2020 | October 9 GMP E Newsletter
Georgia Milk Producers Weekly Enews
WEBINAR Hosted by NC Dairy Producers Assn. to cover Dairy Margin Coverage Program and Dairy Revenue Protection Program

In partnership with GA Milk Producers, the NC Dairy Producers Association will host a webinar covering the 2021 DMC and DR-P risk management programs. This is free for dairy producers.

Start Making Plans to Join Us in Savannah this January!
Make plans to join us in-person this January for the 2021 GA Dairy Conference. Our staff is working hard to ensure that safety protocols are in place to minimize the spread of germs during our event. We look forward to seeing you in Savannah, Jan 18-20!! For hotel reservation information, visit our website: https://www.gadairyconference.com/accommodations
Dairy Margin Coverage Program Enrollment for 2021 Opens Next Week
From Southeast AgNet

The U.S. Department of Agriculture (USDA) will begin accepting applications for the Dairy Margin Coverage (DMC) program on Tuesday, October 13, 2020 for 2021 enrollment. 

“This year has been a market roller coaster for the dairy industry, and the Dairy Margin Coverage program is a valuable tool dairy producers can use to manage risk,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation, during a roundtable at a dairy in Chippewa Falls, Wisconsin. “We were excited to roll out this new and improved program through the 2018 Farm Bill, and if you haven’t enrolled in previous years, we highly encourage you to check it out.” 

Signup runs through Dec. 11, 2020. DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. DMC payments triggered for seven months in 2019 and three months so far in 2020. More than 23,000 operations enrolled in DMC in 2019, and more than 13,000 in 2020. Read more here>>>
The Fragile Recovery is About to be Tested
By Tanner EhmkeJeff JohnstonDan KowalskiWill SawyerTeri Viswanath and Kenneth Scott Zuckerberg

The coronavirus pandemic has now impacted all four quarters of 2020, and seemingly every aspect of life and business. The U.S. economy has been improving since late spring, but progress has slowed measurably, and with broad fiscal relief now off the table at least in the near-term, the economy will likely end the year in a fizzle.

Rural America is experiencing a dichotomy of improving industry fundamentals and a surge of COVID cases. Rural communities are now the source of a disproportionate number of new cases, just as we are all beginning to spend much more time indoors. A historic number of hurricanes, devastating fires – nothing about 2020 has been easy. But as always, essential rural industries are finding new ways to survive and in some cases, thrive. Read report here>>>
October Dixie Dairy Report
Calvin Covington

In this issue:
-Dairy product prices.
-Milk production
-Challenging month for Class I utilization.
-Blend prices
-Consumers continue to “eat” more and “drink” fewer dairy products
USDA Releases Payment Data for CFAP2
By Veronica Nigh and Michael Nepveux, American Farm Bureau Federation

USDA today provided the first peek into how payments are shaking out under the Coronavirus Food Assistance Program, or CFAP2. Late last month the administration announced details of the $14-billion-dollar program that will provide direct payments to farmers and ranchers to partially offset COVID-19-related losses. Sign-up for CFAP2 began on Sept. 21 and ends Dec. 11; producers can sign up through USDA’s Farm Service Agency county offices. CFAP2 payments will be broken into three categories: price trigger commodities, flat-rate commodities and sales commodities. Today we get to examine the first few weeks of payments, which, according to USDA data, total nearly $2 billion as of Oct. 6. Read report here>>>
GDYF Apparel Store Open Until Nov. 8th

Check out our Apparel Store!! We love the new logo and the products!!

Eliminating Lactose Improves Dairy’s Position in the “Foods for Health” Movement
By Donna Berry, Berry on Dairy Blog

More than ever, foods need to do more than satisfy appetites. They need to offer legitimate health benefits, according to a new report from Lux Research. 
Dairy foods can do that!

“Whether helping a consumer’s athletic intentions, cognitive performance or another aspect of health maintenance, foods and beverages are more frequently pushing beyond just claiming convenience, enjoyment and satiety,” according to the report. “The beginnings of this concept come from initial efforts to reduce the prevalence of ‘bad’ ingredients in foods and beverages, and as the bar has been raised on the relative healthfulness of all products, developers seeking to stand out from the crowd have turned to not just less ‘bad’ but more ‘good’ in their products. Many are looking to foods as part of their health in an active way, creating an opportunity for food companies to evolve into health companies and vice versa.”

Milk inherently has the “good” and is also the perfect canvas for the addition of even more “good.” For some consumers, the only thing holding them back from consuming dairy foods is the lactose. The solution is to eliminate it. Read more here>>>
From Progressive Dairy Editor Dave Natzke

North Carolina Grade A dairy fluid milk producers who suffered losses because of disruptions in the milk supply chain have until Oct. 12 to apply for assistance through the COVID-19 Dairy Aid Program 2020.

To qualify, fluid milk producers must be inspected by the North Carolina Department of Agriculture and Consumer Services (NCDA&CS) Food and Drug Protection Division and qualify for the Grade A dairy program.

Producers will be eligible based on the pounds of Class I fluid milk produced beginning in April. A total of $2 million will be available, with limits on the amount paid to producers. Email for more information. Read more here>>>
Impact of the Farm Bill Change to the
Class I Milk Price on Dairy Farm Income
John Newton, Ph.D., Chief Economist, American Farm Bureau Federation

For nearly two decades the price for Class I milk, i.e., milk used to produce beverage milk products, was based on the higher-of the advanced Class III and Class IV skim milk price. Class III milk is used to produce cheese and Class IV milk is used to produce nonfat dry milk powders. Advanced pricing allows fluid milk processors to know their milk procurement costs up to six weeks in advance and the higher-of element ensured fluid milk prices were always based on the highest-priced manufacturing class of milk (How Milk Is Priced in Federal Milk Marketing Orders: A Primer).

