In our last E-News, I neglected to include the link for the 2022 Ag Census Summary our Friends at UGA created. UGA Ag Economists created summaries of the Georgia-specific data from the 2022 Ag Census, and you can view those summaries HERE.

In this Issue:

• Headlines
• DMC Enrollment Opens for 2024; January to Trigger Payment
• NMPF Dairy Market Report
• Farm Journal's Trust in Food Initiative to Fund Climate-Smart Commodities Grant for Producers
• Dueling Op-Eds on Class I Mover Changes
• GDA Offering CAFO and NMP Specialist Training & CE Credits
• GDA Turns 150
• PMO Turns 100
• Legislative Tracker
• Upcoming Events

Headlines

articles and press releases of interest this week

• Environmental Group Says Gov’t Funding Doesn’t Reduce Emissions
• FDA Allows New Claim That Yogurt May Reduce Diabetes Risk
• EPA to Form New Office for Agriculture and Rural Affairs
• New York State Sues Meatpacker JBS Over Environmental Claims
• Senator Stabenow Threatens to Block New Farm Bill this Year Over GOP Demands
• GA Dairy Farmers Teach NBA Superstars How to Milk A Cow by Hand
• After Period of Exuberance, Dairy Markets Run Into Resistance
• White House Shines Spotlight on Healthy School Milk Commitment
• Congress Unveils Much Anticipated Funding Bills Ahead of Shutdown

2024 DMC Enrollment is Now Open

USDA FSA recently announced that Dairy Margin Coverage for 2024 is open for enrollment. Eligible dairy producers have until April 29 to enroll in the program. Payments will be made retroactively for any missed payments while enrollment was delayed. USDA also announced late last week that the January all milk over feed margin was $8.48/cwt. This will trigger payments at the top three coverage levels under Tier 1. 

DMC enrollment was delayed from its usual window at the end of the calendar year due to the appropriations bill passed by Congress in November 2023. In that supplemental appropriations package, Congress extended all Farm Bill programs through September 30, 2024 and updated DMC’s production histories to use 2019 production data. This required USDA to amend some of its rules and regulations regarding the program and delay implementation. However, this change will allow producers with greater production since 2013 to be eligible for more coverage under the program.

Since the program’s first full year started in 2019, DMC has paid out at the $9.50 level 36 out of 60 months. According to the DMC Decision Tool, producers with 5 million lbs. of historic production with Tier 1 coverage at the $9.50 level would have received $133,030 in payments in 2023. Visit your local USDA Service Center by April 29 to enroll in Dairy Margin Coverage. 

January will register payment

Further Reading:

• Southeast AgNet: Enrollment Underway for 2024 Dairy Margin Coverage
• DMC Delivers its First Strong Payment of 2024



NMPF Dairy Market Report

The February issue of the Dairy Market Report from NMPF and DMI is out now. From the report:

Milk prices and the Dairy Margin Coverage Program margin both broke four-month streaks of improvement in December, with DMC for the year ending with its lowest calendar-year margin since the current dairy safety net system began nearly a decade ago. U.S. dairy exports, meanwhile, in 2023 saw the third-highest percentage of U.S. milk solids production exported ever for the full year – a noteworthy performance, though still a pace that moderated from its record-setting first quarter export percentage. Stocks of most major dairy products continued to fall in December, as milk and milk solids production growth continues below that of demand growth.

Dairy Market Report - February 2024



Climart-Smart Commodities Grant from Trust in Food Initiative and Farm Journal

The Farm Journal’s Trust in Food Initiative is taking applications for a $40 million grant program designed to test and evaluate conservation management practices in all segments of agriculture.

