Session 4

Session 4-Illinois and DC

David Dewit

The topic of this journey was Federal Legislation. We traveled first to Green field Illinois and met with the Elanco Rep. We learned about all the things that Elanco is doing to benefit the dairy industry as a whole. We then traveled to Washington, D.C. We had two full days of visiting with politicians who were on our side.

·         Brian Billbrae rep. Andrew Lund

·         Debbie Jessup a rep for Congresswoman Lucille Roybal-Allard.

·         Kristen Glenn rep for Tom McClintock

·         John Lowry for Joe Bacha

·         Lillian McFarlan and Devin Rhinerson rep Senator Diane Feinstein

·         Staff Member from Senator Barbara Boxer

During these meetings we firmly pressed these reps to understand the problems we has farmers face, and we gave possible solutions as well.

The following day we were back at the Capitol meeting with Kyle Lombardi, rep for Congressman McCarthy and others. We did get the opportunity to walk to Kim Altons office who is a representative for Diane Feinstein and got to voice concerns about labor laws.

After meeting these people I had a better understanding of how this system works. If you don’t speak up you will be ignored. Influences revolve around wealth and opinions. WUD is fighting many issues underground. We should all have an appreciation for the things they do than only a few get to see first hand.

Session 3

Session 3-Modesto

David Dewit

Our third session was in Modesto at the WUD headquarters. This session would be about California milk Pricing. The fist presenter would be WUD economist Annie AcMoody.  She spoke about how milks is priced in this state. The second presenter was Dr. William Schiek, he told us about the domestic and global outlook concerning dairy products. That night at diner we met Ray Sousa who was a past president and board member of WUD. Ray had a  lot of life experience about the dairy industry and it was interesting to listen to his insight.

The second day we had a meeting with people from CDFA. They were Candace Gates from the dairy marketing branch. She spoke about setting milk prices. Next was Mike Francesconi and the cost production studies and manufacturing cost. Las was Amber Rankin, an Ag Economist, speaking to the California hearing process.  Later that day we me up with John Lee who was the CDFA pooling branch chief, he gave us his Bio and talked about all the things he has done in his career. Don Shippelhoute gave us information about all of the different pooling operations. I enjoyed listening to Shippelhoute, as he has encountered obstacles and had found interesting solutions for them.

The final day was a meeting with WUD CEO, Mike Marsh. Mr. Marsh told us the current state of issues, and what the organization was doing about them. Next, Eric Erba from CDI tols us some facts about production base, plant capacity, and transportation allowances. The last presenter was Tiffany La Mendola of Bliming and Associates, with her tool on Margin Management.

On our way to Gallo

On our way to Gallo to check out their sustainable operation and we couldn't be more excited!

Session 4 Journal

Session 4 Journal

Federal Legislation

Trevor Nutcher

September 18-19, 2012

During our stay in Washington D.C. for Session 4, we spent two days visiting with members of Congress and the Senate.  From where Lauren Reid finished talking about the first half of the activities, to the last Metro ride back to the hotel, we had a very good, and very busy, day and a half.

Starting after lunch on Tuesday, September 18, we met with Congressman Brian Billbrae’s staff member Andrew Lund.  After Andrew, we met with Debbie Jessup, staff member for Congresswoman Lucille Roybal-Allard.  Next in our lineup we met with Patricia Ross, for Congresswoman Nancy Pelosi, followed by Kristen Glenn for Congressman Tom McClintock.  Next we met with John Lowrey for Congressman Joe Baca, followed by Lillian McFarlan and Devin Rhinerson for Senator Dianne Feinstein.  Then ending the day meeting with a staff member from Senator Barbara Boxer.

Through each of these meetings, we gave our stories on what we were experiencing in the California Dairy Industry and let the staff members know that we were being affected by all of the legislation going through.  Some of the topics we covered with them were: the Margin Insurance Program, Ethanol Subsidies, Trans-Pacific Partners, Labor Issues, Estate Tax, Federal Milk Marketing Orders, and a few other Farm Bill issues such as the King Amendment and Conservation Title.  We all chimed in on certain issues and fed off of each other, giving our personal side of how legislation is and could be affecting us as individual farms and as an industry. 

Tuesday concluded with a very nice dinner at Capitol Grill with Charlie Garrison.  It was a beautiful restaurant and had fantastic food and wine.  After dinner, many of the group went out with Charlie to a bar on top of a hotel near the White House.  Even though it was raining, the covered roof had open sides looking out and we could see the White House, Washington Monument and Lincoln Memorial.  It was a beautiful site to see with all of them lit up at night. 

