USDA Announces National Milk Testing Strategy for Highly Pathogenic Avian Influenza

Today, the USDA announced a National Milk Testing Strategy for HPAI in dairy cattle, including a federal order calling for mandatory testing of silos at milk plants and, as necessary, of farm milk samples. This supplements the existing order requiring testing for interstate movements of dairy cattle, voluntary testing programs and dairy loss indemnity payments implemented at the urging of AFBF.

USDA’s Animal & Plant Health Inspection Service (APHIS) five-stage National Milk Testing Strategy for eradicating HPAI in dairy cattle and the federal order at the heart of the strategy will require sharing of raw milk samples from milk plants, haulers, transfer stations and farm bulk tanks, as needed, but starting with milk plant silos. This authority will supplement state authorities and will allow states to implement appropriate state-specific testing programs in cooperation with USDA.

This strategy also encompasses existing efforts, including voluntary testing programs, the requirement that all private and public labs report positive tests to USDA, funding and other support for voluntary animal health interventions on farm, and the addition of milk loss payments to the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program (ELAP).

Highly Pathogenic Avian Influenza (HPAI) variant H5N1, which has severely impacted U.S. poultry and egg production in recent years, has impacted dairy cows and dairy farmers in 2024, apparently through limited crossover infections followed by undetected spread among dairy herds. It went undetected for some time due to its significant, but limited impact on dairy cow health and productivity, and the dairy industry is working with states and the federal government towards its eradication from the dairy herd.

Through December 6, 2024, USDA has reported confirmed cases of HPAI in 720 dairy herds in 15 states. USDA’s Animal & Plant Health Inspection Service (APHIS) updates these numbers weekly. (See link below.)

USDA announced its five-stage National Milk Testing Strategy for eradicating HPAI in dairy cattle. The federal order at the heart of the strategy will require sharing of raw milk samples from milk plants, haulers, transfer stations and farm bulk tanks, but starting with milk plant silos. This authority will supplement state authorities and will allow states to implement appropriate state-specific testing programs in cooperation with USDA.

States will have substantial flexibility in deciding how to act on positive tests from milk plant silo samples, including decisions about how to obtain bulk tank samples and how to engage with affected producers. Existing milk sampling procedures allow for broad access to plant, load and farm raw milk samples through the plants; this will allow authorities to move from positive silo tests to identification of affected herds relatively quickly. USDA intends to maintain confidentiality with respect to affected herds.

Note that substantial financial and technical support is available to farmers, both for their testing and animal health efforts and for their milk losses. This should support efforts to encourage state regulators to adopt a carrot-before-stick approach to affected herds.

The new USDA strategy encompasses existing efforts, including voluntary testing programs, the requirement that all private and public labs report positive tests to USDA, funding and other support for voluntary animal health interventions on farm, and the addition of milk loss payments to the Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish Program (ELAP). The ELAP payments, which are critical to both supporting affected dairy farmers and to encouraging their engagement in animal health programs, was proposed by AFBF President Zippy Duvall to U.S. Secretary of Agriculture Tom Vilsack in their first conversation about the issue of HPAI in dairy cattle.

  1. Standing Up Mandatory USDA National Plant Silo Monitoring – USDA will immediately begin nationwide testing of milk silos at dairy processing facilities. This national sample will allow USDA to identify where the disease is present, monitor trends and help states identify potentially affected herds.
  2. Determining a State’s H5N1 Dairy Cattle Status – Building on the results of silo monitoring, in collaboration with states, USDA will also boost bulk tank sampling programs that will enable us to identify herds in the state that are affected with H5N1.
  3. Detecting and Responding to the Virus in Affected States – For states with H5N1 detections, APHIS will work quickly to identify specific cases and implement rapid response measures, including enhanced biosecurity using USDA’s existing incentives programs, movement controls and contact tracing.
  4. Demonstrating Ongoing Absence of H5 in Dairy Cattle in Unaffected States – Once all dairy herds in a given state are considered to be unaffected, APHIS will continue regular sampling of farms’ bulk tanks to ensure the disease does not re-emerge. Bulk tank sampling frequency will progressively decline as the state demonstrates continual silo negativity (e.g., weekly, monthly, quarterly if continually negative). If a state becomes affected, USDA will re-engage detection and response activities, and the state will return to Stage 3.
  5. Demonstrating Freedom from H5 in U.S. Dairy Cattle – After all states move through Stage Four, APHIS will work with the states to begin periodic sampling and testing to illustrate long-term absence from the national herd.