This program is available to producers across most commodity sectors in 31 states. To learn more about the Climate-Smart Commodities program and whether your farm qualifies, visit trustinfood.com/climate-smart-commodities/

Dueling Op-Eds on Class I Mover

Our dairy industry friends in D.C. have taken a break from agreeing on the Whole Milk for Healthy Kids Act to trade editorials on the Class I Mover. The International Dairy Foods Association (IDFA) and Milk Innovation Group (MIG) published an op-ed last week detailing the processors’ case for maintaining the foundation of the “average-of” Class I Mover. The National Milk Producers Federation (NMPF), representing the dairy cooperatives, published its own editorial on Monday outlining the necessity for a return to the “higher-of.”

A quick recap: Federal Milk Marketing Order reform in the late 90s established a new formula for Class I (fluid) milk by using the higher of the Class III (cheese) or Class IV (butter & powder) advanced skim milk price to set the base price for fluid milk. This became known as the “Class I Mover.” In 2018, Congress amended the FMMO statutes to change the Mover from the “higher-of” to a new formula which took the average of Class III and Class IV prices and added an adjustment of $0.74 per hundredweight. This $0.74 adjustment was meant to reflect the historical average (1999-2018) difference between the Class III and Class IV skim milk prices. Groups like NMPF joined IDFA in supporting this change because it was intended to be revenue neutral to the farmer and allow processors to better hedge against volatile milk prices. In the 4 years since the change was adopted. The new “average-of” formula has underperformed the “higher-of” to the tune of roughly $1.1 Billion in revenue for farmers. 

NMPF and producer groups (including Georgia Milk Producers) support returning to the “average-of” formula as soon as possible. This formula guarantees dairy farmers a fair price for fluid milk based on present market conditions. As NMPF’s Paul Blieberg writes in NMPF’s op-ed, the change in Class I Movers was intended to be revenue neutral towards the farmer. The surest way to guarantee that neutrality is by returning to the system that worked for almost 20 years.  

IDFA and other processor groups argue that the intent behind the “average-of” Mover was to aid fluid milk processors in managing risk through milk hedging programs. They claimed that the “average-of” would allow them to more effectively use risk management tools for Class III and Class IV milk to in turn protect their Class I milk costs. To make up for potential underperformance by an “average-of” formula, the processor groups presented proposals at the national FMMO hearing that would update the adjustment to the mover (currently $0.74) after a period of time. IDFA argues that farmers will receive the same amount of money over the long term.

In the short term, producer and co-op groups like NMPF point out that farmers could wait as long as 24 months to see any additional revenue through this new, dynamic “average-of.” Meanwhile, dairy farmers are still paying market prices for farm inputs such as labor, equipment, replacement heifers, feed and seed, and fuel. As Blieberg writes, “[proposals to amend the “average-of”] also provides little help to many family dairy producers who don’t have years to be made whole, a fact underscored forcefully by continued trends toward farm consolidation.”

Interestingly, the processors’ editorial ends with a call for dairy groups to wait for USDA to issue its proposed ruling based on the months-long FMMO hearing. Despite the fact that Congress altered the Class I Mover in 2018 outside of the federal order hearing process, they state that a similar fix in 2024 to restore the “higher-of” would “preempt the USDA experts and cause more division within our industry.” 

Georgia Milk Producers supports returning the “higher-of” Class I Mover as soon as possible and would welcome action by Congressional leaders to undo the 2018 Farm Bill revision to the federal orders. Five years is long enough to test out a new equation. $1.1 Billion in farmer losses is enough evidence to demonstrate it didn’t work.

Further Reading:

• Hoard’s Dairyman: The Class I Mover Needs to Move by NMPF’s Paul Bliberg
• Dairy Herd Management: Alternative Proposals to the Higher-Of Are a Win for Dairy by IDFA & MIG

Reminder: Animal Feeding Operator and Nutrient Management Specialist Training & CE Credits

Management Plan Specialist Certification Training in Athens, GA on March 20 and March 21. 

This training is limited to the first 25 registrants. You can register at this link. Deadline to sign up is THIS FRIDAY, MARCH 8.

