FOCUSING on the future - FarmFirst Dairy Cooperative
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ANNUAL REPORT 2018 FOCUSING on the future As president, I’m often asked for some inspiring words of encouragement. Let me tell you, after the past year we’ve had, let alone the past four years all together, I’m struggling. To find the words for this page, to find the words for my three sons working on the farm with me, for you as my fellow dairy farmer. It’s been downright challenging, and I won’t sugarcoat it. However, there are a few reasons to be positive about the future. First and foremost, milk prices are looking to improve a bit in the future, and I will gladly take any uptick in prices, even the slightest. Secondly, you are a member of FarmFirst Dairy Cooperative, an organization dedicated to serving its members and being your voice in Washington, D.C. This past year, not only with our work on the 2018 Farm Bill, but also the developments on trade and the new USMCA trade agreement, has been busy for FarmFirst in Washington, D.C. Add to the mix dairy labeling and requesting the FDA enforce their definition of dairy, and its easy to see why congres- sional leaders are familiar with our name. I want you to recognize FarmFirst Dairy Cooperative as being synonymous with serving your best interests in the dairy industry. Our board of directors, consisting of dairy farmers like you, that have the same concerns and questions that you do, are focused on improving the way dairies can do business and promoting dairy products in the marketplace, with the end goal to improve future opportunities for dairy farmers to operate their business. I might struggle to find the words, but I want you to know: you matter, as a member of this cooperative. Your voice is heard. Your voice counts. We are focused on the future because of you, our members. Thank you for being a part of FarmFirst Dairy Cooperative. We look forward to meeting with you at a Fall District Meeting near you. John Rettler President, FarmFirst Dairy Cooperative
NAVIGATING the dairy industry
“Navigating the Dairy Industry” the a field representative in Member milk quality issues. The lab continues
theme of last year’s annual meeting Services to replace Dennis Pank to provide accurate information
certainly held true. and Amanda Bedtke, who accepted a and outstanding, reliable, service
part-time position with the Min- to Family Dairies patrons, dairy
A lot of navigating was done by
nesota Holstein Association, so she processors and members.
members since my start as your
could spend more time with her
General Manager a week and half Spending much of my career
growing family. In July, Deanna
before that annual meeting. It’s no involved with dairy policy and
Malin started with Family Dairies
secret that low milk prices continued regulatory issues, I was in my
as a field representative. Joining
to make dairy farming difficult and element when it came to Farm Bill,
our other experienced and skilled
required members to make changes trade and tariff discussions. In early
field representatives, we didn’t miss
and decisions with their farming June, Steve Etka, our Washington
a beat and our staff continued to
operations. D.C. based lobbyist and I met with
provide outstanding service with legislators and several staff in their
Your cooperative did some milk quality issues, verifying milk Washington D.C. offices. During
navigating, made decisions and test results, doing tank calibrations the meetings I observed that the
adjusted to changes as well. and FARM evaluations. legislators and staff know Steve
During the year we wished Family Managing the penny and half per and that he is highly respected and
Dairies field representative Bill Bur- hundredweight checkoff dollars will effective in advocating our policy
ri and Member Services field repre- always be a priority. After a thorough positions.
sentative Dennis Pank well in their evaluation the decision was made With all the dairy related issues being
retirements and mourned the death to close the Manitowoc office and discussed, we ramped up our efforts
of long-time Family Dairies field have our Madison staff assume that to keep members informed and to
representative Norm Fleischman. work. While only finalized recently, let the media know our position on
In May, Betty Lund was hired as the consolidation will allow for the issues. We developed a detailed
greater efficiencies. strategic plan to enhance
Having a milk marketing communications and marketing
division and milk testing with members, the media, and the
lab makes FarmFirst Dairy public to make sure all are getting
Cooperative unique. information in a timely manner
We have a greater and in the format, they desire.
understanding what is As we start a new year, our board of
happening in today’s milk directors and staff will continue to
market because the milk assess our delivery of programs and
from our Family Dairies services and look for opportunities to
patrons in Wisconsin and generate additional revenue through
the Upper Peninsula of membership and other ventures, so
Michigan goes into fluid, we can continue to provide the policy
spoonable, cheese and and regulatory advocacy and the
ingredient products. Our services that you expect.
milk testing laborato-
ry, Fox Valley Quality Thank you for your membership!
Control Lab in Kaukau-
na, WI, allows us the
opportunity to stay on
top of the latest develops Jeff Lyon
in testing and work with General Manager
FarmFirst Dairy Cooperative
members experiencing
RAISING the voice of members
PASSING THE 2018 FARM BILL Passing a Farm Bill in 2018 has been a top legislative
priority for FarmFirst Dairy Cooperative. Over the past two years, FarmFirst has requested key
changes to better protect dairy farmers and their bottom line. The Margin Protection Program,
authorized by the 2014 Farm Bill, failed to perform to producer’s expectations. FarmFirst has
advocated for significant changes to the program to improve its effectiveness, such as reducing
premium levels, increasing coverage levels, adjusting the feed-cost formula and changing the two-month average
to individual month prices. In January of 2018, Congress passed legislation to make some these changes immediately,
without waiting for the 2018 Farm Bill.