Wednesday was a nice sunny day.  We started out with a good ride on the metro over to the Congress building as the day before.  Once there, we had a meeting with Kyle Lombardi, staff member for Congressman Kevin McCarthy, followed by Vincent Rocha for Congressmen Jerry McNearney.  Next we met with Mary Knigge from the Democrat Staff Agricultural Committee.  Following Mary, we met with Andrew House for Congressman Devin Nunes, then over to the Senate building to meet with Kim Alton on labor issues for Senator Dianne Feinstein.  Next we were back to the Congress side to meet with Donald Grady for Congressman Jim Costa, then Ben Gutman for member of Congress, Zoe Lofgren, then finishing up meeting with Congressman Jeff Denham himself. 

This day was a little less stressful.  We were familiar with the topics and the questions that the staff members might have for us.  We were also more familiar with how our arguments would be received by different staff members.  I was also very impressed with the Senate.  They really seemed to take genuine interest in what we were saying.  I was also impressed at the level of bi-partisan support we received through Charlie Garrison’s efforts.   I felt a touch unprepared for each meeting as far as knowing who their congressman was.  Some research on my part to see where their district was and what was in their area along with what their affiliations are would have been wise.  That all went to show that I need to take it more seriously and to follow things that are going on in Washington D.C. more closely.

Once we finished our visit with Congressman Jeff Denham, we were back to the hotel to pack, say farewell and thank Charlie, and off to the airport.  Charlie really impressed me not only from meeting and spending time with him, but seeing how the people he met with on a regular basis responded to our presence.  Charlie is doing a great job for us in D.C. and I am glad to see what an influence he is on our behalf.  Most people we met with knew of the issues and had a good idea how it was or could affect us.  It was very encouraging to know that we have someone fighting for us in the ‘big leagues’.  Thanks Charlie! 

As for Washington D.C., I learned a great deal.  It showed me how much of an impact we can make actually visiting with these staff members.  I also learned that I should be more up to date on what is going on in D.C.  The issues we talked about with the staff members weren’t new to me but I wasn’t as familiar with them as I should have been.  The Farm Bill issue was interesting to me in that no one seemed really motivated to get anything done.  The concerns we brought up were valid and pertinent but everyone was waiting on other issues based on who gets elected in November.  At the end of the day, it is still a political stage.

During our talks with each staff member, it was neat to see how they responded.  Some really appreciated our input and took it to heart, others knew what we were saying already and it was a good reinforcement. Others seemed to not be terribly interested.  I was also very surprised at the difference in the Congress verses the Senate.  The Senate side really seemed to have their ducks in a row.  They had already passed their version of the Farm Bill and seemed to be much more receptive to what we had to say.  I was very impressed with all the staff members of the Senate whom we met with.  It was nice to learn that we can make a difference and not everyone is against the dairy industry. 

To conclude this Journal, I would like to say that I really enjoyed my time in Washington D.C.  It was a beautiful visit filled with a lot of neat history and sightseeing but also with a great deal of respect for those who speak on our behalf.  It’s easy to sit at home and complain about the way something is or hear one side of the story and buy into it, but to really search it out and get involved enough to make a difference in what matters, that takes a lot of time and effort.  I am very thankful for WUD and Charlie Garrison for telling our side of the story and keeping Dairy’s best interest at heart.  It’s nice to know we have a group like that fighting for us on the Federal level. 

Session #3 of the Western United Dairy Leaders was held in Modesto California at the WUD office. The general topic of this session was California dairy economics and California milk pricing. Annie AcMoody, director of Economic Analysis for WUD, gave the first presentation for the session which was an overview of California pricing and the pooling system. Annie did a great job explaining a complicated system leaving everyone with a better understanding of how the pooling and pricing system works in California.  

Dr. William Schiek from Dairy Institute of California gave a presentation on Domestic and Global Market Outlook. He went over the basics of how the milk price is driven by supply and demand. Following Dr. Schiek’s presentation we met up with Michael Marsh and Ray Souza for dinner at Surlas Restaurant in Modesto. Throughout dinner Ray gave an overview of how the California milk pricing system has change over the years, especially in regards to milk pooling. It was interesting to hear the history of the pricing system from a dairyman who milked cows before milk pooling was around.

The following day we met back up at the WUD office after breakfast. Mike Francesconi gave the first presentation for the day giving an overview of what the Dairy Marketing Branch does within CDFA. Venetta Reed, also from CDFA presented on how cost studies are conducted through processors and how those costs are factored into the pricing system. Amber Rankin gave a presentation on the California hearing process and the difference between the Federal hearing process. Following lunch, Mike Francesconi spoke with us regarding Cost of Production Studies CDFA. This was interesting to see how the studies are conducted with a range of different styles of dairies. This is valuable information for dairymen to compare their numbers with. John Lee, Chief of the CDFA Milk Pooling Branch described his job and an overview of what the duties of the CDFA Milk Pooling Branch are. John Bressett from the producer Security Assurance Team talked about their role within CDFA and how they monitor transactions between milk handlers and producers. Don Shippelhoute wrapped up the second day with an open discussion of milk pooling. This was a very interactive presentation and a good way to end a long day of speakers.

