Press Releases
Release Date:
December 18, 2002
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  Contact:Christopher Galen
Phone:(703) 243-6111
email:CGalen@nmpf.org
           
New EPA Environmental Rules To Cost Dairy Industry $150 Million
USDA, New Farm Bill Programs To Help Farmers Comply With New Regulations
ARLINGTON, VA – The federal government this week unveiled its long-awaited regulations adding new environmental compliance requirements for dairy farmers and other livestock producers. The National Milk Producers Federation said the regulations will increase the cost of business by millions of dollars for affected producers, but are not as burdensome as had initially been proposed.
     
On Monday, the Environmental Protection Agency (EPA) unveiled its final rule on concentrated animal feeding operations (CAFOs), which for dairy farms, includes all those with a herd size of 700 or more. Because of the complexity of the new rule, some dairy farms smaller than 700 cows in environmentally-sensitive regions will also be designated as CAFOs, and thus will have to acquire permits under the Clean Water Act, develop nutrient management plans, improve record-keeping and monitoring, and enhance nutrient handling activities. Producers that must obtain permits will have to apply for them under the National Pollution Discharge Elimination System (NPDES) program. These permits will require various management activities and possible investments on the producer's behalf to acquire and maintain the permit, according to NMPF. States and other permitting authorities will be required to modify their water regulatory program to be consistent with this rulemaking.
     
Under existing federal regulations, dairy CAFOs are already required to maintain permits. However, this new regulation will expand the number of producers required to have permits by removing an exclusion from extreme storm events. The EPA estimates that 3,400 U.S. dairy farms will be affected by this rule: 1,500 that meet the size criterion of 700+ cows, and another 1,900 smaller farms that are in geographic areas requiring more stringent regulation. Additionally, the rule updates effluent limitation guidelines for all existing and new permit holders.
     
“These new standards will increased the economic and regulatory burden on the dairy industry and reduce the ability of some producers to stay in business,” said Jerry Kozak, President and CEO of NMPF. He said that the EPA's own estimates for this regulation are that it will cost dairy producers more than $150 million annually. A majority of the costs will be for nutrient planning, facility upgrades, land application, and technology improvements, as well as for acquiring permits.
     
“Many dairy producers have been doing significant work to reduce their farms' environmental impact. Regrettably, this rule will add increased costs to producers at a time of dismally low milk prices,” Kozak said. “However, this final regulation is not as problematic as the initial draft of the CAFO regulation, so we are relieved that the EPA and USDA have mitigated some of the more onerous approaches they were first pursuing.”
     
Kozak said one important NMPF priority addressed during the public comment process was the involvement of the USDA's Natural Resources Conservation Service and the use of their expertise in nutrient planning. By having the USDA at the table during the rulemaking process, “the EPA did not have to reinvent nutrient management planning, producers can continue to work from NRCS field guidance, and this will make it easier for producers to be eligible for Farm Bill and other conservation programs,” he said.
     
Kozak said that “NMPF worked very diligently during the rulemaking process with the EPA, USDA, and Congress to develop more reasonable regulations and provide needed financial resources. The increased funding for the enhanced EQIP program, the Wetlands Reserve Program, and other programs will be of great assistance as producers struggle with these new regulations.”
     
NMPF recently released its Dairy Environmental Handbook: Best Management Practices for Dairy Producers. This joint USDA-NMPF best management practices guide is a comprehensive handbook that NMPF is making available to dairy producers free of charge. To obtain a copy of the Dairy Environmental Handbook: Best Management Practices for Dairy Producers, please call (703) 243-6111.