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Wisconsin Dairy Farmers Criticize Senator Tammy Baldwin, Praise Trump’s Support for the Industry

Why are Wisconsin dairy farmers criticizing Senator Tammy Baldwin’s policies and praising Trump’s support? Are Baldwin’s promises enough to win their votes?

Summary: As the tight Senate race in Wisconsin unfolds, Democratic Senator Tammy Baldwin’s appeals to dairy farmers are being scrutinized. Renowned Wisconsin dairy farmers Jim Jenks and David Trimner criticize Baldwin’s track record and campaign promises, arguing they fall short compared to former President Donald Trump’s management. Although Baldwin touts efforts like emergency mental health care funding, these farmers raise concerns about overregulation and inflation under Democratic policies. Suggesting that a Republican alternative may offer more stability for the dairy industry, Jenks and Trimner emphasize the importance of voter turnout among fellow Wisconsinites.

  • Wisconsin Senate race tightens with Democratic Senator Tammy Baldwin’s efforts to win over dairy farmers under scrutiny.
  • Dairy farmers Jim Jenks and David Trimner are critical of Baldwin’s policies, highlighting overregulation and inflation concerns.
  • These farmers argue that former President Donald Trump provided better support to the dairy industry during his tenure.
  • Jenks and Trimner emphasize voter turnout’s importance in electing a candidate who supports the dairy industry.
Wisconsin dairy, America's Dairyland, Senate race, Tammy Baldwin, Eric Hovde, dairy farming industry, economic influence, dairy farms, employment, local economies, grandiose promises, emergency mental health funding, genuine challenges, overregulation, inflation, President Trump, Jenks Jerseys Dairy Farm, unappealing policies, emergency mental health care funding, Marsha Blackburn, Miltrim Farms, Wisconsin residents, vote, dairy business, unique issues.
U.S. Sen. Tammy Baldwin, D-Wis.,(Marisa Wojcik /The Eau Claire Leader-Telegram via AP)

Wisconsin’s dairy sector, often called ‘America’s Dairyland,’ is critical as we approach a pivotal Senate campaign. The stakes for our state’s dairy farmers could not be higher. Many dairymen in Wisconsin are dissatisfied with Democratic Senator Tammy Baldwin, questioning her commitment to their livelihoods. In contrast, they commend former President Donald Trump for initiatives that provided crucial support during one of the industry’s most challenging periods. David Trimner, Co-owner of Miltrim Farms, articulates his concerns: “Everything she’s going to bring as a Democrat, voting for all of their programs. So, we discuss overregulation. Dairy farms are among the most heavily regulated sectors. With so much at risk, this Senate election is not just about politics; it’s about the immediate future of Wisconsin’s dairy industry and the men and women who sustain it.

Wisconsin Senate Race: Farmers Pinned in the Political Crossfire 

The Wisconsin Senate race is heating up, with Democratic incumbent Tammy Baldwin facing a tough reelection battle against Republican challenger Eric Hovde. Both candidates are fighting to support Wisconsin’s strong dairy farming industry, which has a significant economic influence on the state. The stakes are enormous; dairy farms are more than companies; they are the lifeblood of many Wisconsin communities, creating employment and supporting local economies.

Senator Baldwin recently attempted to attract dairy producers by making grandiose promises. During a LaborFest address in Milwaukee, she promised to have their “backs.” She emphasized her work to win emergency mental health funding. However, other farmers like Jim Jenks and David Trimner feel that Baldwin’s plans fail to address the dairy industry’s genuine, urgent challenges. They argue that overregulation and inflation under the present government affect their livelihoods, comparing Baldwin’s attitude with the assistance they received under President Trump.

Jim Jenks Calls Out Senator Baldwin’s ‘Coattail’ Strategy

Jim Jenks, the owner of Jenks Jerseys Dairy Farm, has expressed dissatisfaction with Senator Tammy Baldwin’s policies, calling them “extremely unappealing” to dairymen. During a “Fox & Friends First” program, Jenks questioned Baldwin’s well-known emergency mental health care funding bill, which she co-sponsored with Republican Marsha Blackburn. He remarked, “In 2020, she and Republican Marsha Blackburn provided some funding for emergency mental health care for dairy farmers.” I’m not personally aware of anybody who has profited from it. Still, she’s riding that coattail into the dairy farm community to attempt to get her support back.”