The program will begin in six states that have already engaged substantially with USDA in voluntary efforts and in the development of this strategy. These are California, Colorado, Michigan, Mississippi, Oregon and Pennsylvania.

  • The Food and Drug Administration (FDA) has confirmed that the country’s milk supply remains safe. Milk pasteurization inactivates pathogens, including avian influenza, and has served public health well for more than 100 years.
  • In addition, as a matter of course, sick cows are removed from the milking line. Farmers follow, and are encouraged to follow, strict biosecurity protocols on the farm to protect the health of poultry and livestock.
  • In cattle, the virus can cause decreased lactation, low appetite, and other symptoms, but affected cattle have recovered from the virus except when other viruses or health issues are impacting the cattle.

USDA Announces New Federal Order, Begins National Milk Testing Strategy to Address H5N1 in Dairy Herds

USDA Builds on Actions to Protect Livestock and Public Health from H5N1 Avian Influenza

The USDA, FDA, CDC and State officials are working together to protect from avian influenza.  

HPAI Confirmed Cases in Livestock

USDA to Begin Accepting Applications for Expanded Emergency Livestock Assistance Program to Help Dairy Producers Offset Milk Loss Due to H5N1

Leading U.S. producer of South Asian yogurt will invest in a new facility, as well as source products from Virginia farms 

Desi Fresh Foods, a leading U.S. producer of dahi, or South Asian yogurt, and lassi, a drinkable South Asian yogurt, will invest a significant amount of money to open a new manufacturing facility to Frederick County, Va. The new facility will create 56 new jobs and allow the company to significantly increase its current production while committing to source a significant amount of dairy ingredients from local Virginia farmers. The Commonwealth successfully competed with Delaware, New Jersey, Pennsylvania and West Virginia for the project.  

“Virginia’s status as the top state for business enables opportunities like this, where we can bring in a leading food manufacturer that will support more routes to market for our dairy farmers while also strengthening the local economy and workforce,” said Gov. Glenn Youngkin. “The Commonwealth is committed to business development and the growth of our largest private industry – agriculture. Desi Fresh Foods will be an asset to the community of Frederick County and its local dairies.”  

“Virginia dairy farmers’ high-quality products will be an asset to Desi Fresh Foods’ ability to continue being a leading manufacturer of South Asian dairy products,” said Secretary of Agriculture and Forestry Matthew Lohr. “We’re pleased Desi Fresh Foods recognized the benefits of relocating their facility to Virginia, and we are proud to support this project and its 56 new jobs with the Governor’s Agriculture and Forestry Industries Development Fund.” 

“After an exhaustive search, we are thrilled to be opening our new facility in Northern Virginia,” said CEO of Desi Fresh Foods Larry LaPorta. “This move will not only allow us to streamline operations and increase production, but give us access to quality, essential ingredients that will help foster the growth of Desi Fresh Foods in the future and set us up for long-term success.” 

“We appreciate Desi Fresh Foods’ decision to locate its operations in Frederick County, as well as its commitment to supporting Virginia dairies,” said chairman of the Frederick County Board of Supervisors Josh Ludwig. “Their presence enhances our local food economy, which encompasses farms, agribusinesses, suppliers, and our second-largest manufacturing sector—food manufacturing. We are excited about their future success in our community.” 

“As a lifelong Virginia dairy farmer, I’m delighted Desi Fresh Foods is opening a new facility in Frederick County,” said Senator Timmy French. “The agricultural industry welcomes this opportunity and values the investment it brings to Virginia and the local economy.” 

“We are so pleased to hear that Desi Fresh Foods is relocating to Frederick County,” said Delegate William D. Wiley. “This is exactly the type of industry that we are targeting and they will complement the existing dairy industry that we embrace.”  

