Dairy Defined

Dairy prices that plunged, then skyrocketed, have settled – for a moment. But volatility should be expected as long as COVID-19 makes its way through the economy, said Peter Vitaliano, chief economist for NMPF.

Public comments on the Dietary Guidelines for Americans Committee’s scientific report may be submitted until Aug. 13. It’s a great time for dairy voices to be heard, said Miquela Hanselman, NMPF’s manager for regulatory affairs.

The Dairy Margin Coverage Program and with other federal risk management programs have served farmers well during the coronavirus crisis and will continue to offer effective aid, as long as farmers participate, House Agriculture Committee Chairman Collin Peterson said.

“Dairy now has, I think, the best safety net of any part of agriculture, especially for small dairy farmers,” said Peterson, a Democrat from Minnesota, in the podcast released today. “They, no doubt, have the best safety net that there is right now, if they utilize it.”

The U.S.-Mexico-Canada Agreement is in effect, boosting opportunities for dairy producers. But enforcement vigilance will be necessary to make sure the deal meets its potential, said Shawna Morris, vice president for trade at the National Milk Producers Federation and the U.S. Dairy Export Council.

Dairy prices have rebounded dramatically because farmers quickly adjusted their milk production and consumers boosted retail demand as government purchases kicked in to help offset lost food-service sales, said Peter Vitaliano, chief economist for the National Milk Producers Federation.

“That has resulted in a very, very rapid change in the market price outlook,” Vitaliano said in an NMPF podcast released today. “The markets currently are looking like there’s going to be a very strong rebound, and prices will get to a more normal level in the second half of this year,” he said.

Higher milk prices and effective federal policies – both encouraged by dairy’s unity in responding to the coronavirus crisis – are dramatically turning around dairy-farmer fortunes and presenting opportunities to build on positive lessons learned, according to James “Cricket” Jacquier, a member of the NMPF’s executive committee and chairman of the board for Agri-Mark.

Far-reaching dairy sustainability goals, including a pledge for net-zero emissions by 2050, go hand-in-hand with economic opportunity for dairy farmers, said Krysta Harden, executive vice president, global environmental strategy, for Dairy Management Inc. and Innovation Center for U.S. Dairy.

This week farmers received welcome relief from the Trump Administration through its Coronavirus Food Assistance Program, for which farmers can sign up starting May 26 – but that may not be Washington’s last work on farm aid this year. More assistance may be on the way, even though the details and timing remain unclear, according to Paul Bleiberg, vice president for government relations at the National Milk Producers Federation.

The economic and health risks of coronavirus have many dairy producers on edge – but staying focused on the task at hand and remembering the value that dairy farming provides can help carry farmers through, says Emily Yeiser-Stepp, vice president at the National Milk Producers Federation and director of National Dairy Farmers Assuring Responsible Management, a.k.a. the FARM Program.

Lags in timing for milk payments have kept many dairy farmers from feeling the worst effects of the coronavirus crisis’s effects on their revenues – but that will soon change, said Leroy Plagerman, a dairy farmer in Whatcom County, in the northwest corner of Washington. One of the biggest challenges dairies face is “just the challenge of the uncertainty, and not knowing how long this is going to last, and where we end up on the other side,” said Plagerman, who also is a director of the Northwest Dairy Association, a.k.a. Darigold, in an NMPF podcast.