to only offer fat-free and 1% low-fat milk. Many children throw that milk away, so they are missing nature’s nutrition powerhouse. Now, more than ever, we need to offer the “good stuff,’” Morrissey stated, adding that “Rollins is a mother, and that helps. We have mothers on our committee and they really get it.”

He explained that his committee includes dairy farmers, allied industry representation, a recently retired internal medicine doctor, school nurse, school foodservice director, and former school board director who have worked on this issue over more than a decade. He wants the incoming secretaries to understand the problem so they can unwind the decades of worsening low-fat rules that pave the way for more ultra-processing leaving children with less nutrient-dense choices and unfavorable nutrition and health outcomes.

“We look forward to working with the next Administration on reforms that allow dairy farmers to market the whole milk they produce and allow children the opportunity to choose milk they will love,” Morrissey added. “Our friends at the 97 Milk organization are doing a wonderful job educating the public. Now, we just need real leaders willing to stand up and roll back the federal ban on whole milk in schools. We are eager to help Make America Healthy Again and Make Agriculture Great Again.”

The International Dairy Foods Association (IDFA) has conducted surveys showing the vast majority of parents want their kids to have the choice of whole milk at school.

In his response to the Rollins and Kennedy nominations, IDFA CEO Michael Dykes, DVM also highlighted the joint nutrition roles of USDA and HHS, citing the need to “enhance the diet quality of Americans, protect the integrity of food production and processing, and establish a regulatory environment that drives innovation and efficiency… to continue leading the world in the production of high-quality dairy nutrition.”

In a follow up interview with ADC, Fischer said dairy labeling integrity is another big issue for dairy farmers in the wheelhouse of both USDA and HHS. “We hope to see the restoration of labeling integrity in the dairy case when it comes to plant-based lookalikes that don’t even come close to real dairy’s nutrition. That includes the regulation and clear labeling of these novel bioengineered fake ‘dairy’ and ‘meat’ lab-created proteins.”

More broadly, she cited the need for real world application of sound farmer-led policy and innovation that meet the realities farmers face daily.

“ADC looks forward to working with the next Secretary on ways to reduce redundancies and wasteful spending to improve efficiency so more of the dollars intended to support farms get to the actual farmers. We are encouraged by Rollins’ history with the Office of American Innovation in Trump’s first term because our farmers are key innovators and lifelong stewards of natural resources,” she said.

As of Nov. 26, National Milk Producers Federation (NMPF) had not yet released a public statement to the media on the nominations of either Rollins or Kennedy, stating simply in a social media post on X: “Congratulations to Brooke Rollins on her nomination to become the next USDA Secretary. Dairy farmers are ready to hit the ground running in 2025!”

National Cattlemen’s Beef Association VP of government affairs, Ethan Lane touted Rollins’ “history of fighting for Main Street and Rural America. America’s cattle producers need a secretary of agriculture who will protect family farms and ranches, roll back crushing regulations, and stand up for rural values.”

American Farm Bureau president Zippy Duvall weighed in, noting the “good relationship” Rollins has with the Texas Farm Bureau: “We hope to build on that. We’re encouraged by her statement that she’d ‘fight for America’s farmers and our nation’s agricultural communities.’ Effective leadership at USDA is more important than ever as farmers and ranchers face a struggling agricultural economy.”

Trump’s cabinet nominations are now complete and require confirmation by the U.S. Senate.

Check out some other interesting perspectives on the next USDA Secretary, pending Senate confirmation.

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How these dairies manage with innovation, diversity

Posted on November 27, 2024 by Agmoos

By Sherry Bunting, Farmshine, November 15, 2024

HARRISBURG, Pa. – Innovation on the dairy farm isn’t just the big investments that come to mind, but a mix of changes and a mindset to improve. Three distinctly different Pennsylvania dairy farms were showcased in a producer panel during the 2024 Dairy Financial and Risk Management Conference hosted by the Center for Dairy Excellence recently.

The audience of mainly ag lenders and industry representatives along with some fellow dairy farmers, had the opportunity to see how producers think through the challenges, progress, and investments, and how they manage their risk in areas such as herd health, feed and nutrition, as well as adversities they can’t control like weather, markets, and labor.