Founded in 2000, Desi Fresh Foods is a New York-based manufacturer of Indian-style spoonable and drinkable yogurt products that are distributed nationwide to retailers and food service customers. The company is the leading producer of dahi (a South Asian yogurt) and lassi (a drinkable South Asian yogurt) in the United States. Desi Fresh Foods’ product line includes whole milk, low-fat, fat-free, and organic yogurt and lower-fat paneer and lassi, sold through ethnic and mainstream retailers, and food service customers. 

The Virginia Economic Development Partnership and the Virginia Department of Agriculture and Consumer Services worked with the Frederick County Economic Development Authority to secure the project for Virginia. Governor Youngkin approved a $150,000 grant from the Commonwealth’s Opportunity Fund and a $150,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund to assist Frederick County with this project.  

Support for Desi Fresh Foods’ job creation will be provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Governor’s administration and the Virginia General Assembly. Launched in 2019, the program accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customized to a company’s unique products, processes, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation. 

Homestead Creamery Expansion Planned

Homestead Creamery to expand processing capacity, purchase nearly $1.9 million in Virginia-produced cream

Homestead Creamery Inc. will invest over $2.5 million to renovate and expand their Franklin County production facility. The company will construct a new ice cream production room and install additional production and refrigeration equipment and freezers, in response to increased customer demand for their premium churned ice cream products. Through this expansion, the company will add two new jobs and purchase an additional $1.9 million of Virginia-produced cream over the next three years.

“I’m grateful to Homestead Creamery for their investment into one of Virginia’s top milk-producing counties and for supporting the growth of Virginia’s dairy industry—the fourth largest commodity in the Commonwealth,” said Gov. Glenn Youngkin.

“Homestead Creamery was the very first recipient of an AFID Facility Grant in 2012. I am extremely pleased that we could partner with the company again with another AFID Facility Grant to support this expansion project,” said Secretary of Agriculture and Forestry Matthew Lohr. “This project builds on the success of a small, Virginia company and positions Homestead for future growth opportunities.”

Founded in 2001 in Burnt Chimney (Franklin County), Homestead Creamery, Inc. utilizes high-quality A2A2 milk from its network of local dairy farms to produce a variety of premium drinkable milk, ice cream, eggnog, and other dairy products that are sold through retail and wholesale networks. The company also operates an on-site retail market and deli featuring a variety of its dairy products along with Virginia’s Finest and Virginia Grown products. Homestead has grown steadily over the years and now sells its dairy products and specialty lemonade in approximately 100 stores across Virginia. Homestead Creamery’s super-premium ice cream is available in twenty-nine flavors across 13 states and Washington D.C.

Homestead Creamery, Inc. Controller Jesse Novak says, “This grant will fuel our vision for impactful building improvements, empowering us to better serve our customers and community. Together, we’re nurturing growth, innovation, and prosperity.”

The Virginia Department of Agriculture and Consumer Services (VDACS) worked with Franklin County to secure this expansion project for the Commonwealth. Youngkin approved a $20,000 grant from the Governor’s Agriculture and Forestry Industries Development Facility Grant program, which Franklin County will match with local funds.

The Agriculture and Forestry Industries Development Facility Grant program supports agribusinesses of all sizes including produce companies, dairy processors, meat and poultry processors, specialty food and beverage manufacturers, greenhouse operations, forest product manufacturers and more. The fund can also support aquaculture projects such as oyster production and nurseries producing native plants for stormwater BMPs.

Interested businesses should contact their local economic development office or the Virginia Department of Agriculture and Consumer Services for more information.

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

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.

HP Hood to Expand Operations in Frederick County

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.

Now Available: USDA Milk Loss Assistance for Dairy Operations Impacted by 2020, 2021 and 2022 Disaster Events

USDA has made available Milk Loss Program (MLP) assistance for eligible dairy operations for milk that was dumped or removed, without compensation, from the commercial milk market due to qualifying weather events and the consequences of those weather events that inhibited delivery or storage of milk (e.g., power outages, impassable roads, infrastructure losses, etc.) during calendar years 2020, 2021 and 2022. Administered by the Farm Service Agency (FSA), signup for MLP opened September 11 and runs through October 16, 2023. 

