Member Benefits
First and foremost, CDI’s member-owners benefit from our best-in-class team of talented Field Representatives. Your local Field Representative is available to assist, whether that involves troubleshooting milk quality issues or helping members access other available services or opportunities.In addition, CDI has lauched CDI MEMBER EDGE, a revamped member benefits program designed to increase on-farm profitability by leveraging the size and scope of your cooperative.
Benefit Resources
Online Store
Now you can show your CDI pride everywhere you go. The CDI Online Store has a wide variety of branded apparel and promotional items for everyone in the family. Products include polo shirts, dress shirts, outerwear, youth items, headwear and accessories like backpacks and coffee mugs.
Shop Online
Dairy-RP / CDI Insurance Services
In February 2020, CDI and HighGround Dairy announced the creation of CDI Insurance Services, a co-owned insurance agency focused on providing Dairy-Revenue Protection coverage under the Federal crop insurance program.
Interested in learning more about CDI Insurance Services / Dairy-RP?
HighGround Dairy’s team of agents are available to answer all your questions!
You can reach them at: DRP@HighGroundDairy.com
Curtis Bosma: (559) 623-4172 (call or text anytime)
Austin Benthem: (312) 636-4526 (call or text anytime)
Quick form to schedule a one-on-one consultation
CDI Member Risk Management
Dairy farmers face many evolving challenges operating a dairy in today’s environment. However, one of those challenges remains constant – not knowing what the milk price will be or where it is going. The month-to-month fluctuation of the milk price can and has created significant stress on the farm.
There are a growing number of tools available to dairy farmers to mitigate this month-to-month milk price volatility, and CDI has taken steps to make those tools available and convenient for our members. Currently, those tools include:
- Dairy Margin Coverage (DMC) through USDA
- Dairy Revenue Protections (Dairy-RP) through CDI insurance services
- Forward Contracting Program through Blimling and Associates or through Rice Dairy/Wells Fargo
As you will read below, these options are not part of an “either/or” strategy, but rather an “and” strategy.
EVERY MEMBER should be enrolling in Dairy Margin Coverage for their base level of risk management protection.
For members interested in purchasing further protection, the Dairy-Revenue Protection program is the FIRST OPTION you should be looking at, due to it’s heavily subsidized premium cost.
For members looking to supplement their DMC and Dairy-RP coverage, CDI has forward contracting programs with both Blimling and Rice Dairy/Wells Fargo that provide advantages to similar offerings in the open market.
Dairy Margin Coverage through USDA:
The 2018 U.S. Farm Bill created the Dairy Margin Coverage (DMC) program, which provides direct payments to dairy farmers when the margin between the U.S. All-Milk Price and a calculated U.S. Average Feed Cost falls below pre-set levels.Dairies need to enroll in the DMC at their local Farm Service Agency (FSA) office. Available coverage ranges from: (1) a free option that generates a payment when the monthly margin drops below $4.00 per cwt; to (2) the most expensive option that generates a payment when the monthly margin drops below $9.50 per cwt; and (3) a number of options in between.
The program has two tiers: (1) “Tier 1” that applies to the first five million pounds of a dairy’s “Annual Production History”; and (2) “Tier 2” that applies to a dairies “Annual Production History” above five million pounds. (A facility’s “Annual Production History” is its highest milk production in 2011, 2012 and 2013, with newer dairies calculating their history using other methods; your FSA office can assist you in determining your dairy’s “Annual Production History” for the DMC). As you can see in the table below, the premium due for coverage in Tier 1 is significantly less for all coverage levels above $5.00 per cwt.
So what does this mean for my dairy?
First off, all dairies should enroll in the DMC at some level and for both Tier 1 and Tier 2, even if only at the free $4.00 per cwt level.
Second, all dairies should seriously consider enrolling in the maximum coverage of $9.50 per cwt for their “Tier 1” production history. In 2019, for a dairy with more than five million pounds of Annual Production History (nearly all of our member dairies), enrolling in the maximum $9.50 coverage for Tier 1 would cost $7,500 ($0.15 per cwt x five million pounds of Annual Production History) and would have resulted in more than $26,000 in indemnity payments (netting more than $18,000).
Members looking for more information on the DMC can contact either your local FSA office or your CDI field representative who can help get you the answers you are looking for.