Automation at Oakleigh

For Matt Brake of Oakleigh Farm, Mercersburg, the five-year plan was accelerated in a different direction after a barn fire in December of 2019 forced the family to ask the question whether they would even continue in dairy. No animals were lost, and the 1950s parlor was saved, but they had big decisions to make about the future without a facility.

“We did a lot of praying and had a lot of difficult conversations,” he recalls.

By July 2020, they were milking 120 registered Holsteins with two Lely robots, automated feeding, automated bedding, and retained their preference for a bedded pack barn rebuilt within the existing footprint.

“We really appreciate the cow comfort we get from a bedded pack, and the longevity, which is something we are really seeing now, more than ever,” Brake explains.

They didn’t know — at first – that they would go robotic, but they did know the Lely Vector feeding system would be used for feeding in place of buying a new tractor and mixer and firing it up twice a day.

“It’s amazing to see how all these different pieces of technology play together,” says Brake.

The curtains and fans are all automated and integrated. All data points for the herd are displayed on every single milking. The system ranks cows from zero to 100 on percentage chance of illness, and the automatic sorting for individual attention is based on things like activity, rumination, production, and intakes.

“Everything just plays together in real time, without guessing. We’re still involved as managers, but the data and automation are the tools we didn’t have before. We saw an increase in production, but farming is still farming,” Brake relates, giving examples of ration changes that had to be made with a forage quality issue, and how data systems helped with early detection.

Overall, the animals are doing better in this system, and they are treating fewer cows because they are getting to them earlier.

“It’s really true that an ounce of protection is better than a pound of cure. The quicker we can give those cows the attention, the less likely they are to really nosedive on us,” he says.

Brake sees how automation saves labor in some respects, but it’s more accurate to say that, “With automation, we are better utilizing our skills. We’re able to spend our time better with the cows or focusing on priorities – like chopping corn or getting the alfalfa harvested at the right time.

“We don’t have to stop those activities two times a day or worry about if we have enough help in the parlor, and do we trust that person to stand in the parlor. The robot might ‘call in sick’ temporarily here and there, but in general, compared with some of the employees we’ve had, it’s reliable.”

Moving from just the paper DHIA to incorporating this into the electronic records, changes how they manage culling to be more voluntary than involuntary.

“We can look at space and overcrowding and begin to evaluate cows not just on milk but how efficient they are in the robots looking at deviation from the average with rankings on everything from performance in the robot to reproductive performance and past treatments and other metrics,” he explains.

Better management of the culling decisions also gives them the ability to plan how many heifers to raise. “One of the things we are doing is using more beef semen and using the system to decide who to use it on,” he says.

Renovation at Mount Rock

For Alan Waybright, innovation was the focus when he purchased Mount Rock Dairy from the Mains five years ago near Newville.

A building project was in order to update the over 30-year-old milking systems. About a year ago, they began milking in a 50-stall rotary, which changed the milking time on 2.5 times a day with each milking in a double-12 taking 9 hours, to now milking 4 times a day with each milking taking 3 hours and 45 minutes.

Waybright has been expanding from the 650 cows and 150 bred heifers he brought to Mount Rock from his prior home farm involvement at Mason Dixon, to milking 940 cows today with a 92-pound average, 4.2F and 3.3P.

Automation features were part of the rotary to reduce labor, and the calf barns include the wet barn to get them started before grouping for automatic feeders where they receive four to five feedings a day, resulting in healthier, better growing calves.

With the automated pre- and post-dipper, Waybright says the milking procedure in the DeLaval 50-stall rotary is very consistent, requiring just two employees, the first to wipe and forestrip and the second to dry and attach.

“This is a labor savings, yes, but there have been other benefits for udder health too,” Waybright reports. “When we went from the double-12 where we were hand dipping to the sprayer, a 50-gallon drum used to last seven days, now it’s three days.”

One of the innovative things he has worked on is the use of manure solids for bedding while keeping somatic cell counts low. His system uses two screw-presses dropping manure into the drum, leaving about two days’ worth of bedding at the other end with moisture levels around 50%.

They bed stalls every day during the week to use the solids as they come right out of the separator drum, adding acidifying ag lime to control mastitis.