Jenks is especially suspicious of the usefulness of this money, claiming that it has had no discernible influence on farms like his. He views Baldwin’s ideas as efforts to gain political momentum rather than genuine solutions for the dairy industry. According to Jenks, this form of political maneuvering sharply contrasts the Trump administration’s assistance during the problematic outbreak.

Donald Trump did an incredible job toward the conclusion of COVID-19 by assisting dairymen in riding the ship sinking when dairy prices plummeted. “He and his administration brought in significant help,” Jenks said. He feels Baldwin’s current campaign attempts to persuade dairy farmers to abandon their support for Trump, which he regards as deceptive and unsuccessful.

David Trimner Warns of Overregulation and Inflation Under Baldwin’s Policies 

David Trimner, co-owner of Miltrim Farms and a committed Wisconsin dairyman, expressed severe reservations about Senator Tammy Baldwin’s ideas about overregulation and inflation. Trimner stressed that dairy farms operate in one of the most regulated businesses. That extra costly rule from Baldwin might limit the industry’s development. “My greatest fear is what she’ll bring as a Democrat, voting for all of their ideas. So, we discuss overregulation. “Dairy farms are one of the most heavily regulated industries,” he said.

Trimner also emphasized the negative consequences of inflation on dairy producers, which Baldwin’s measures have done nothing to address. Inflation, of course, has been a primary concern. And that’s been a significant burden for farmers,” he said, emphasizing the direct effect on consumer buying power. “When Americans are struggling, they are less likely to spend money on our goods. And it significantly affects farmers in America, particularly in Wisconsin,” he said.

Jenks and Trimner are encouraging their fellow Wisconsin residents to vote, stressing the significance of selecting a candidate who supports the dairy business and knows its unique issues. “When you look at Wisconsin, county by county, it’s exactly as you said: the majority of the state is red, with just a few counties being blue. So, we need to go out there and vote for the man who will support the Wisconsin dairy sector and make better choices for Wisconsin and the United States,” Trimmer added.

Contrasting Administrations: Trump vs. Biden – A Dairy Farmer’s Perspective

When comparing the Trump administration to the present one, dairy producers such as Jim Jenks and David Trimner see a dramatic difference. According to Jenks, dairy producers got “significant help” from Trump during the tumultuous moments of the COVID-19 epidemic. He said: “At the end of COVID, [Trump] did an amazing job helping dairymen ride the ship that was going badly as we had plummeting dairy prices.” Many farmers benefited directly from the emergency relief measures adopted at the time.

Conversely, the current government, led by Senator Tammy Baldwin, is seen as ineffective in addressing the unique issues that dairy producers confront. This view is fuelled by fears about overregulation and inflation, which Trimner links to Baldwin’s policies. “My biggest concern is the fact that everything she’s going to bring as a Democrat, in voting for all of their policies,” Trimner said, emphasizing the negative impact of such laws on dairy production, which is already heavily regulated. He said, “When the American people are struggling, they are less likely to buy our things. And it has a significant effect on American and Wisconsin farmers.

Statistics back up their claims: the present administration’s inflation rate increased by 2.5% in July, according to a barometer widely followed by the Federal Reserve [Bureau of Labor Statistics]. This rise has added financial hardship to dairy producers with thin profit margins. Many farmers believe that the present government is not fully supporting their needs, and they long for the days when Trump’s policies were in effect.

The Bottom Line

In summary, Wisconsin dairy producers Jim Jenks and David Trimner have questioned Democratic Senator Tammy Baldwin’s policies and support for the business. They contend that her strategy has been mainly ineffective, drawing negative parallels with previous President Donald Trump’s policies, which they claim considerably benefitted dairy producers during turbulent times. Concerns about Baldwin’s possible overregulation and the effect on inflation heighten their pessimism.

The message is clear: voting for Senator Baldwin may maintain policies that do not benefit Wisconsin dairy producers. When weighing your alternatives, consider this: Can Wisconsin’s dairy business afford more of the same, or is it time for a shift that values genuine support and realistic solutions?