Dairy-Revenue Protection through CDI Insurance Services
In February 2020, CDI and Highground Dairy announced the creation of CDI Insurance Services, a co-owned insurance agency focused on providing Dairy-Revenue Protection coverage under the Federal crop insurance program.
Dairy-Revenue Protection, or Dairy-RP, is relatively new, having launched in late 2018. Simply put, it is a crop insurance program that allows participating dairies to establish minimum revenue guarantees for up to the next five quarters, based on futures prices at the time of purchase.
The benefits of utilizing the Dairy-RP program include:
- The premiums paid by participating dairies are subsidized by up to 44 percent by the Federal government- Premiums are not due until the completion of the quarter covered (example, coverage purchased for the third quarter ending September 30 is not due until October)
- There is no size limits built into the program
- dairies can cover their full production without any limits based on “Annual Production History” or arbitrary caps
We have created a web page specifically designed to provide information on CDI Insurance Services and the Dairy-RP program, so please visit that page for more information.
Forward Contracting Program through Blimling and Associates or through Rice Dairy/Wells Fargo
While the DMC and Dairy-RP programs provide the best 1-2 punch for initiating a dairy’s risk management strategy, some farms are already going a step further, utilizing more traditional futures/options tools. To that end, CDI has teamed up with both Blimling and Associates and Rice Dairy/Wells Fargo to provide “forward contracting programs” for our members.
What are the benefits of participating in one of CDI’s member forward contracting programs?
- A team of industry experts are dedicated to working with CDI’s members to craft a strategy that makes the most sense for your farm
- There are no up-front premium costs or mid-contract margin calls under CDI’s member forward contracting programs; all premiums and settlements are handled at the end of the contracted month
- Contracts can be settled through your milk check payment.
Blimling & Associates
CDI has worked with Blimling and Associates for a number of years to provide a member forward contracting program. Through this program, CDI is able to offer a number of forward contracts based on Federal Order Class III and Class IV milk futures and options, as well as contracts based on cheddar cheese, butter or nonfat dry milk prices. The available contracts include:
- Class III/IV Forward Sale Fixed Price Contract
- Class III/IV Minimum Price Contract
- Class III/IV Minimum/Maximum Price Contract
- Cheddar Cheese/Butter/Nonfat Dry Milk Forward Sale Fixed Price Contract
- Cheddar Cheese/Butter/Nonfat Dry Milk Minimum Price Contract
- Cheddar Cheese/Butter/Nonfat Dry Milk Minimum/Maximum Price Contract
Rice Dairy / Wells Fargo
In 2019, CDI launched an additional Member Forward Contracting Program with Rice Dairy / Wells Fargo. While operating very similar to our original Member Forward Contracting Program, there are a couple differences that led CDI to add this program to our Member Benefits package:
- Extends the cash-flow advantages (no up-front premiums or margin calls) to members who are working with Rice Dairy
- A different structure that allows participating dairies to have flexibility similar to the open market, including the ability to offset existing forward contracts prior to expiration while maintaining the ability to re-establish forward contracts at a later date.
Group Health Insurance
CDI has engaged in a strategic alliance with Western Growers Insurance Services (WGIS) to provide new, highly competitive options for CDI member-owners to secure health benefit services.
Exclusively available to CDI member-owners, these new health benefits options are structured with a range of coverage levels to choose from, allowing you to customize health benefits to your organization’s needs. Whether you have already purchased group health insurance or are considering health benefits as an employee recruitment and retention tool, this new CDI/WGIS offering is certainly an option worth exploring.In addition to highly competitive pricing, these new benefits also come with exceptional local support through the network of WGIS health benefit specialists, located right here in California. As an organization focused on working with farmers throughout the Western United States, the team of WGIS specialists understand the issues facing California dairy families. They will work with you to explore the best opportunity for your dairy operation.Interested in exploring this opportunity? Click on the link above to get connected with your local WGIS representative. They can provide a detailed proposal customized for your needs.
Leadership Program
The CDI Leadership Program is designed to equip CDI members with the relevant intellectual tools to create effective members of any dairy related organization. The program is presented from a cooperative’s point of view in general and from a CDI point of view in particular. In addition, members will become well-versed in what CDI does, how it operates and will become familiar with the basics of milk marketing, milk pricing, milk pooling and dairy policy. This program will not only enhance members’ knowledge base, but will enable members to better serve as future committee members, industry representatives and board members.