Diversity key at Slate Ridge

“For us the secret weapon is diversity,” says Ben Peckman of Slate Ridge Dairy, Thomasville. He and his wife and high-school aged children milk 150 cows and raise 100 heifers, also feeding out all bull calves as steers.

He says there’s not one multi-million-dollar investment here, just the things that altogether add up to make a large impact.

At the dairy, he looks for ways to streamline, like ovsynch for repro. “It’s the little pieces here and there, he says, mentioning the machine with a smart phone app he purchased to do daily dry matter analysis on feedstuffs before mixing.

“Instead of always looking at the past for those adjustments, I can go out and see what the DM is right now,” says Peckman.

He fills the small sampler with three samples to get an average. “I have feed charts on my phone, pop in that number, and it changes out what I put in the mixer to get the same DM pounds,” he explains.

With feed stored in drive over piles, this is even more important to get the accurate measures each day, according to Peckman, who sees how it changes daily, firsthand.

“On a rainy day, it goes up, and on a dry, hot day, it goes down,” he says. “When changes happen day to day, testing every two weeks is not enough. My spreadsheet smooths out the changes by using the average of the past three days. When we started doing this we saw better production and components.”

A robotic feed pusher is another feed technology that’s made a difference. “We see higher intakes, fresher feed, labor savings and the ability to do this when I’m not there,” Peckman relates.

Bankers asked what ‘calculus’ goes into making such investments. For Peckman, the answer was blunt. “It’s something that improves how my herd performs but the robotic pusher does something I’m not willing to do. I’m not getting out of bed at 2:30 a.m. to push up feed.”

Other barn updates include ventilation controls and ceiling fans above bed pack areas. It’s better for cow comfort but there’s also a cost savings. “We use half as much straw and bedding with the new fans drying the air.”

His wife’s mobile milk pasteurizer is another innovation. They always fed whole milk and had a few problems when they fed it unpasteurized.

With the mobile pasteurizer, it’s two-fold: “the milk is better, but also the temperature is much better. It keeps the milk warmer, and we have healthier, better growing calves.”

Peckman really enjoys the cropping side, farming 1100 acres of diversified crops to feed the cowherd and take advantage of other markets.

“Diversity is how I mitigate risk. It’s my key technology. Diversity can’t be bought, but it pays. It helps me combat weather, combat markets, and combat other adversities in general,” he says, adding that it’s “not rocket science,” just looking at things other farmers are doing and adapting.

He does use GPS guidance for his tractors for planting and spraying, which saves seed and inputs and work off field monitoring with yield maps.

In addition to traditional corn for grain and silage and alfalfa haylage, they grows high oleic soybeans at Slate Ridge Dairy. “We saw a drastic increase in butterfat percentage,” Peckman reports.

On his silage ground, small grains are grown — triticale, wheat, and barley. The barley he harvests after it gets the head, two weeks before it would be a grain harvest, as silage for feeding heifers.

One “big new innovation” he’s excited about is male sterile forage sorghum.

“It puts a head on without developing grain in the head,” Peckman explains. “This allows the plant to concentrate on putting energy into a plant that is a high sugar crop not a high starch crop. It’s very comparable to corn silage. I take a pound of corn silage out of the ration and put a pound of this stuff right in.”

He has replaced up to 40% of his corn silage with this particular sorghum silage and would like to get to 50% because “it’s a very economical feed to grow, the seed is cheap and inputs are less. It’s working well for me, but you have to have a way to harvest it as the BMR forage sorghums don’t ‘stand’ all the way to harvest.

“We started feeding this two years ago, and our components are up.”

Another newer crop in Peckman’s diversified portfolio is milo, or grain sorghum. He says it’s economical to grow and drought resistant, and they have a market for bird seed.

The wheat is grown as a cash crop but it has been fed too. The barley he harvests is a supplement for dry corn, depending on the year. He likes to grow these crops because they make good straw to bed the cows.

Peckman is a big believer in keeping his soil covered at all times, so some of the decisions and rotations are tweaked with weather and calendar. Over the past couple years, he has added a few acres of sunflowers to the crop rotations.

“We can double crop sunflowers after wheat, and there is a viable bird seed market for those,” he says.

