Dairy Producers in Virginia Reminded to Enroll in 2024 Dairy Margin Coverage by April 29  

/ VFB Governmental Relations / Leave a comment

The U.S. Department of Agriculture (USDA) is encouraging dairy producers to enroll by April 29, 2024, for 2024 Dairy Margin Coverage (DMC), an important safety net program that helps offset milk and feed price differences. This year’s DMC signup began Feb. 28, 2024, and payments, retroactive to January, began in March 2024. So far, DMC payments triggered in January and February of 2024 at margins of $8.48 and $9.44 respectively.   

2024 DMC Coverage and Premium Fees   

FSA revised DMC regulations to extend coverage for calendar year 2024, which is retroactive to Jan. 1, 2024, and to provide an adjustment to the production history for dairy operations with less than 5 million pounds of production. In previous years, smaller dairy operations could establish a supplemental production history and receive Supplemental Dairy Margin Coverage.

For 2024, dairy producers can establish one adjusted base production history through DMC for each participating dairy operation to better reflect the operation’s current production.  

For 2024 DMC enrollment, dairy operations that established supplemental production history through Supplemental Dairy Margin Coverage for coverage years 2021 through 2023, will combine the supplemental production history with established production history for one adjusted base production history.    

For dairy operations enrolled in 2023 DMC under a multi-year lock-in contract, lock-in eligibility will be extended until Dec. 31, 2024. In addition, dairy operations enrolled in multi-year lock-in contracts are eligible for the discounted DMC premium rate during the 2024 coverage year. To confirm 2024 DMC lock-in coverage or opt out in favor of an annual contract for 2024, dairy operations having lock-in contracts must enroll during the 2024 DMC enrollment period.        

DMC offers different levels of coverage, even an option that is free to producers, minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.    

Congress passed a 2018 Farm Bill extension requiring these regulatory changes to the program. DMC is also authorized through calendar year 2024. 

DMC Payments   

DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses.  These updated feed calculations use 100% premium alfalfa hay.    

More Information  

DMC is a voluntary risk management program providing 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.  In 2023, DMC payments triggered in 11 months including two months, June and July, where the margin fell below the catastrophic level of $4.00 per hundredweight, a first for DMC or its predecessor Margin Protection Program. 

USDA also offers other risk management tools for dairy producers, including the Dairy Revenue Protection (DRP) plan that protects against a decline in milk revenue (yield and price) and the Livestock Gross Margin (LGM) plan, which provides protection against the loss of the market value of milk minus the feed costs. Both DRP and LGM livestock insurance policies are offered through the Risk Management Agency. Producers should contact their local crop insurance agent for more information.   

For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.

Is a Forest Carbon Program Right for You?

/ VFB Governmental Relations / Leave a comment

Forests play a critical role in the global carbon cycle, absorbing and storing vast amounts of carbon dioxide from the atmosphere. In Virginia, over 16 million acres (62%) of the state is forested, with the majority owned by nonindustrial private landowners. These forests sequester approximately 40% of the state’s annual carbon emissions under standard management practices.

Is a Forest Carbon Program Right for You?

A number of forest carbon project developers are operating in Virginia. As opportunities to take part in forest carbon markets increase, woodland owners are faced with many questions.

Click the button below to learn more about forest carbon credit opportunities in Virginia.

Forest Carbon Credit Programs

HP Hood to Expand Operations in Frederick County

/ VFB Governmental Relations / Leave a comment

HP Hood LLC, will invest more than $83.5 million to expand its dairy processing operations in Frederick County. The expansion project includes upgrades to production and packaging equipment and construction of additional cooler and warehouse space. The project will enable the company to further grow its business while continuing to provide a local market for Virginia dairy farms through its milk cooperative network which includes the Dairy Farmers of America and the Maryland & Virginia Milk Producers Cooperative Association.

“I commend HP Hood for their continued investment in Frederick County and in Virginia’s dairy industry, the state’s fourth largest sector in the agriculture industry,” said Gov. Glenn Youngkin. “Supporting companies like HP Hood is vitally important to Virginia’s dairy producers and spurs economic development in this area of the Commonwealth.”