The MPP changes put in place for 2018 have been helpful, but more improvements are needed. Much of the
year was spent advocating for a timely passage of the 2018 Farm Bill, and we remain hopeful that the bill will
be finalized and passed before December 31st. Fortunately, both the House and Senate versions of the Farm Bill
create a new Dairy Risk Management Program which includes many of FarmFirst’s suggestions, and while it’s
only a single tool in the risk management toolbox, FarmFirst represented Midwest dairy farmers concerns in the
suggested program reforms.
TRADE: PROTECTING DEFENDING DAIRY’S GOOD
RELATIONSHIPS, BUILDING NAME The past year has
NEW ONES Trade agreements yielded significant progress when
have been a hot topic throughout it comes to enforcing the
the past year, keeping it front and definition of dairy, including the
center for FarmFirst’s efforts in Washington, D.C. words ‘milk,’ ‘cheese,’ ‘butter,’ and ‘yogurt.’ FarmFirst has
Meeting with congressional leaders and trade voiced loud and clear our concerns about non-dairy
representatives, FarmFirst emphasized the value that products using dairy terms on their labels, which
exports provide to dairy farmers’ bottom line. This we believe misleads consumers about nutritional
year, dairy trade became front page news because of equivalency and taste experience. In recent months,
the Trump Administration’s efforts to use NAFTA FDA Commissioner Scott Gottlieb has indicated his
negotiations to pressure Canada to reform its dairy intention to increase enforcement of the FDAs rules
policies affecting trade. In addition, the retaliatory prohibiting use of dairy terms on non-dairy product
tariffs imposed by Mexico and China on U.S. dairy labels. The agency has invited comments from the
exports in response to U.S. tariffs on steel and public on this matter. FarmFirst has continued to
aluminum have negatively affected farmers’ milk share our comments with data and anecdotes,
checks. emphasizing the need for their agency’s enforcement
of these existing definitions of dairy.
FarmFirst is encouraged by the new trade agreement
with Mexico, Canada and the U.S., known as USMCA FarmFirst has engaged on this issue for the past few
(which will replace NAFTA), and is reivewing the years and has been a strong advocate of the Dairy
deails and eager to see the new trade agreement Pride Act, introduced in the U.S. House and Senate,
approved by Congress and get in motion in the to force FDA to enforce its dairy labeling rules. It is
coming year. The new agreement include some encouraging that the FDA is now making this a bigger
expanded market access and the ending of Canada’s priority. We will continue our efforts with FDA and
Class 7 pricing structure. Unfortunately, the Congress to insist on transparent and accurate labeling
Agreement does not address the Mexican retaliatory for non-dairy beverages and other products.
tariffs against U.S. dairy products, which is still being
negotiated on a separate track. Resolving this issue is a
top priority for FarmFirst.
SERVING dairy farmers
SHAPING the future
$127,750
Total amount of scholarship money awarded since 2013,
making a positive difference for 148 students pursuing
higher education. In 2018, $12,500 was awarded in
FarmFirst Dairy Cooperative scholarships to 16 students.
Dedicated to the next generation involved in dairy farming, the Young Cooperator
program held a handful of events over the past year, focused on networking and
educational events. The annual bowling event in Marshfield provided a great family-friendly
event, and events like the farm tours hosted in the spring allowed for innovative thinking
and event planning for the Young Cooperator program.
28 Farms
That’s how many member farms made a claim this past
year, utilizing the cooperative’s disaster benefit program.
The program pays for milk loss due to barn fires,
impassable roads and cows struck by lightning. During
members’ time of need, FarmFirst was able to provide
And more than $46,000 in payments. much-appreciated financial support.
GROWING from our grassroots
2018 brought three new faces to the cooperative’s Board of Directors. After eight months of being in their new
role, we asked them what they appreciate about serving on a cooperative board.
Steve Brock, Wayne Gajewski, Bob Dietzel,
District 1 District 4 District 6
“It has always been “I appreciate “It’s exciting to be
an honor to serve serving on a team part of a board
my farming of fellow dairy that is dedicated
community. farmers, who I feel to its members
Promoting the dairy industry has are diligent in their responsibilities and the industry. It’s been a great
always been a passion for me and my as board members and have the learning experience. Members
family. I have learned a lot, and have passion for representing our members voices are heard, and I truly believe
enjoyed the experience as well.” and the entire dairy industry.” we make a difference.”
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