The Minnesota Legislature reconvenes today after a week-long recess last week in observance of Easter and Passover. Legislative work will begin to shift over the next few weeks from bills heard in policy committees to supplemental budget bills receiving consideration in finance committees and ultimately the Ways & Means Committee in the House and the Finance Committee in the Senate. From there, the larger budget bills will move to the House and Senate chambers which will start to get busier in April.
The House Ways & Means Committee is scheduled to again consider the DAIRI “fix” bill later today. HF 3508 (Nelson) broadens eligibility under the fiscal year 2024/2025 DAIRI appropriation so that new dairy farms that have come into existence since 2022 would be eligible for the grants that incentivize participation in the 6-year USDA Dairy Margin Coverage sign-up. The bills companion, SF 3832 (Kupec) has already passed the Senate unanimously, but Rep. Nelson’s version of the bill was blocked by Democrats in the Ways & Means Committee on March 23 for nonsensical political reasons.
The House and Senate Agriculture Committees are scheduled to meet on Wednesday this week for informational meetings on several bills that did not make the committee deadline on March 27.
Dairy market report
Source: Ever.Ag
We partner with Ever.Ag to provide highlights of weekly dairy market activities, along with a summary of key market indicators.
NDM climbed to a new year-to-date high of $1.9725 per pound, $0.0500 higher week-over-week. Spot blocks leapt higher over the holiday-shortened week, reaching $1.6725 per pound on Thursday – up $0.0900 from last Friday. Barrels closed at $1.5925, up $0.0275 week-over-week. Butter fell $0.0350 on the week to $1.7900 per pound.
After a decade of advocating for our dairy community, I’m writing to share that I will be stepping down from my role at Minnesota Milk and Edge Dairy, with my final day being Friday, April 10. It has been the absolute honor of my career to work alongside our farmers, our board, and the incredible Voice of Milk team. I’ll be transitioning to a new role at Specialty Herd Solutions, where I will stay close to the industry by helping farmers implement automated herd health technologies. Minnesota Milk remains incredibly strong and well-supported, and during this transition, our Chief Policy Officer, Karen Gefvert, will be your primary contact. Thank you for your partnership, your trust, and ten incredible years.
Edge comments to USDA on proposed mandatory survey
Source: Edge Dairy Farmer Cooperative
Edge Dairy Farmer Cooperative recently submitted comments to USDA regarding a proposed mandatory survey that would collect data on dairy manufacturing costs and product yields. This survey is important because the results will directly influence how milk prices are calculated under Federal Milk Marketing Orders (FMMOs), specifically through make allowances and yield formulas.
Our message is clear: the way this data is collected and reported will have real financial impacts on dairy farmers. Edge strongly supports a transparent and well-designed survey but emphasizes that the details matter.
First, we urged USDA to publish data with as much detail as possible—while still protecting confidentiality. Manufacturing costs vary widely across the industry depending on plant location, scale, and especially the age and modernization of facilities. Rather than reporting a single average, USDA should publish distributional statistics, such as percentile breakdowns and ranges, so that stakeholders can see the full picture of cost variation across the industry.
Second, and most importantly, Edge argued that the survey data should enable USDA to set make allowances based on the costs of the most efficient plants rather than industry averages. This matters directly to farmers because make allowances are deducted from commodity prices to determine the regulated minimum price paid for milk. When make allowances are inflated by the costs of outdated, under-invested, or poorly managed plants, every dairy farmer receives a lower price, even farmers shipping to efficient operations. Plants may report high costs for reasons that have nothing to do with the true cost of manufacturing: deferred capital investment, blended costs from specialty product lines, governance choices that prioritize spending elsewhere (e.g. subsidized hauling), or simple operational inefficiency. Basing make allowances on frontier-level performance sends a clear signal that processors must invest and modernize, rather than passing the costs of inefficiency on to producers through lower regulated prices.
Edge will continue advocating to ensure farmer interests are protected throughout this process.
Grants available to boost sales of Minnesota ag products
Source: MN Department of Ag
The Minnesota Department of Agriculture (MDA) is now accepting applications for the Agricultural Growth, Research, and Innovation (AGRI) Value-Added and Meat, Poultry, Egg, and Milk Processing (MPEM) Grants. These reimbursement grant programs provide funding for eligible applicants to invest in equipment and physical improvement projects that support expanding processing capacity, market diversification, and market access for Minnesota agricultural products.
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