Hood’s Winchester facility, which was constructed in 2000, employs more than 600 people and processes extended-shelf-life fluid milk and nondairy products for Hood’s own brands, private label partners, licensed brands and co-packing partners. The facility expansion will provide increased production capacity that is critical to the company’s operations and fund technology that will enable Hood to produce new products in response to growing customer demand.

“HP Hood has played a vital role in Frederick County’s food manufacturing sector for more than 20 years, providing employment opportunities and contributing to our economic growth,” said Josh Ludwig, Chairman of the Frederick County Board of Supervisors. “We are grateful for their continued investment and confidence in our community.”

“As a lifelong dairy farmer in the Shenandoah Valley, I’m excited to see this level of investment in dairy processing in the Commonwealth. I welcome HP Hood’s investment in the community and look forward to growing Virginia’s dairy supply to meet their needs,” said Senator Timmy French.

The Virginia Department of Agriculture and Consumer Services (VDACS) worked with Frederick County and the Frederick County Economic Development Authority to secure the project for Virginia. Governor Youngkin approved a $50,000 Infrastructure Grant from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, which Frederick County will match with local funds.

“I am pleased that the Commonwealth will continue its partnership with Frederick County and HP Hood to increase market opportunities for Virginia dairy producers. This announcement is certainly a win-win for Frederick County, the state’s dairy producers and Virginia agriculture,” said Secretary of Agriculture and Forestry Matthew Lohr.

“We proudly selected this location to build a greenfield plant more than 24 years ago and have been grateful for the ongoing support of Frederick County and the Commonwealth of Virginia,” said Gary Kaneb, President and CEO of HP Hood. “This expansion enables us to continue to grow Hood’s business and accommodate the everchanging needs of our customers and continue to provide a market for local dairy farms through our local milk cooperative network.”

Founded in 1846 in Charlestown, Massachusetts as a milk delivery service, HP Hood is a nationally branded dairy processor with more than 3,000 employees and annual sales revenues of approx. $3.5 billion. The company manufactures conventional, extended-shelf life (ESL) and shelf stable dairy and non-dairy beverages cultured products, as well as ice cream and frozen desserts. The company’s broad portfolio of retail consumer product brands include Hood, Heluva Good!, Lactaid, Blue Diamond Almond Breeze, and Planet Oat, to name a few. In addition to selling its products through traditional retail and wholesale channels, the company also manufactures private-label products and provides co-packing services.

Beginning farmers encouraged to attend seminar

/ VFB Governmental Relations / Leave a comment

Educational workshop will be held on April 25.

There are many components to starting a farm operation, with access to financing being one of the biggest challenges. To assist new agricultural producers in finding financial sources, the Virginia Secretariat of Agriculture and Forestry, in partnership with key lending institutions and state and federal agencies, will host a Farm Finance and Conservation Planning Seminar.

The educational workshop will be held on April 25 at Virginia Tech’s Alphin-Stuart Livestock Arena in Blacksburg, Va. New and beginning farmers are encouraged to register for this free networking and learning opportunity. Please register by April 22, by emailing Josie.Rao@Governor.Virginia.Gov.

“As agriculture is the Commonwealth’s top private industry, Gov. Glenn Youngkin is committed to the industry’s continued development as a growth engine and source of jobs throughout rural Virginia,” said Matthew Lohr, Secretary of Agriculture and Forestry. Lohr says the free seminar will provide critical farm financing and cost share conservation opportunities to help the next generation of agricultural producers find success.

FARM FINANCE & CONSERVATION PLANNING SEMINAR

April 25 · 9 am–2:30 pm

Virginia Tech, Alphin-Stuart Livestock Arena, 500 Plantation Rd, Blacksburg, VA 24061

Hosted by the Virginia Secretary of Agriculture and Forestry

Join this free networking event for beginner farmers to discover farm financing options and cost share conservation opportunities.

Presentations by:

  • Colonial Farm Credit
  • First Bank & Trust
  • The Bank of Southside Virginia
  • USDA Farm Service Agency (FSA)
  • Virginia Soil & Water Conservation Districts
  • Virginia Cooperative Extension
  • USDA Natural Resource Conservation Service (NRCS)
  • VSU Small Farm Outreach Program

Register Today! Please register by April 22, by emailing Josie.Rao@Governor.Virginia.Gov.

