NADRO Annual Conference 2017 NMPF Update Clay Detlefsen, Esq. Senior Vice President, Regulatory and Environmental Affairs & Staff Counsel July 11, 2017 2107 Wilson Blvd., Suite 400, Arlington, VA 22201 703-243-6111 www.nmpf.org Connecting Cows, Cooperatives, Capitol Hill, & Consumers
NMPF Regulatory Team Clay Detlefsen, Esq. Dr. Jamie Jonker Dr. Beth Briczinski 2
Legislative Issues 3
Margin Protection Program (MPP): Not Quite a Safety Net NMPF Board consensus: MPP is the right program for the dairy industry s future But, changes are needed to make the program meaningful and workable for producers Supplemental Participation (above $4 margin) 2015 56% 2016 23% 2017 8% In 2015, a tight year, farmers paid in $73 million, but the program paid out only $1 million Key elements to improve: Restore Feed Adjuster to Original Proposal Lower Premium Rates Timing for sign-up should extend to year end 4
Policy Must be Right! Working with Congress and USDA to achieve our goal House and Senate hearing testimony NMPF s letter to Secretary Perdue requesting changes in the reporting of feed and milk prices Several members of Congress are already looking for ways to change/modify MPP Keep our eyes on the prize There is more than one way to accomplish the ultimate goal: a program that provides meaningful coverage at affordable premium rates 5
Immigration Reform: Trump Administration Actions Executive orders Building a wall Increased enforcement Sanctuary cities crackdown Travel ban Rules on implementation DHS issued memos to guide officials Targeted raids Local law enforcement deputized 6
Immigration Reform NMPF engaged in multi-front approach Short term: On-going engagement with Administration Allow H-2A status for dairy farms Monitoring enforcement actions Long term: Comprehensive congressional reform legislation 7
DAIRY PRIDE Act Legislation S. 130 (Baldwin/Risch) H. R. 778 (Welch/Duffy/Simpson) Outreach to FDA Encourage Support from Allies NADRO? State Regulatory Agencies? 8
The Current Marketplace is a Mess Potato milk Banana milk Hazelnut milk Green pea milk Flax milk Walnut milk Algae milk Barley milk Pecan milk Sesame milk Oat milk Soy milk Rice milk Pistachio milk Hemp milk Wheat milk Peanut milk Cashew milk Macadamia milk Almond milk Quinoa milk Sunflower milk Tiger nut milk 9
The Future is Here 10
School Milk Update Victory on 1% flavored milk Legislative approval Action by Sec. Perdue NMPF working closely with USDA on the implementation Timing of the decision could make it difficult to see results in the upcoming school year 11
Biogas & Nutrient Recovery Tax Credit NMPF working with bipartisan members of House and Senate to create an investment tax credit to help cover the up-front capital costs of nutrient recovery and biogas systems Tax reform legislative efforts provide an opportunity to enact this proposal Senate Finance leads: Sens. Sherrod Brown (D-OH) and Pat Roberts (R-KS) House Ways and Means leads: Reps. Ron Kind (D- WI) and Tom Reed (R-NY) Both bills have been introduced in Congress Senate bill is S. 988 and House bill # is TBD 12
Farm Regulatory Certainty Act In 2015, a federal court found several dairy farms out of compliance with the Resource Conservation Recovery Act (RCRA) Congress did not intend for manure and other fertilizers returned to the soil to be subject to RCRA Rep. Dan Newhouse (WA-4) has authored a bipartisan bill to reduce citizen lawsuits against farms under RCRA Legislative language has been updated, bill may move forward this fall 13
Regulatory Issues 14
NCIMS Tetracycline Pilot Program Pilot Program began July 1 NMPF as voice for industry, both as advocate and as educator Additional information: http://ncims.org/programs/appendix-n-pilot-program/ 15
Major FSMA Rules Still In Play Rule Final Rule Issuance Effective Date Preventive Controls for Human Food 9/17/15 1 to 3 years Foreign Supplier Verification 11/27/15 18 months Sanitary Food Transportation 4/16/16 1 year Food Defense or Intentional Adulteration 5/27/16 3 to 5 years High Risk Food Determination Unknown 16 16
Nutrition & Labeling Added Sugars on revised Nutrition Facts Panel Lactose in dairy ingredients is not an added sugar Compliance Date Postponed 17
Nutrition & Labeling NMPF protecting use of Natural for Natural Cheese NMPF filed comments opposing sodium reduction in processed dairy foods Changing nutrition landscape research on dairy fat, defining healthy 18
Biotechnology Rulemaking Process 30 questions out Proposal Fall 2017 Final June 2018 Issues: 19
Environmental Issues 20
CERCLA/EPCRA Will animal agriculture need to file 100,000 nonsensical manure air emission reports? 21
Regulatory Reform at EPA NMPF comments filed: WOTUS CERCLA/EPCRA SPCC RCRA TMDL Others 22
Water Quality Trading Update Pennsylvania Legislation with competitive bidding focus $50M annually for 10 years from existing programs Permittees absolved of TMDL mandates Maryland Failed to get $10M funding shifted Pursuing pilot projects to spur trading Program focused on population growth 23
NMPF Update Clay Detlefsen cdetlefsen@nmpf.org 2107 Wilson Blvd., Suite 400, Arlington, VA 22201 703-243-6111 www.nmpf.org Connecting Cows, Cooperatives, Capitol Hill, & Consumers