Anyone looking for CE credits can attend one of GDA’s virtual CE opportunities showcasing many of the same topics presented during the AFO and NMP Specialist training. Email Courtney Wilson at courtney.wilson@agr.georgia.gov to RSVP to one of the Zoom sessions. The first zoom will also be THIS FRIDAY, MARCH 8.





GMP Classifieds

Georgia Dept. of Agriculture Turns 150

Governor Brian Kemp, Commissioner Tyler Harper, Speaker Jon Burns, and members of the Georgia General Assembly participated in a ceremony last week honoring the 150th Anniversary of the Georgia Department of Agriculture’s founding. 

Passed into law on February 28, 1874, the Georgia Department of Agriculture became the first state department of agriculture in the United States. The vote establishing the GDA as the newest state agency required Speaker Augustus Bacon to cast the tie-breaking vote in the House of Representatives.

From the Georgia Department of Agriculture’s 150th Anniversary webpage:

“In 1874, upon its founding, the Department assumed several key responsibilities. It produced a Handbook detailing Georgia's soil conditions and distributed seeds. It researched insects, informed the public about plant pests, and explored areas relevant to horticulturists. Additionally, it focused on diagnosing and reporting diseases affecting grains, fruits, and crops, analyzing fertilizers, and providing information on the dairy and wool industries and sheep raising to constituents.

Today, the Department serves as a regulatory agency, a marketing agency, and a consumer protection agency that impacts all 11 million Georgians every single day. Our oversight spans from the gas pump to the grocery store and almost everywhere in between, and the Department’s more than 550 dedicated professionals work every day to promote and protect Georgia’s #1 industry, ensure the safety and security of our state’s food supply, and serve the people of Georgia. Additionally, through The Farmers and Consumers Market Bulletin, established in 1917, the department informs and connects with the public, bridging the gap between agriculture and the broader community through online and print editions.”

Learn more about the history of the Georgia Department of Agriculture and view GDA’s 150 Years of Georgia Agriculture Photo Gallery HERE. 

Pictured (L-R): First Lady Marty Kemp, Governor Brian Kemp, Commissioner Tyler Harper, Mrs. Dale Burns, Speaker Jon Burns.

Pasteurized Milk Ordinance Turns 100

In keeping with the theme of anniversaries, the U.S. Food and Drug Administration is celebrating the 100th anniversary of the Pasteurized Milk Ordinance. According to the FDA, the Standard Milk Ordinance of 1924 served as the first national food safety program for dairy and significantly reduced the risk for the foodborne illness in dairy products. In 1950, the National Conference of Interstate Milk Shipments (NCIMS) held its first conference to bring the state food safety organizations into uniformity. In 1977, FDA and NCIMS signed a formal agreement creating the regulatory structure the dairy industry follows today. 

To learn more about the history of the Pasteurized Milk Ordinance and the dairy industry’s evolving food safety programs, visit fda.gov/food/milk

2024 Legislative Tracker

Last Thursday was Crossover Day at the Georgia State Capitol. Crossover day serves as the preliminary hurdle for bills and resolutions working their way through the legislative process. All bills and resolutions must receive a passing vote from the chamber in which they originate in order for the other chamber of the legislature to consider the bill. There are workarounds to this requirement, so to borrow from the film The Princess Bride, bills that fail to crossover are “mostly dead.” Several important bills relating to agriculture and natural resources advanced past the crossover hurdle last week. Governor Kemp also signed the amended FY 2024 budget last week to finalize the State’s fiscal priorities for the remainder of the fiscal year. 

