MADISON, Wis. – As the May 1 deadline approaches, dozens of Wisconsin dairy farmers still are looking for a buyer for 800,000 thousand to 1 million pounds of milk a day.
A decision by Canada to shut down ultra-filtered milk trade from U.S. producers has left the farmers with a very short time to either find a new buyer for their milk or shut down their dairy operation.
President Donald Trump last week criticized Canada’s position as unfair.
Ultra-filtered milk is used to make cheese and butter.
Daniel Smith, administrator of agricultural development for the Wisconsin Department of Agriculture, Trade and Consumer Protection, says his agency has taken a number of actions to try to find a new market for the affected dairy farms.
"Working on possibilities of the federal government coming in and buying inventory so that we can free up more space through the processing network and make more dairy products and not contribute to the inventory," he states.
Because inventories are very high right now, it's difficult for processors to find room for an additional 800,000 to 1 million pounds of milk every day.
Mullins Cheese in Mosinee has taken on eight of the 75 dairy farms affected, and there are ongoing efforts to find other processors that can help pick up other farms.
Smith says people can help simply by buying more Wisconsin dairy products.
According to Smith, the Agriculture Department's Farm Center staff is working diligently to try to help. He says the situation facing the dairy farmers affected by the abrupt decision is critical, and they must either find a new processor to take their milk or sell their herd, which would mean losing their job and their livelihood. He says the state is working with the USDA to assist by purchasing cheese and butter in inventory and distributing it through nutritional-aid programs.
"So if we could move the inventory, maybe we could free up enough space in the processing sector, even if we put on extra shifts or whatever it would take to process this milk,” Smith states. “The simplest way to look at it: On May 1, we need a place for between 800,000 and 1 million pounds of milk a day to go."
Wisconsin is home to 9,236 dairy farms, more than any other state, and 96 percent of those farms are family owned.
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The chair of the Federal Trade Commission will be in rural Iowa this weekend to hear from farmers and other residents about the proposed sale of Iowa Fertilizer to Koch Industries.
The sale is pending FTC approval. Iowa spent $500 million to build an Iowa Fertilizer factory in Weverly to create competition in an already consolidated industry.
Aaron Lehman, president of the Iowa Farmers Union, said he plans to tell FTC Chair Linda Khan a sale to Koch Industries would backtrack on any competitive progress the state has made.
"Our concern is that an industry that already lacks competition and has all sorts of monopoly problems would only get worse if this sale is allowed to go through," Lehman explained.
Koch and other corporate ag conglomerates have said consolidating allows them to provide better products to farmers more efficiently. The hearing is set for Saturday on Main Street in Nevada.
In addition to reducing competition for fertilizer, Lehman argued the sale would increase prices for farmers, and ultimately mean higher food prices for Iowans. He wants Khan to hear stories firsthand, from the people on the ground in Nevada.
"We know that we might not be able to have a dialogue with the people who are investigating this situation, because they need to be impartial," Lehman acknowledged. "But our farmers need to tell their story about how the industry is already in a monopoly state."
Some 18 other ag organizations have joined the Iowa Farmers Union calling on the FTC and the Justice Department to investigate the proposed sale.
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A farm group is helping Iowa agriculture producers find ways to reduce the amount of nitrogen they use on their crops.
Excess nitrates can wind up in ground and surface water, and cause health problems.
Practical Farmers of Iowa is encouraging farmers to find just the right amount of nitrogen they need for their crops - while avoiding applying too much, which the group says is common.
PFI's Field Crops Viability Coordinator - Chelsea Ferrie - said thanks to federal grants and private funding, the group will pay farmers up to $35 for every acre that has a lower than normal yield if they didn't apply enough nitrogen.
"No cost to the farmer, either," said Ferrie. "We're trying to help incentivize them. This is something that farmers want to do - I mean, they want to be good stewards of the land - but also, that they need to have a profitable farm."
The application period for the program is open through the end of April.
To help them reach the right nitrogen balance, Ferrie said PFI will help farmers on the front end of the process, too - so they aren't left guessing how much to apply.
"Talk through what your typical fertilizer plan is, and what your reduction plan would be," said Ferrie. "Then you would implement this year, going into the spring and into the season."
Farmers have relied on nitrogen-based fertilizers for generations - but when applied in excess, nitrates run off into ground and surface water, posing health concerns for animals and people.
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Pesticides are still common in agriculture. Organic producers who avoid them have seen ups and downs in pushing for stronger regulations, and they point to a South Dakota example of the harm associated with widespread use among neighboring farms.
At the heart of the regulatory fight is the application of the weed-killing pesticide dicamba, and how it can drift from one farm to another. Last month, a federal court blocked "over the top" spraying of dicamba products, but the EPA followed with an order to allow the spraying of existing supplies.
Glenn Pulse, co-owner of an organic farm in Vermillion, said a 2017 drift incident had a big impact on his operation.
"Our entire farm was covered. We lost a lot of livestock, and thousands of bees were killed," he explained.
It also resulted in health concerns for his family, having to regain his organic farmer certification, and a legal battle over restitution. Groups such as the National Family Farm Coalition have been fighting what they call the deregulation of these chemicals, arguing the drift and runoff effect has damaged millions of crops.
Dicamba-manufacturing companies deny responsibility, instead blaming farmers who apply it for not following guidelines.
The EPA has said there were already millions of gallons of dicamba in circulation prior to the court's ruling, prompting the agency's order. Pulse feels there are farmers who are careful in spraying chemicals, but he wants stronger enforcement against those he describes as "loose cannons."
"The guys that are not following the labels and they're spraying in weather conditions that are not favorable, that is where, I would say, 90% of the problems are happening with drift incidents," Pulse said.
His calls for better responses to these incidents coincide with policy demands to heavily restrict dicamba products. Meanwhile, Rep. Dusty Johnson, D-South Dakota, is the main sponsor of a bill supporters say would assure uniformity in national pesticide labeling under federal law. But opponents argue it would limit longstanding state and local pesticide safety rules.
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