Background 

On December 29, 2022, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43), providing $10 billion for crop losses, including milk losses due to qualifying disaster events that occurred in calendar years 2020 and 2021. Additionally, the Disaster Relief Supplemental Appropriations Act, 2023 (Pub. L. 117-328) provides approximately $3 billion for disaster assistance for similar losses that occurred in calendar year 2022. 

Eligibility 

MLP compensates dairy operations for milk dumped or removed without compensation from the commercial milk market due to qualifying disaster events, including droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex) and smoke exposure that occurred in the 2020, 2021 and 2022 calendar years. Tornadoes are considered a qualifying disaster event for calendar year 2022 only.

The milk loss claim period is each calendar month that milk was dumped or removed from the commercial market. Each MLP application covers the loss in a single calendar month. Milk loss that occurs in more than one calendar month due to the same qualifying weather event requires a separate application for each month.  

The days that are eligible for assistance begin on the date the milk was removed or dumped and for concurrent days milk was removed or dumped. Once the dairy operation restarts milk marketing, the dairy operation is ineligible for assistance unless after restarting commercial milk marketing, additional milk is dumped due to the same qualifying disaster event. The duration of yearly claims is limited to 30 days per year for 2020, 2021 and 2022. 

How to Apply 

To apply for MLP, producers must submit: 

  • FSA-376, Milk Loss Program Application
  • Milk marketing statement from the:
  • Month prior to the month milk was removed or dumped.
  • Affected month.
  • Detailed written statement of milk removal circumstances, including the weather event type and geographic scope, what transportation limitations occurred and any information on what was done with the removed milk.
  • Any other information required by the regulation.

If not previously filed with FSA, applicants must also submit all the following items within 60 days of the MLP application deadline: 

  • Form AD-2047, Customer Data Worksheet.  
  • Form CCC-902, Farm Operating Plan for an individual or legal entity.   
  • Form CCC-901, Member Information for Legal Entities (if applicable).   
  • Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs (if applicable).   
  • Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, (if applicable).
  • A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the MLP producer and applicable affiliates.  

Most producers, especially those who have previously participated in FSA programs, will likely have these required forms already on file. However, those who are uncertain or want to confirm the status of their forms can contact their local FSA county office.   

MLP Payment Calculation 

The final MLP payment is determined by factoring the MLP payment calculation by the applicable MLP payment percentage.

The calculation for determining MLP payment is:

  • ((Base period per cow average daily milk production x the number of milking cows in a claim period x the number of days milk was removed or dumped in a claim period) ÷ 100) x pay price per hundredweight (cwt.).

For MLP payment calculations, the milk loss base period is the first full month of production before the dumping or removal occurred. 

The MLP payment percentage will be 90% for underserved producers, including socially disadvantaged, beginning, limited resource, and veteran farmers and ranchers and 75% for all other producers.     

To qualify for the higher payment percentage, eligible producers must have a CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, form on file with FSA for the 2022 program year.     

Adjusted Gross Income (AGI) limitations do not apply to MLP, however the payment limitation for MLP is determined by the person’s or legal entity’s average adjusted gross farm income (income derived from farming, ranching and forestry operations). Specifically, a person or legal entity, other than a joint venture or general partnership, cannot receive, directly or indirectly, more than $125,000 in payments under MLP if their average adjusted gross farm income is less than 75% of their average AGI or more than $250,000 if their adjusted gross farm income is at least 75% of their average AGI.     

More Dairy Information 

In other FSA dairy safety-net support, Dairy Margin Coverage (DMC) program payments have triggered every month, January through July, for producers who obtained coverage for the 2023 program year. July 2023’s income over feed margin of $3.52 per hundredweight (cwt.) is the lowest margin since DMC program benefits to dairy producers started in 2019. To date, FSA has paid more than $1 billion in DMC benefits to covered dairy producers for the 2023 program year.

Additionally, FSA closed the Organic Dairy Marketing Assistance Program (ODMAP) application period on August 11.

On farmers.gov, the Disaster Assistance Discovery ToolDisaster Assistance-at-a-Glance fact sheet and Loan Assistance Tool can help producers and landowners determine program or loan options. For assistance with a crop insurance claim, producers and landowners should contact their crop insurance agent. For FSA and NRCS programs, they should contact their local USDA Service Center.