Program Details:
- Sessions will be held at CDI headquarters in Visalia with offsite sessions being held at additional CDI plants.
- Participants will be required to provide their own transportation to class location(s)
- Class size will be limited to no more than 10 CDI member-owners
- Enrollment in the program is free of charge
- The program will convene for three, two-day sessions, over the course of fourmonths. Meeting days are consecutive and will require an overnight stay by participants.
- CDI will host a dinner each session that all participants are required to attend
- Food and lodging will be provided to participants
- Group and/or individual homework assignments are included in the program
- Sessions will be taught by experts in their chosen field and will include both CDI staff and non-staff
Selection Process:
- Applicant must be a CDI member or be a family member actively involved in the dairy of a CDI member-owner
- All applicants must completely fill out an application
- Participants are expected to attend all sessions and dinners
- Equal or fair representation from each CDI district will be a priority when selecting participants
- If you have questions or need additional information, please contact Stacy Heaton at (559) 623-6977 or at sheaton@californiadairies.com
Halcyon EAP Assistance
Life on the dairy farm poses unique challenges. Economic pressure, labor issues, and balancing home and work can be overwhelming, even more so in an industry that is non-stop. CDI recognizes life’s everyday struggles and provides a service to assist members when these instances arise.
Halcyon EAP is a CDI-sponsored, confidential professional counseling and financial resource service that provides support and information for personal and work-related concerns. This service is part of CDI’s Employee Assistance Program (EAP) benefits package and is a no-cost, full-service benefit available to the member-owners of CDI.At some point in our lives, we will face a problem or situation that is difficult to resolve. Halcyon EAP provides professional counseling, referrals, and up to three face-to-face counseling session per presenting issue for a wide array of personal and work-related concerns. This service covers issues such as stress, family and relationships, work-life balance and substance abuse.
Halcyon EAP is available 24 hours a day, seven days a week, by calling 888-425-4800. The toll-free line is answered by counseling professionals who can assist you with a personal dilemma and can guide you to in-person care with an expert in your area. Halcyon EAP is designed to provide support for you and your family, such as short-term counseling and professional referrals for life’s everyday problems.
The Halcyon EAP website, ww.halcyoneap.com, is your single source for expert information and valuable resources on a variety of subjects. With legal documents, financial calculators, mindfulness tools, health assessment and on-demand educational modules, this website will help be your best at home and at work. The eConnect® telehealth platform, available on the Halcyon EAP website, also provides secure video and web chat access to licensed Halcyon EAP counselors.
You can login into the website using this login username: cadairies
During these tough and troubling economic times, CDI would like to remind its member-owners that if you begin to feel overwhelmed or need someone to talk to, the Halcyon EAP is available for this purpose.
Halcyon EAP is available 24 hours a day, seven days a week at 888-425-4800. The service is strictly confidential, as mandated by law.
Additional resources on stress and depression:
Discount Purchasing
California Dairies, Inc. (CDI) is a part owner of QCS Purchasing, LLC and utilizes QCS to supply many of the products and services used in our processing plants. Now CDI members can take advantage of our bulk buying power to leverage on-farm purchasing discounts.
Click here to connect with QCS for purchasing discount opportunities Download
QCS Purchasing is a not-for-profit buying group that purchases in excess of $650 million per year. QCS is able to leverage this spend to get attractive pricing with suppliers on many products and services used by our California Producers.
Products available for purchase under the QCS buying group include General Motors vehicles, Firestone auto products and Grainger and Nelson Jameson supplies.
How do you sign up?
Simply send your contact information along with your CDI member ID # to Laura@QCSPurchasing.com. Laura can then provide more information on any given program, explain the benefits and get you signed up if desired.
As a CDI member, there is no cost to join any QCS program and all participation is voluntary.
CDI Member Advocacy: Political Action Committee
A Federal Political Action Committee (PAC) is a business tool that companies and trade associations can effectively use to help advance its policy views with elected officials in Washington, DC.
The CDI Political Action Committee (PAC) works to build, educate and maintain relationships with both current and incoming legislators. Since 1999, the CDI PAC has worked to protect and improve the California dairy industry and the landscape in which it operates. In its present form, CDI’s Federal PAC has existed for approximately 10 years. During this time, CDI has grown its Federal PAC substantially – CDI now has the largest PAC in the dairy industry and the sixth largest PAC in the agriculture sector.