The following are pieces of legislation of potential interest to GMP members and E-News readers:

• HB 848 – Reps. Taylor, Lumsden, Collins, Hitchens, and Dunahoo
• A bill to authorize the enforcement of excess vehicle weight violations through an automated vehicle weight detection system.
• Status - Failed to Crossover
• HB 908 – Reps. Ridley, J., Ridley, J., Jasperse, Fleming, and Persinger
• A bill to require food service establishments to disclose if food products contain cell-cultured meat and/or plant-based meat alternatives.
• Status – Failed to Crossover
• HB 922 – Reps. Vances, Tarvin, Lunsden, Collins, and Hitchens
• A bill to constitute the entrance upon another’s property without consent of the owner as an offense of criminal trespass.
• Status – Failed to Crossover
• HB 981 - Reps. Burchett, C. Cannon, Dickey, Meeks, Rhodes
• A bill to exempt agricultural structures from permitting fees by local or municipal governments.
• Status - Failed to Crossover
• SR 470 - Sens. Hickman, Goodman, Watson, Anderson, and Gooch
• A resolution creating the Senate Study Committee on the Preservation of Georgia’s Farmlands; and for other purposes.
• Status - Passed Senate 2/15/24
• HB 1015 - Reps. McDonald, Blackmon, Jones, Hong, Wade and others
• A bill to lower the state income tax rate for 2024 to 5.39% and reduce the income tax rate by 0.1% annually until the maximum tax rate is 4.99%.
• Status: House Passed on 2/8/24. Assigned to Senate Finance Committee
• SB 420 – Senators Anavitarte, Goodman, Beach, Cowsert, and Gooch
• A bill to prohibit certain foreign entities from purchasing agricultural land.
• Status: Passed Senate on 2/29/24
• SB 436 – Senators Watson, Goodman, Anderson, Walker, Ginn, and others
• A bill to give operators of farm vehicles the right of way on a state or local roadway when it is unsafe for the farm vehicle to pull off the far-right-hand side of the road.
• Status: Passed Senate on 2/16/24
• HB 1052 – Reps. Cannon, Dickey, Huddleston, McCollum, and Meeks
• A bill to allow corporations to qualify for CUVA if the land they are leasing is used for agriculture or timber purposes and if the corporation ownership includes at least one US citizen
• Status: Passed House on 2/29/24
• HB 1093 – Reps. Clark, Pirkle, Blackmon, Corbett, and Bonner
• A bill to prohibit certain foreign companies or individuals from purchasing agricultural land
• Status: Failed to Crossover
• HB 1099 – Reps. Huddleston, Burchett, Cannon, Camp, and Rhodes
• A bill to constitute a charge of criminal trespass against individuals who enter the land of another person that has been marked with purple paint marks on either trees or posts on said property.
• Status: Passed House on 2/29/24
• HB 1169 – Reps. Townsend, Smith, DeLoach, Vance, and Reeves
• A bill to allow the Environmental Protection Division to deny permit applications if the applicant has violated environmental laws or regulations
• Status: Failed to Crossover
• HB 1172 – Reps. Burchett, Rhodes, Leverett, Smith, and Williams
• A bill to limit the public’s right of navigable streams to only using water as highways and for hunting and fishing. The public is not permitted to trespass upon privately owned beds
• Status: Passed House on 2/27/24
• SB 429 - Sens. Dolezal, Gooch, Kennedy, Robertson, Anavitarte, and others
• A bill to provide for the submission of small business impact analyses on legislation, rules, and regulations for bills introduced during sessions of the General Assembly. 
• Status: Passed Senate on 2/26/2024
• HB 827 - Reps. Smith, Dickey, Pirkle, Leverett, Hagan, Huddleston
• A bill to increase the penalties for livestock theft
• Status: Passed House on 2/27/24 
• HB 1223 - Reps. Leverett, Petrea, Prince, Jackson, and Adesanya
• A bill to prohibit the application of soil amendments on a site under existing consent order with the Environmental Protection Division.
• Status: Pased House on 2/29/2024
• HB 1274 - Reps. Huddleston, Ridley, Dickey, Pirkle, Thomas, Cameron
• A bill updating the veterinary student loan forgiveness program to expand eligibility and increasing annual payments to participating veterinarians serving rural counties.
• Status: Passed House on 2/29/2024



Until Next Time,

Bryce Trotter