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From Battlefields to Barnyards: How War Veterans are Transitioning to Dairy Farming

Discover how war veterans are transforming dairy farming. Can their battlefield skills bring innovation and resilience to barnyards? Explore their unique journey.

Transitioning from military to civilian life is challenging for many veterans, as it demands emotional adjustment and new skills in a different environment. Dairy farming is a promising and formidable option among the career paths available. Nearly 10% of new dairy farmers in the United States are war veterans.  Veterans bring resilience and reinvention to dairy farming, applying military discipline to a new, demanding field. We’ll look at these veterans’ challenges and triumphs and share expert insights on this growing trend. From the therapeutic benefits to economic opportunities, their stories offer a compelling narrative of adaptation and success. Join us as we explore how these unique ‘vets’ thrive in a field that demands hard work, commitment, and resilience.

Veterans in Dairy Farming: Stories of Perseverance, Dedication, and Transformation

One compelling success narrative is that of Adam Jackanicz, a veterinarian and milk quality supervisor at Alliance Dairies in Trenton, Florida, who also serves as the Public Health Officer for the 932nd Medical Squadron in the U.S. Air Force Reserve. 

Initially told he could not pursue aviation due to poor eyesight, Jackanicz enlisted in the Air Force during veterinary school, a decision he wishes he had made sooner. “My regret is not signing up sooner,” he confides. 

Overseeing the health and well-being of 10,000 cows, Adam finds that the Air Force values of integrity and excellence are indispensable in dairy farming. His military heritage is profound, with a family history rich in service and his wife offering pivotal support during the COVID-19 pandemic. Adam reenlisted immediately after 9/11, transitioning from an enlisted role to an officer’s commission, serving across various states until 2009, and rejoining the ranks in 2020. 

Kyle Hayes, another distinguished war veteran, is a first-generation dairy farmer in northeast Texas who served in the Navy from 1971 to 1975. For Kyle, boot camp was a transformative experience, reminiscent of a scene from Forrest Gump. 

Beginning his agricultural journey with beef cattle, Kyle transitioned to dairy farming over thirty years ago. He takes immense pride in his son, Kyle Jr., who plays a crucial role on the farm. To Kyle, military service and dairy farming are synonymous with hard work and sacrifice, instilling a profound sense of purpose. 

Finally, Nathan Roth, a second-generation dairy farmer in Mountain Grove, Missouri, tends to 250 cows and farms 1,600 acres alongside his children. After high school, he joined the Navy and served a year in Vietnam. 

Nathan’s return home was an emotional transition. Still, he remains grateful for the G.I. Bill, which enabled him to obtain an accounting degree. Dairy farming is Nathan’s true vocation, perfectly blending with the discipline instilled by his military training. He takes pride in his dual identity as a Vietnam veteran and a dedicated dairy farmer. 

These stories exemplify veterans’ significant impact on agriculture, shedding light on their remarkable achievements and the obstacles they have overcome. Their contributions to the dairy farming industry invigorate local economies and cultivate a sense of purpose and community, demonstrating that the skills honed on the battlefield can yield bountiful harvests in America’s heartlands.

From Combat Boots to Barn Boots: Navigating the Transition from Military to Dairy Farming 

The transition from military to civilian life often challenges veterans with identity shifts, psychological stress, and the loss of a structured community. Issues like PTSD and depression can make it hard to settle into new careers. 

Yet, the skills from military service—operating under pressure, discipline, and resilience—are assets in dairy farming. Veterans excel in managing livestock, maintaining health standards, and handling agricultural unpredictability. Their strong work ethic and leadership can effectively manage farm teams and coordinate large-scale operations. 

Moreover, their logistical and strategic planning expertise is crucial for crop rotations, feed schedules, and overall farm management—the teamwork and camaraderie from their service foster strong, cooperative farm communities. 

Veterans’ resilience, discipline, and leadership ultimately lead to success and enhance the agricultural communities they integrate into.

