Board Summary of November 2022 USJersey Organizations

The fall meetings of the American Jersey Cattle Association (AJCA) and National All-Jersey Inc. (NAJ). Boards of Directors were held November 2 and 3, 2022, at the Hilton Garden Inn-Airport, Louisville, Ky. Actions are summarized below.

Finances and 2023 Budget. Financial statements for the AJCA and National All-Jersey Inc. and Subsidiary, All-Jersey Sales Corporation (Jersey Marketing Service) were reviewed. Through nine months, the AJCA reported revenues of $2,730,583 and expenditures of $2,556,366 before the All American. NAJ reported revenues of $478,203 versus expenditures of $415,755. JMS revenues were $243,618; expenditures were $131,800. A net income through September 30, 2022, for all organizations was reported of $348,483 before the All American.

Budgets for 2023 were approved. Total AJCA revenues were budgeted at $3,550,380 against expenditures of $3,550,145. The AJCA budget was based on 136,000 registrations, 19,000 transfers, 170,250 cows enrolled on all performance programs (167,000 on REAP), 295,000 JerseyTags units, 7,055 genomic and ID qualification tests, and 313 pages of paid advertising in Jersey Journal.

The budget for National All-Jersey Inc. was based upon 1,005 Equity investors and All-Jersey Sales Corp. revenues of $199,500. Budgeted revenues for NAJ-AJSC combined were $826,250, with budgeted expenditures of $821,860.

Market values of investments at September 30 were: Building Fund, $1,362,879; Investment Trust, $936,388; Scholarship and other awards funds, $934,683; Jersey Youth Academy, $497,464; and AJCC Research Foundation, $2,441,898.

The Investment Advisory Committee met with investment managers on November 6 to review current portfolios and set investment strategies for 2023.

The board of directors approved the budget for Class VIII of Jersey Youth Academy.

Virtual spring meetings to be held. It was approved by the board of directors to have the AJCA, NAJ March board meetings, All American planning meetings, and the January USJersey staff conference to be held virtually in 2023.

Fee Adjustments for Performance Programs. Approval of the 2023 AJCA budget included pricing increases for REAP enrollment.

Annual herd fees for REAP, TPE and STEP increased from $150 to $165.

A new tier for 1-50 cows was added to all performance programs.

REAP fees: (previous fees in parenthesis)
• 1-50 cows – $14.50 per cow ($13);
• 51-100 cows – $14.00 ($13);
• 101-300 cows – $11.00 ($10.50);
• 301-500 cows – $8.75 ($8.25);
• 501-1,000 cows – $6.50 ($6);
• 1,001-3,000 cows – $5.50 ($5.25); and
• 3,001 and up cows – $4.75 (no change)

Equity fees will increase to $3.80 ($3.75) per cow as voted on by the NAJ board.

Lifetime membership will also increase to $150 beginning January 1, 2023.

Recording on miniature Jerseys as Unkown in the Jersey database for purposes of genotyping and recording.

Regional and National Shows. The Western National, Pennsylvania All-American (Harrisburg), World Dairy Expo and California Spring Jersey Show were designated as AJCA regional shows for 2023. Designations are contingent upon enforcement of the PDCA Show Ring Code of Ethics, with all cows subject to ultrasound and milk sample testing.

For the 2023 All American shows, $5,000 was allocated to be divided equally among junior exhibitors.

August 1 will continue to be the date for fall show transfers for junior show eligibility. For a spring national show, April 1, will be the deadline for transfers and registrations to meet the ownership requirement.

Appointments. Named as associate chairs for the 2023 All American planning committees were Herby Lutz, Chester, S.C, sale; Lisa Demmer, Ellsworth, Wis., open show; Donna Phillips, Newton, Wis., National Jersey Jug Futurity; and Regina Pozzi, Petaluma, Calif., junior activities.
Grant Ahlem, Hilmar, Calif., was appointed for a five-year term on the Research Advisory Committee.

 

 

National All-Jersey Inc.
The National All-Jersey board reviewed the 2022 dairy situation which experienced record-high milk prices but coupled with extremely high input costs. For the fourth consecutive year the Dairy Margin Coverage (DMC) program paid more in indemnities than premiums costs for up to five million pounds insured for $9.50/cwt. income over feed costs. Due to lower expected milk prices in 2023, projections are that DMC payments will average $1.38/cwt. for $9.50 coverage in exchange for premium cost of $0.15/cwt.

Staff reported that the Dairy Cooperative Marketing Association (DCMA), a marketing agency in common of co-ops serving the Southeast, petitioned USDA to modify existing transportation credits in federal orders 5, 6, and 7, and to initiate market service payments in those same orders. Due to the limited scope of the hearing request, multiple component pricing for those orders was not eligible for inclusion.

The board reviewed the potential impact of the recently announced federal order recommendations from the National Milk Producers Federation board of directors.

Those recommendations include:

• Increasing make allowances used in the product price formulas
• Return to using the ‘higher of’ the advance Class III and IV price to be the Class I base price
• Update Class I differentials
• Discontinue using the barrel cheese price in the protein price formula
• Increase the protein, other solids, and solids-not-fat factors in the Class III and Class IV price formulas
• Extend to 45 days (from the current 30 days) the reporting period of export sales of nonfat dry milk and dry whey

Expectations are that a national hearing will be held in the latter half of 2023.

The board approved NAJ’s proposed 2023 objectives.

1. Be engaged in Federal Milk Marketing Order activities
~Continue to work with industry partners to promote and implement multiple component pricing in FMMOs in the southeast. May be
a window of opportunity to submit proposal in late 2022 with hearing in early 2023.
~Analyze NMPF’s proposals for a national hearing
~ Monitor IDFA’s national hearing proposals
~ Class I price formula
~ Class III/IV make allowance, yield factors, commodity price surveys
~ Prospects to limit depooling

2. Research
~ Analyze and promote results of Dr. Mitloehner’s update to the Capper/Cady sustainability analysis.
~ Recruit new research opportunities

3. Be active in dairy issues in 2023 Farm Bill
~ Renew Dairy Margin Coverage
~ Expanding milk choice in School Lunch Program
~ Maintaining nutrition programs
~ Support processing plant cost survey
~ Climate title

4. Organize board and staff fly-in to meet with Members of Congress and their staffs about priority issues for NAJ, AJCA and the U.S. dairy industry.

5. Monitor and communicate with members about opportunities available through the four regional Dairy Business Innovation Initiatives

6. All-Jersey® and Queen of Quality® programs: (a) enroll new producers, (b) expand services and support provided, (c) develop and promote new products using Jersey milk

7. Continue to utilize and analyze the FARM-Environmental Stewardship program as a tool to demonstrate the sustainability advantage of Jerseys

8. Develop economic analyses that promote increased use of Jersey genetics

9. Look for and advance market arrangements, voluntary and regulated, that obtain or improve Multiple Component Pricing (MCP) for producers not currently receiving MCP or receiving sub-standard MCP

 

Greg Lavan, manager of Jersey Marketing Service reported on the year-to-date activity. He updated board members on the fall and winter sale lineup, including the Celebration of Brentwood Sale to be held in mid-December.

Next Annual Membership Meeting
The AJCA-NAJ Annual Meetings will be held June 21-24, 2023, at the Stoney Creek Hotel La Crosse–Onalaska, Onalaska, Wis. The National Heifer Sale will be held on June 23 in LaCrosse.

Deadlines for President and Director nomination petitions to be filed with the Executive Secretary are April 20 for AJCA (65 days prior to the Annual Meeting), and April 24 for NAJ (60 days prior).