“Mainly, they are beautiful, and I see people enjoying them. Nobody is paying me for that part of it, but it warms my heart to see neighbors stopping with the families, taking pictures and looking at my flowers. With everything going on in the world today, if I can see someone go out and smile a little, it’s worth it.”

There is NO basis for two Class I movers in FMMO recommended decision!

Posted on October 20, 2024 by Agmoos

AUTHOR’S NOTE: Who’s the wizard behind the curtain on USDA’s last-minute milk pricing surprise, the splitting of the Class I baby to favor ESL? Vilsack, of course, with a little help from his checkoff cronies at Midwest Dairy and DMI — masquerading as ‘dairy farmers.’

By Sherry Bunting

USDA’s recommended decision on Federal Milk Marketing Order Class I (fluid milk) formulas brought a big surprise getting very little attention. That surprise: “splitting the Class I baby” and adding what constitutes a “fifth Class” of milk — TWO Class I movers announced each month.

ZERO proposals to divide Class I into a two-mover system were aired at the national hearing. Even USDA’s analysis shows the two movers would differ by as much as $1 apart — or more — in any given month.

The hearing record is woefully inadequate, indeed completely void of testimony for a second Class I mover. No proposal. No evidence. No testimony. No analysis. No parameters. No definition.

What does this surprise two-mover decision mean?

Fresh, conventionally processed (HTST) milk would go back to being priced by the prior method, using the higher of the Class III or IV advance pricing factors to determine the Class I skim milk base price portion of the mover.

On the other hand, milk used to make extended shelf life (ESL) fluid milk products, defined only as “good for 60 days or more,” would continue to be priced using the average of these two pricing factors, plus-or-minus a rolling adjuster of the difference between the higher-of and average-of for 24 months, with a 12-month lag.

Confused yet?

The industry is calling this surprise two-mover twist ‘innovative’ and ‘creative’, even ‘brilliant.’ But let’s hold the horses a moment.

With two movers, fluid milk costs could be different for plants in the same location based on shelf life. Could processors change the label to move between the movers and pay whichever mover was lower? Who knows? There is no clear definition for the new class, and the parameters to qualify are non-existent.

ESL processors will know the rolling adjuster 12 months in advance, due to the “lag.” They will know the two advance-priced movers a month in advance. They will have it charted in an algorithm no doubt, and make decisions accordingly.

Dairy farmers, on the other hand, will find out how their milk was used and priced two weeks after all their milk for the month was trucked off the farm. If the two-price Class I system becomes law, dairy producers’ milk checks will be even less transparent than they are now!

Not only does the USDA hearing record and decision fail to clearly define ESL, the industry doesn’t even have an exact and generally-accepted definition or standard for ESL.

ESL is both a loose and specific term.

Generally speaking, ESL is a term covering a broad range of products — ranging from UHT (ultra high temperature) or ultra pasteurization, aseptic packaging, to the inclusion of a process that combines microfiltration, skim separation, and indirect heating (in stages). These processes yield what is more specifically referred to as ESL fresh milk with a longer shelf life in refrigeration, but is not shelf-stable.

What’s at the root here?

Dairy checkoff personnel have openly identified ESL — especially shelf stable aseptically packaged milk — as its “new milk beverage platform.” Dairy farmers’ promotion funds are being used to research and promote ESL milk, as well as studying and showing how consumers can be “taught” to accept it.

For the past few years, the four research centers supported by the checkoff have been drilling into milk’s elements to sift, sort, and test different combinations to reinvent milk as new beverages.

In 2023, North Carolina State researcher Dr. MaryAnne Drake —speaking at the 2023 Georgia Dairy Conference — talked about this “new milk beverage platform. We are after a shelf-stable milk that tastes great and meets our consumer’s sensory needs and our industry’s sustainability needs,” she said.

Bingo. Dairy checkoff funds for ESL are being driven by the net-zero sustainability targets. And now USDA’s federal milk order changes are proposing to lower dairy farmers’ Class I income and/or competitively favor, and in a way subsidize, ESL processors over fresh HTST fluid milk processors. Follow the money.