Harnessing Military Expertise: How Veterans Excel in Dairy Farming 

Veterans bring unique skills from their military service that translate seamlessly into dairy farming. Foremost is leadership. In the military, individuals must make quick decisions and lead teams through challenges. On a dairy farm, this leadership is evident in managing farmworkers, coordinating operations, and ensuring tasks are completed efficiently. This includes overseeing milking, maintaining livestock health, and adhering to regulations. 

Discipline is another critical asset. The military demands a high level of personal discipline directly applicable to the rigorous routines of dairy farming. Veterans’ ability to stick to structured timelines ensures smooth operations, extending to essential record-keeping and maintenance. 

Problem-solving is invaluable. Military training instills the capacity to think critically and act swiftly in the face of challenges. This ability translates well to dairy farming, from handling animal health crises to machinery breakdowns. Veterans can innovate solutions, improving aspects like biosecurity and milk yield

Lastly, teamwork is crucial in both fields. Military operations rely on teamwork, as does dairy farming, which involves collaboration among various personnel. Veterans’ experience fosters a culture of teamwork and cooperation, enhancing productivity and creating a positive work environment. 

Leadership, discipline, problem-solving, and teamwork are essential for managing a dairy farm successfully. Veterans find a rewarding second calling in farming and significantly contribute to the agricultural sector.

Navigating the Green Transition: Support Systems Paving the Way for Veterans in Agriculture 

Transitioning from combat zones to pastoral fields is no small feat. Fortunately, numerous programs and organizations stand ready to support veterans in this journey. The Farmer Veteran Coalition (FVC) is a pivotal non-profit mobilizing veterans to feed America, offering training, mentorship, and financial assistance through the Fellowship Fund. 

The United States Department of Agriculture (USDA) supports these efforts with its Veterans in Agriculture and Farming Program, established under the 2014 Farm Bill. This program provides veterans with accessible microloans and conservation programs to promote sustainable farming practices. 

Community-centric programs like the Veteran Farmer at Turner Farm offer hands-on organic farming experience. Veterans like Rob Lewis have utilized this support to prepare for their farming ventures. Similarly, the Armed to Farm program combines sustainable agriculture training with technical assistance tailored for veterans. 

Local initiatives also play a crucial role. Hines’ apprenticeship at Avril-Bleh & Sons Meat Market highlights the value of community-level engagements in offering real-world experience. State-specific programs in Michigan and Kentucky further reflect the importance of agriculture in veterans’ reintegration into civilian life. 

Converging federal support, non-profit initiatives, and local programs creates a robust system that helps veterans thrive in agricultural settings. These resources provide essential skills, foster a sense of purpose, and build community for veterans in their post-military careers.

The Far-Reaching Impacts of Veterans in Dairy Farming: Economic and Social Dimensions 

Integrating veterans into the dairy farming industry offers profound economic and social benefits that resonate throughout local communities. Economically, veterans foster job creation and sustain local economies with a dependable influx of skilled labor. Their military training in logistics, management, and operational efficiency translates seamlessly to agricultural endeavors. 

Veteran farmers significantly enhance food security. Their disciplined practices ensure reliable production rates, providing a steady supply of high-quality dairy products. This consistency benefits consumers and strengthens the agricultural supply chain, reducing risks associated with market fluctuations and environmental challenges. 

Socially, veterans in dairy farming invigorate community development. Their involvement stimulates rural economies, attracts regional investment, and fosters community solidarity. Initiatives like the Farmers Veteran Coalition and veteran agriculture programs offer essential support, enabling veterans to excel and become community pillars. 

Inspiring narratives, such as Billy Webb’s transformation from a 20-year Navy veteran to a successful mushroom farmer, motivate other veterans and community members. These success stories highlight the potential for growth and adaptation within the veteran community, enriching rural areas’ social fabric and economic vitality. 

Integrating veterans into dairy farming aligns with sustainable agriculture, community resilience, and economic development goals. Their contributions bolster rural economies, enhance food security, and tighten social bonds, underscoring their invaluable role in local and national landscapes.