The third and final day of the session we met up at the WUD office once again. Michael Marsh gave an overview of current issues going on in the dairy industry and how WUD is taking a proactive approach. Eric Erba, Senior Vice President from CDI, talked to us about the role co-ops play in transporting milk and making sure that milk has a home. This was an interesting presentation and eye-opening to see all that is involved once milk leaves the dairy. Tiffany LaMendola from Blimling and Associates spoke with us about margin management. This was a great presentation with material that is especially helpful now with markets being so volatile.

This was a very valuable session as milk pricing is a topic that many dairymen are not comfortable with.  The presenters in this session helped with my understanding of the California Pricing system and why things are the way they are. 

Sunday morning Mass

The Cathedral of Saint Matthew the Apostle was an incredible start to our day. With portions of Mass said in Latin and English, pipe organ, an amazing choir, mosaic covered walls and no detail overlooked, right up to the highest inch.

First stop in Washington DC...

Checking out CA Dairy products at Cowgirl Creamery!

9-11 Memorial Indianapolis

We were amazed to stumble upon this national treasure

A day at Elanco

Today members of Class 11 spent the day at Elanco headquarters in Greenfield, IL. Discussions focused on global hunger and rising to meet the needs of our growing population.

By the year 2050, the world will be home to 9 Billion people, and we will need to produce 100% More Food to be able to feed everyone.

On the drive to and from the Elanco office, class members got the chance to see some of the drought ridden, dried up corn fields along the highway. A stark contrast to the fields we left in CA.

Indianapolis downtime

Dairy Leaders enjoying the Indiana afternoon!

Session 3 Synopsis

      Session #3 was the economic session and was held in Modesto, CA, primarily at the Western United Dairymen's office.  We started out the first day meeting with Annie AcMoody, from Western United, where we went over the California pricing system and how pooling and the different classes all contribute to our "mailbox price".  We also heard from Dr. William Schiek, from Dairy Institute of California on what the outlook for both global and local markets are for the coming months.  Following this we went to dinner at Surla's Restaurant where we talked with guest, Ray Souza, about what the milk pooling system did for producers compared to what had been the norm prior to pooling in California.

     The second day we were at the WUD office again.  We had a busy day of speakers but all with great information.  We heard from Mike Francesconi, from CDFA, about the function and duties of the Dairy Marketing Branch within the CDFA.  Following Mike, we heard from Venetta Reed, also from CDFA.  She talked about the Manufacturing Cost Studies which they do, and how they play into the pricing formulas.  Next, Amber Rankin talked to us about the California Hearing process which is how anything is changed regarding pricing and pooling regulations and formulas.  She then gave us a nice overview on the California vs. Federal systems.  We went over pricing and marketing as well as pooling regulations and special circumstances like producer-handlers.  We then had a nice lunch at the WUD office and heard from Mike Francesconi again, about the Cost of Production studies which was very interesting to me as a great set of benchmarks with which to see how our dairy is doing on the cost side of things.  Then after Mike, we heard from John Lee from the CDFA Milk Pooling Branch.  John gave us an overview of what the Milk Pooling Branch does.  Next was John Bressett who talked to us about the Producer Security Assurance Team.  They deal with making sure that we as producers, are not being taken advantage of by processors, trucking costs, etc.  Lastly we heard from Don Shippelhoute who gave a very detailed discussion on milk pooling in California.  We met at the Firkin and Fox pub for dinner and followed up with a Modesto Nuts baseball game.

    The third day of the session was also at the WUD office.  We began the day hearing from Mike Marsh about Western United Dairymen and all that they do for us as producers, along with their involvement in recent and current issues affecting the dairy industry.  Then we met with Eric Erba, from California Dairies.  He went over the challenges beyond the farm such as transporting the milk, balancing supply and demand, and plant capacity and production base.  To end the session, we heard from Tiffany LaMendola, from Blimling and Associates, Inc.  She gave us a very in depth look at hedging and risk management through use of the futures markets on the milk side.

    This third session was overall very informative.  Every speaker gave a great presentation and they were all extremely willing to answer our questions.  I really enjoyed getting into great discussions with all of them and was very engaged with this whole session.  I feel I really gained a lot from learning how milk in California is actually priced, and why it is this way.  The topics relating to the future of the industry were very interesting;  talking about what problems there are and possible solutions to be found to overcome those as an industry.  Each session continues to be very challenging and engaging, I am very much looking forward to the final two!