Dr. Michael Dykes of IDFA, at the Georgia Dairy Conference in January 2024, told dairy producers that “this is the direction we (processors) are moving… to get to some economies of scale and bring margin back to the business.” He said the planned new fluid milk processing capacity investments are largely ultra-filtered, aseptic, and ESL — 10 of the 11 new fluid plants on the IDFA map he displayed are ESL. Some will also make ultrafiltered milk and plant-based beverages too.

The linchpin to regional dairy systems and markets for milk from farms that fit USDA’s description of small businesses is the processing of fresh, conventionally pasteurized (HTST) fluid milk.

Meanwhile, dairy checkoff overseers, in cahoots with processors, are making big bets that consumers will embrace the obvious conversion underway to the consolidating shelf stable ESL milk, emboldened by the average-of pricing that has failed farmers miserably over the past five years and is now part of the proposed two-price Class I system mysteriously added to the USDA recommended decision when a two-price Class I system was never noticed as part of the hearing scope.

In the recommended decision, USDA notes that ESL currently represents 8 to 10% of total fluid milk sales but does not present the full picture of how the industry began aggressively converting to ESL since 2019 when Class I average-of was implemented. More of these accelerated investments will become operational in 2024-26.

Before we know it, the industry will have converted to ESL, and dairy farmers will once again experience disorderly marketing, depooling, and the basis risk of the mysterious average-of mover.

Dairy farmers have seen this movie before.

In 2018, the average-of method — which changed how the Class I base was calculated — was portrayed by National Milk and the IDFA as “revenue neutral.” But at the recent national milk order hearing, testimony revealed that farmers experienced Class I revenue losses totaling nearly $1.25 billion from May 2019 through July 2024… and other impacts.

Disorderly markets via the ‘average-of’ continue to result in losses and disrupt performance of risk management tools that fail to protect farmers against the intervals of extreme basis risk.

Proponents say the proposed rolling 36-to-13-month ESL adjuster on the second mover in USDA’s decision provides compensation to farmers for the difference between average-of and higher-of. However, that occurs gradually — over time — with a lagged interval. If tight milk supplies boost commodity prices and drive up all classes of milk, then dairy farmers’ incomes will at least partially lag years behind real-time markets!

ESL processors like Nestle and fairlife testified that the average-of method over the past five years allowed them to use Class III and IV hedges on the CME to offer flat 9- to-12-month pricing to wholesale customers and increase their sales. Nice to know the big corporations made money on that inequitable Class I pricing system.

Would a two-mover system ultimately reduce farmers’ access to milk markets in some regions and diminish the food security of those consumers? Watch the impact of a new, unregulated ESL plant now being built in Idaho!

Many legitimate questions lack answers

Milk is commonly prized as the freshest, least processed, most regionally local food at the supermarket. Will the USDA recommended decision accelerate consolidation and a reduction in fresh fluid milk availability for consumers?

Has USDA considered the purpose of the FMMO system is to promote orderly marketing and the adequate supply of fresh fluid milk? Will consumers accept the taste of the not-so-fresh ESL, or migrate faster to other beverages if fresh fluid milk is less available to them?

How will the two-mover system impact dairy farms located outside of the industry’s very specific identified growth centers?

Will this perpetuate the wide divergence between Classes III and IV that has been an issue since 2019, further punishing dairy farmers with disorderly marketing and opportunistic depooling?

Who knows? The hearing failed to define, examine, or obtain evidence on any such questions… or any other questions that the hearing process is meant to be open to because this decision falls outside of the hearing scope!

Vilsack strikes again?

This proposal — a price break favoring ESL milk — fits the climate and export goals set forth by Ag-Secretary-then-DMI-executive-then-Secretary-again, Tom Vilsack. The pathway to rapidly consolidate the dairy industry to meet those goals is to tilt the table against fresh fluid milk. This is something Vilsack already put a big dent in by removing whole milk from schools.

It’s like one well respected veterinarian in the industry observed recently in conversation: “Someone decided: Thou shalt drink low-fat milk and like it.”

That “someone” is apparently equally convinced that the industry shall move to ESL and aseptic milk processing… while using dairy farmers’ checkoff funds to figure out how to get consumers to like that too.

-30-

Ag Moos

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There is NO basis for two Class I movers in FMMO recommended decision!

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