The 2018 farm bill eliminated the higher-of component of the Class I milk price formula and replaced it with a formula based on the simple average of the Class III and Class IV advanced prices plus 74 cents. The 74 cents was based on the historical difference between the Class III and IV skim prices to make dairy farmers and milk prices indifferent to this change over a long time horizon. However, anytime the spread between Class III and IV is wider than $1.48 per hundredweight, dairy farmers will end up with a lower Class I milk price than would have been the case under the higher-of. For perspective, from January 2000 to April 2019, the spread between the advanced Class III and Class IV price was larger than $1.48 nearly 40% of the time.

The new Class I milk price formula was effective May 2019 and remains in place unless modified by an amendment to the Federal Milk Marketing Order – either as an act of Congress or administratively through an FMMO hearing. Today’s article analyzes the two Class I milk price formulas and the multimillion-dollar impact the farm bill price change – coupled with COVID-19-related volatility in dairy markets – has had on dairy farmers supplying the Class I market. Read more here>>>
6 Megatrends Will Shape the Food Industry of 2050
By: Jennifer Shike, Dairy Herd Management

It’s not easy to be a successful food company. According to a recent research study, major food companies are experiencing a drop in sales and intensified competition from smaller players.

In “The Food Company of 2050,” Lux Research analyzed startup trends, social norms and corporate concerns in an effort to identify six megatrends that will shape the future of the food industry. 

Here is what they believe companies must do now to survive and thrive over the next 30 years, according to the study.

1.   Develop food for health. 
Food needs to satisfy a growing list of expectations beyond satiety and nutrition.

2.   Master the role of the microbiome.
From production methods to diagnostics, the report says mastering this realm may make or break food companies. Read more here>>>
GA Ag Labor Forum to be held virtually this November
This year might be different but we will still have the latest labor updates for growers, shippers, processors and other agricultural professionals.

Don't miss this opportunity to hear from industry experts as they help you comply with labor laws, all from the comfort and convenience of your home!

This five-part webinar series will be held 9:00 a.m. - 11:00 a.m. Eastern Time on the following dates:
  • Thursday, November 5
  • Tuesday, November 10
  • Thursday, November 12
  • Tuesday, November 17
  • Thursday, November 19

Cost: $95/participant includes access to all webinars and resources

Each webinar will be available for on-demand access and viewing for all registered attendees. Click here for more information>>>
Other Stories to Check Out This Week >>>
Upcoming Events >>>
GA Dairy Classifieds

UPDATED 10/2/20

For Sale: Feed bunks on wheels, 4 in stock for $1,600 each. Contact Reid Bros. Irrigation for more information at 229-924-2474 or 229-942-0035.

Will Raise Heifers for GA Dairy Farms: Hello we are located in Southern Illinois and have an abundance of pasture and cheap feed available looking to contract with a dairy to grow heifers for them, out location offers mild climate and we are just 558 miles from Montezuma Ga. Please contact 817-528-6645 very reasonable daily rates.

For Sale - Productive 360 Cow Holstein Herd For Sale, Parlor/Freestall/AI Sired/Lots of Young Cows/2X 70# 4%F SCC-160K More information at www.kreegerdairy.com or call Chad at 517-294-3484

For Sale- DeLaval 84 Vacuum Pump on Stand, Oil Reclaimer, 10 HP- 3 Phase Electric Motor. New Bearings, New Oil Seal, New Belts. $2000
For more Information Call Tony Strickland , 229-254-6871; deepsouthai@gmail.com

For sale - Please contact John Felder for more information at 803-682-3425:
  • Dairy Tech Bay Pasturizer - $4,000
  • Tidenberg Hydraulic Hoof Table (like new) - $5,000
  • Mench Sand Trailor - $14,000
  • Hall Stall Sand Leveler (new) - $1,000
  • Claas Silage Choppers - 960 1875 cutterhead hours, 4WD, 600 orbis, HD300 PU - $190,000
  • Fans Cool Aire
  • 18 54" $225.00
  • 20 48" $125.00
  • 20 35" 100.00
WANTED: Peter's Cattle Co. will buy any dairy, beef, and cross, bottle or weaned, bulls, heifers or free martins. Pick up weekly 7 days a week. Chris- 470-255-8515
Bull Calves WANTED:  Competitive pricing with 6 day a week pickup. Brandon Mason Cattle Company 912-632-4490

FOR SALE :  We have a continuous selection of fresh and springing heifers.   Call William at   (706) 768-2857  or visit our website at   crumpdairyreplacements.org  
Farmer to Farmer Support Program Available for SE dairy farmers
Farmers across the Southeast are experiencing uncertain times like never before. All aspects of agriculture have been hit by market losses due to COVID-19, but dairy has reached a level of uncertainty that many have never experienced.

As we navigate through these next few months, dairy producers across the Southeast have come together to introduce the "Farmer to Farmer Support Program." If you find that you need support or would like to talk to a fellow farmer or industry friend, they have several volunteers that are willing and able to help. Georgia Milk Producers has also put together a packet on the program that you can access by clicking here. 

For more information on the program, please reach out to Farrah Newberry at gamilkproducers@gmail.com