Overcoming Barriers: Navigating the Complex Path of Military to Dairy Farming Transition 

Transitioning from military service to dairy farming presents unique challenges. One significant barrier is access to land, often requiring substantial financial outlay that can be prohibitive for beginners. Veterans face disadvantages in securing farmland due to high costs and competitive markets

Innovative solutions like the Farmer Veteran Coalition and veteran-specific grant funding address this issue. The 2014 Farm Bill, for example, introduced provisions supporting veteran farmers through targeted grants and land acquisition assistance. 

Another challenge is access to capital for necessary equipment and infrastructure. Traditional financing demands substantial collateral and high interest rates, making it less accessible. Veteran-focused loan programs and micro-financing options offer favorable terms and lower entry barriers, helping bridge financial gaps

Technical knowledge is another hurdle. Military training instills discipline and resilience but not specialized dairy farming knowledge. Educational programs tailored to veterans are essential. Programs like the veteran farmer initiatives at Turner Farm provide hands-on training and mentorship. 

Social and emotional support is vital, too. Farming can be isolating, lacking the camaraderie found in military service. Peer mentorship programs and community farming initiatives foster and encourage belonging and build technical competence and emotional resilience.

The Future of Veterans in Dairy Farming: A Confluence of Innovation, Support, and Sustainable Growth

The future of veterans in dairy farming is brimming with potential, driven by innovation, financial backing, and a focus on sustainability. Advanced technology is a significant trend, with veterans’ military training equipping them to excel in using precision farming tools, automated systems, and data-driven herd management

Growth prospects also include expanding veteran-specific programs and funding. Successful initiatives like the Farmers Veteran Coalition and the 2014 Farm Bill provisions could inspire future policies, offering better training, increased grants, and more robust support networks. 

Sustainable practices will be pivotal. Veterans, known for their disciplined approach, can lead rotational grazing, organic farming, and waste management efforts, aligning with eco-conscious consumer demands

Veteran involvement in dairy farming could bring positive social and economic changes, boosting rural communities and local economies. Their leadership and resilience could foster innovation and efficiency, setting new standards for productivity and sustainability. 

In conclusion, veterans are poised to transform the dairy farming industry, leveraging their unique skills and experiences amid a landscape of innovation and sustainability.

The Bottom Line

Veterans bring resilience, discipline, and teamwork to dairy farming, making for a meaningful career transition and a significant agricultural contribution. Veterans like Hines and Webb exemplify successful shifts from military life to farming, embodying perseverance and dedication. The 2014 Farm Bill and veteran agriculture programs highlight the systemic support available. Military skills such as strategic planning and crisis management translate well into agriculture. Programs like the Farmer Veteran Coalition help veterans overcome transition barriers, showcasing a promising future where they can innovate and thrive in dairy farming. These efforts foster economic growth and enrich communities, aligning military precision with agricultural innovation. This synergy offers long-term benefits for both sectors, rejuvenating rural economies and promoting sustainable farming practices. We must provide policy backing, community involvement, and direct engagement in veteran-centric programs to support these veterans, ensuring they succeed and flourish in their new roles.

Key Takeaways: 

  • Military training equips veterans with discipline, adaptability, and leadership skills that are invaluable in dairy farming.
  • Personal stories of veterans reveal deep-seated perseverance, commitment, and a seamless transition into agricultural life.
  • Veterans bring innovative and efficient solutions to agricultural challenges, leveraging their military expertise.
  • Support systems, including government programs and nonprofit organizations, play a crucial role in facilitating veterans’ transition to farming.
  • The economic and social benefits of veterans in dairy farming extend to local communities and the broader agricultural landscape.
  • Despite numerous challenges, veterans successfully navigate the complex terrain of transitioning to dairy farming, showcasing their resilience.
  • The future of veterans in dairy farming is promising, driven by innovation, support, and a focus on sustainable practices.

Summary:

Dairy farming is a promising career path for veterans transitioning from military service to civilian life. Nearly 10% of new dairy farmers in the US are war veterans, bringing resilience and reinvention to the demanding field. Numerous programs and organizations support veterans in their transition, providing essential skills, fostering a sense of purpose, and building community. Integrating veterans into the dairy farming industry offers profound economic and social benefits, such as job creation, local economies, and community development. However, transitioning from military service presents unique challenges, such as access to land and technical knowledge. Innovative solutions like the Farmer Veteran Coalition and veteran-specific grant funding address these issues. The future of veterans in dairy farming is promising, driven by innovation, financial backing, and a focus on sustainability. Advanced technology, military training, and growth prospects include expanding veteran-specific programs and funding.