Heirs Property Seminar

/ VFB Governmental Relations / Leave a comment

What Is Heirs Property 101

Tuesday, April 16 • 9AM – 1PM VCE Greensville Office, 105 Oak St, Emporia, VA

Register

What is Heirs Property 101? Estate planning, land transition, land access and land succession. This training will equip extension staff with the tools to provide education, training and outreach to underprivileged producers and landowners to improve their understanding of Heirs Property at the community level. The workshop will also offer land inheritance education and resources to disadvantaged landowners and their heirs.

Special guest presenter Lillian “Ebonie” Alexander, the Executive Director of the Black Family Land Trust, Inc., lives on her family farm in rural Southside Virginia. She will discuss the challenges families face in retaining land and family communication surrounding land inheritance. She will also share resources and steps for successful family land assets building and succession.

The VSU Heirs Property team consists of the Small Farm Outreach Program, The Black Family Land Trust, The Tennie Group, S. Miller Law Firm and our Virginia Tech Extension Partners. The VSU-SFOP Heirs Property Train-the-Trainer model will be used to educate other extension professionals who work with landowners and underserved communities. For more information, contact Marilyn Estes at 804-481-0485 or mestes@vsu.edu.

Center for Rural Virginia Renamed as the Senator Frank M. Ruff, Jr. Center for Rural Virginia

/ VFB Governmental Relations / Leave a comment

Gov. Glenn Youngkin signed legislation this week to rename the Center for Rural Virginia as the Sen. Frank M. Ruff, Jr. Center for Rural Virginia. Surrounded by Senator Ruff’s family and General Assembly colleagues, Youngkin also announced Ruff’s appointment as a citizen member to the Tobacco Region Revitalization Commission.

“Today presents a wonderful opportunity to pay tribute to a lifetime servant leader, Senator Frank Ruff, whose pivotal role in founding the Center for Rural Virginia will be commemorated in its name,” said Youngkin. “I am delighted to sign this legislation and turn the next chapter for this center as the ‘Senator Frank M. Ruff, Jr. Center for Rural Virginia.”

“I have been a proud supporter of the Center for Rural Virginia since its creation twenty years ago,” said Ruff. “I am pleased with how the Center continues to make rural Virginia a place where people can grow up, learn, get a good job, and raise their families. I look forward to being a part of the next phase of the Center.”

Former Sen. Frank M. Ruff Jr. was also honored with the Distinguished Service to Agriculture Award by Virginia Farm Bureau Federation. The award was presented to Ruff during a private event with his family on March 26.

Ruff has a long track record of supporting the state’s No. 1 industry and has historically sought to understand the unique needs of the farming population.

He served in the Virginia House of Delegates from 1994 until 2000, when he was elected to the Virginia Senate. He retired from the Senate in December. Ruff held seats on key committees in the Virginia General Assembly that influenced policy impacting farmers, including the Agriculture, Appropriations, and General Laws & Technology committees. He also chaired the Virginia Tobacco Region and Revitalization Commission and the Center for Rural Virginia board of trustees.

Martha Moore, VFBF senior vice president of governmental relations, added that Farm Bureau is grateful for Ruff’s 100% voting record with Virginia Farm Bureau Federation AgPAC for the last decade, “and we are pleased that he continues to be a true advocate for farmers. Without his leadership and seniority, Virginia Farm Bureau would not have been as successful on numerous critical issues.”

In the last few years, Ruff introduced budget amendments to provide funding for FFA, the Center for Rural Virginia, the Wildlife Damage Cooperative Fund, the Forest Sustainability Fund, soil and water conservation districts, Virginia Cooperative Extension and the state’s agricultural best management practices cost-share program.

He carried legislation on industrial hemp and patroned a bill that increased state matching funds for the Reforestation of Timberlands Program. He also co-patroned legislation that amended Virginia’s Right to Farm Act. Additionally, he previously sponsored legislation to create Virginia’s Century Forest Program.

“In 2013, Senator Ruff was the main advocate in the Senate to support Farm Bureau’s position on keeping the moratorium on uranium mining,” Moore added. “And those are just a few of the Farm Bureau-backed budget amendments and policy initiatives he supported in his 30-plus-year legislative career.”