milk

Homestead Creamery Expansion Planned

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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.

HP Hood to Expand Operations in Frederick County

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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

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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 Tool, Disaster 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.