Learn more:

Senators Demand USDA Restore Fair Milk Pricing to Combat Farmer Losses

Senators urge USDA to restore fair milk pricing to combat farmer losses. Can reverting to the old formula save dairy farmers from economic hardship? Learn more.

If you’re a dairy farmer, you’ve likely experienced the harsh financial realities of recent changes in the milk pricing formula. Since 2018, many in the dairy industry have been grappling to stay afloat. Revenue has plummeted, casting a shadow of uncertainty over the future. The issue originates from the alteration of the ‘higher of ‘ Class I pricing formula for fluid milk, resulting in over $1.1 billion in lost revenue for Class I skim milk over the last five years. 

“Ensuring fair compensation and stabilizing milk prices are critical for the survival of our dairy farmers and their communities,” said Senator Kirsten Gillibrand.

Senator Gillibrand, Chair of the Senate Agriculture Subcommittee on Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security, has recognized the urgent situation. Leading a strong bipartisan effort with 13 other senators, she is urging the USDA to revert to the previous formula. This united push aims to repair the economic damage and stabilize the dairy market.

The Crucial Role of FMMO’s “Higher” Pricing Formula in Dairy Market Stability 

The Federal Milk Marketing Order (FMMO) system, created in 1937, aims to stabilize milk prices and ensure fair market conditions for dairy producers. This system sets minimum milk prices, categorized into four classes based on its use. Class I milk—for fluid consumption—traditionally commands the highest price due to its critical role in the consumer market. 

Previously, the “higher of” Class I pricing formula linked the price of Class I milk to the higher value between Class III (cheese) and Class IV (butter and powdered milk) prices. This approach aimed to ensure dairy farmers received fair compensation, reflecting market trends and minimizing economic volatility. 

However, the 2018 Farm Bill changed this formula. It introduced an averaging method, which calculates Class I prices based on the average of Class III and Class IV prices plus a fixed differential. This change aimed to simplify pricing and provide more predictability. Unfortunately, it led to significant revenue losses for dairy farmers, amounting to over $1.1 billion in lost Class I skim milk revenue over the past five years, causing widespread financial strain in the dairy farming community.

The Economic Ramifications of the Current Class I Pricing Formula 

The ongoing financial difficulties faced by dairy farmers have reached a critical point, prompting bipartisan action from the Senate. To emphasize the gravity of the issue, it’s essential to examine the direct impact of the altered Class I pricing formula on dairy farmers’ revenues over the past five years. 

YearRevenue Loss Due to Pricing Formula Change (in millions)
2018$250
2019$220
2020$200
2021$230
2022$200

Data Source: Senators’ Letter to USDA, outlining economic impacts on dairy farmers from 2018-2022 due to the Class I pricing formula change.

The current Class I pricing formula has had a significant and far-reaching economic impact on dairy farmers. Since the 2018 Farm Bill changed the formula, dairy producers have lost $1.1 billion in Class I skim milk revenue. This substantial financial loss has weakened many dairy operations, pushing some toward insolvency. The revised formula, which moves away from the ‘higher of ‘ pricing method, has introduced volatility that disrupts milk price stability. This instability hampers farmers’ budget planning and aggravates agricultural uncertainties. 

This pricing volatility affects the entire dairy supply chain, impacting feed suppliers, equipment manufacturers, and the rural economy. Farmers, who need stable pricing to manage costs and plans, face increased financial strain. As their revenue decreases, their ability to invest in farm improvements, employee wages, and community contributions diminishes. The instability caused by the current formula threatens the long-term viability of the American dairy industry, requiring urgent reform.

A Unified Appeal for Economic Justice in Dairy Farming

The senators’ letter to Secretary Tom Vilsack highlights the urgent need to revert to the “higher of” Class I pricing formula. They argue that the change made in the 2018 Farm Bill has caused a financial crisis, costing dairy farmers over $1.1 billion in lost revenue. The previous “higher” formula provided fair and predictable compensation, ensuring stability in the dairy sector. 