Session 3

Jarred Mello
Session # 3
​On August 7-9 the Western United Dairy Leaders met in Modesto for our Session # 3. We met in Modesto, CA at the WUD office in down town Modesto. This session was about California milk pricing. Our first presentation was on the milk pricing formula. Annie AcMoody, WUD economist, headed this presentation. It was very informational. Annie painted a good picture of a very complicated California pricing system. I left there with a comfortable idea of how it all works.
​Following that, Dr. William Schiek talked to us about the domestic and global market outlook. Dr. William Schiek is an economist from the Dairy Institute of California. Being the second presentation, it was really interesting. Looking at current and future markets gives a positive outlook for dairy producers.
​That evening we went to dinner at Surlas restaurant with Mike Marsh and Ray Sousa. Dinner was very good. Ray Sousa is a past president and board member of WUD. He gave us a good idea of what it was like being a dairyman before the California pooling and quota system. He is very knowledgeable on both the dairy producer side and the political side of the industry. It seems like we need more people like Ray in California.
​Wednesday morning after breakfast, we met again at the WUD office to meet a few people from CDFA. Candace Gates from the Dairy Marketing Branch talked to us about its role in setting milk prices. Mike Francesconi talked to us about Manufacturing costs and Cost of Production studies. Amber Rankin, an ag economist, talked to us about the California Hearing Process. They Were all very interesting lectures that provided a good insight to their roles in the dairy industry.
​Following our last break of the dairy, a few gentlemen from the California Pooling Branch and Producer Security Trust Fund talked to us about their roles in the industry. John Lee, who is the CDFA Pooling Branch Chief, gave us a short intro on how the branch is set up. Later Don Shippelhoute closed things up with talking about the different pooling operations. This presentation was really interesting because there were so many questions about how the pool worked. Explain the operation of the pool took a colorful drawing on the white board that needed lots of explanation.
​Later that even the Dairy Leaders went to have appetizers at the Firkin & Fox pub with Annie AcMoody. Following that, we went to a Modesto Nuts baseball game. It was very entertaining and a good bonding experience for the group.
​Thursday was only a half day for us. We met at the WUD office again and kicked things off with Mike Marsh informing us about all the things WUD are dealing with in our industry right now.
​After that Dr. Eric Erba, from CDI talked to us about transportation, milk procurement challenges, plant capacity, and production base issues that CDI deals with. This was an interesting presentation but maybe a little long. I say that because we got shorted on time with our last speaker, Tiffany LaMendola.
Tiffany LaMendola, from Blimling and Associates, talked to us about Margin Management. It was really interesting stuff. I just wish we had enough time to talked about it and ask more questions.
Overall Session # 3 was the most interesting so far. Milk pricing is one of the most confusing and hardest things to comprehend in the dairy industry. Leaving session # 3 though, I feel a lot more comfortable and have a better understanding of milk pricing and everything that goes into it.

The night life!!

Down town bonding as a crew...

Play Ball!

Tonight CA Dairy Leaders are enjoying a relaxing evening with the Modesto Nuts, after studying Pricing & Pooling all day!

session #2 synopsis

The second session of the WUD Dairy Leaders program took place on June 12^th in Sacramento, Ca. The purpose of this session was to gain an understanding of the California state legislation process while also meeting politicians that have contributed to the California dairy industry.

Upon meeting in Sacramento we were greeted by Western United’s lobbyist, Mr. Gary Conover at the Broiler Room. Gary was our tour guide throughout our stay in Sacramento and proved to be very knowledgeable with what he does. While eating dinner at the Broiler Room, Gary explained the basics of the Legislative process with the help of Jim Collin, the chief consultant for Assemblywoman Cathleen Galgiani.

The following day we started the day off with a tour of the Capital building. This was a very interesting tour as we learned the history of our state capital and got to view the senate and assembly rooms. After our tour concluded we met up with Mr. Conover where we sat in on a Committee hearing for Senate Labor and Industrial Relations. This was a great experience as we got to see how a Committee hearing is run while listening to two conflicting parties.

After gaining an understanding of how a Committee operates we spent the remainder of the day with Mr. Conover who took us to meet key politicians that generally ally with the dairy industry. This was a great experience as we were able to visit with these politicians in their offices. By the end of the day we had met with Assemblywomen Connie Conway, Senator Anthony Cannella, Assemblyman David Valadao, Assemblywomen Fiona Ma, Senator Leland Yee, Senator Tom Berryhill, and his brother Assemblyman Bill Berryhill. Meeting with these politicians allowed us to gain an understanding of what life as a Politian is about while also becoming more familiar with the faces that represent us.

On the final day of our trip we were introduced on the Senate and Assembly floor at the start of the session. This was a great honor to be introduced on the floor amongst all of our state Senators and Assemblymen. Overall this was a great trip that gave me insight as to what goes on in Sacramento and the whole legislative process. Mr. Conover was invaluable on this trip as we would have been lost without him.  He did a great job informing our group with all he could and was a huge help through our time in Sacramento.