This bipartisan call to action, backed by influential senators like Kirsten Gillibrand (D-NY), Roger Marshall (R-KS), and Bob Casey (D-PA), underscores the shared concern for the future of dairy farming and the broader economic impacts. The senators are urging the USDA to reinstate the ‘higher mover in upcoming policy updates, aligning with the Federal Milk Marketing Order system’s goal of stable milk pricing and adequate supply. 

The Far-Reaching Economic Impact of Dairy Pricing Instability 

Beyond affecting dairy farmers directly, the flawed Class I pricing formula has widespread economic impacts. Rural areas, heavily reliant on agriculture, suffer as decreased farmer incomes mean less local spending and reduced investments in nearby businesses such as feed suppliers and equipment dealers. 

This financial strain disrupts the food supply chain, affecting dairy processors and retailers who face unpredictable pricing, leading to higher consumer costs and potential shortages of dairy products. This volatility can erode consumer trust in the food supply. 

Reinstating the ‘higher of’ mover is crucial for stabilizing the dairy market. This formula supports a predictable economic environment by offering fair compensation reflecting market conditions. It aligns with the Federal Milk Marketing Order’s goal to ensure a steady supply of fluid milk, contributing to a resilient agricultural sector supporting local economies despite market changes.

Senators’ Urgent Call to Action: A Pivotal Moment for Fair Milk Pricing

The senators’ urgent plea for immediate action from the USDA underscores the critical necessity to revert to the ‘higher class I pricing formula, which has been instrumental in ensuring fair compensation for dairy producers. This call for change is of utmost importance as the USDA embarks on its modernization efforts of the Federal Milk Marketing Order (FMMO) system. The upcoming decisions made by the USDA are not just regulatory updates; they are pivotal moves that must align with the fundamental goals of promoting stable milk pricing and guaranteeing an adequate supply of fluid milk. The financial well-being of dairy farmers and the broader economic stability hinge on these critical reforms.

Key Takeaways:

  • Bipartisan Effort: Led by Senator Kirsten Gillibrand and supported by 13 other senators, the call to restore the “higher of” Class I pricing formula aims to address revenue losses and stabilize the dairy market.
  • Financial Impact: Since the 2018 Farm Bill modification of the pricing formula, dairy farmers have incurred over $1.1 billion in lost Class I skim milk revenue.
  • Economic Ramifications: The unstable pricing formula affects not only dairy farmers but the wider agricultural supply chain, including feed suppliers and equipment manufacturers.
  • Call to Action: The senators’ letter to Secretary Tom Vilsack emphasizes the urgent need for reform to safeguard the long-term viability of the American dairy industry.
  • Alignment with FMMO Goals: Reinstating the “higher of” pricing formula aligns with the Federal Milk Marketing Order’s objective of ensuring a steady milk supply and stable market conditions.

Summary: The dairy industry has been grappling with financial difficulties since 2018, with over $1.1 billion in lost revenue for Class I skim milk over the past five years. The change in the ‘higher of’ Class I pricing formula for fluid milk, which linked the price of Class I milk to the higher value between Class III and Class IV prices, has led to significant revenue losses for dairy farmers. The revised formula has disrupted milk price stability, hampering farmers’ budget planning and aggravated agricultural uncertainties. This volatility affects the entire dairy supply chain, impacting feed suppliers, equipment manufacturers, and the rural economy. Farmers, who require stable pricing to manage costs and plans, face increased financial strain as their revenue decreases. The instability caused by the current formula threatens the long-term viability of the American dairy industry, requiring urgent reform. Senators’ letter to Secretary Tom Vilsack emphasizes the urgent need to revert to the “higher of” Class I pricing formula, arguing that the change in the 2018 Farm Bill has caused a financial crisis, costing dairy farmers over $1.1 billion in lost revenue. Reinstating the ‘higher of’ formula is crucial for stabilizing the dairy market and aligning with the Federal Milk Marketing Order’s goal to ensure a steady supply of fluid milk, contributing to a resilient agricultural sector supporting local economies despite market changes.

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