CDI’s Federal PAC has outperformed the vast majority of business PACs over the past several years. With the help of CDI’s PAC, several U.S. Senators and U.S. Representatives have been elected or re-elected. CDI’s support of these elected officials has afforded greater access to them in advancing positions that are important to CDI and its members.The CDI Federal PACs support of federal officeholders and candidates has allowed for many opportunities to have these individuals visit CDI facilities and engage in meaningful discussions on the most important issues facing the dairy industry. Over the past few years several U.S. Senators and Senate candidates have visited the Visalia office and toured CDI facilities, including both the Chairman and Ranking Minority Member of the Senate Agriculture Committee during consideration of the 2008 Farm Bill. In 2010, CDI had several U.S. Representatives and candidates for the U.S. Senate and U.S. House visit Visalia, including the Chairman of the House Agriculture Committee.
There is no existing dairy producer organization operating in Washington D.C. that can adequately represent CDI’s interests before Congress. With the pending consideration of a new Farm Bill this year, and many other issues before Congress that impact CDI and its members, having a strong and effective PAC is becoming more and more important to the success of CDI and its members. The 2012 elections will be key to the future of this country and the future of production agriculture.
CDI members are encouraged to consider participating in CDI’s Federal PAC by joining it as a contributor. At this critical point in time, with discussions going forward in Washington on U.S. farm policy, trade policy, and the impact of federal regulations on farm income, CDI members are needed to join the efforts and help grow the CDI PAC.
To become a member of the CDI PAC, please complete the PAC signup form and authorize a $0.005 per cwt. deduction from your monthly settlement statement (e.g., 6,000 gallon/day dairy = $75/month deduction). For additional information, please contact Darrin Monteiro, Vice President of Sustainability and Member Relations: dmonteiro@californiadairies.com or (559) 625.6141
On-Farm Security Consulting
California Dairies, Inc. (CDI) has teamed up with Pipkin Detective Agency, an industry leader in on-farm security consulting, to assist our member-owners with evaluating and enhancing the security of their farms.
Click here to connect with Pipkin Detective Agency for your no-cost consultation Download
The team at Pipkin Detective agency is trained to assess your facility and operations and provide CDI’s members with preventative measures aimed at mitigating the risk of potential litigation. Key areas of focus include:
- Dairy Security and Consulting
- Business Liability Insurance
- Animal Rights Infiltration Avoidance
- Threat Assessment and Management
- Hostile Terminations and Walk Off Service
- Video Surveillance
- Background Investigations on Potential Hires
- Embezzlement Investigations
- Hostile Work Environment
- Sexual and Racial Harassment
Milk Quality Program
Milk Sample Designations:
There are three designations used to identify milk samples collected for bacteria testing:
- Weekly samples, which are used to determine eligibility for milk quality bonuses and penalties
- Daily samples, which are follow-up samples triggered by a high weekly sample and are used for individual producer information
- Special samples, which are requested by the member or CDI staff and also are used for individual producer informationPlease note: Daily and Special sample results are not used for bonus or penalty calculations.
Minimum Standards for Milk Quality Bonus Payments:
The laboratory will be directed to test samples from each dairy on a random basis corresponding to each of the four pay periods during a month (1st day through the 7th day; 8th day through the 15th day; 16th day through the 23nd day; 24th day through end of the month).Weekly bacteria counts are averaged for the entire month and for each pay period. The results are compared to the established standards to qualify members for the bonus program. Whichever calculation (monthly or by pay period) that results in the highest payout to the member will be used.The goal of the testing protocol is to test one sample for each significant lot of milk produced during each of the four pay periods. However, because of the logistical complexities involving trucking companies, courier services and laboratory personnel, the goal may not always be achieved. Therefore, the program administrator is allowed to determine the proper number of samples to be tested during each period such that it is consistent with the intent of the milk quality program. The results of the calculations are published shortly after the end of the month to allow for all relevant producer information to be collected and analyzed.An antibiotic incident and/or two milk temperature violations (over 45° at time of pickup) during the month will disqualify a member from receiving a milk quality bonus for that month.
Minimum Standards for Raw Milk Quality:
Member farms producing milk that exceeds these levels for three consecutive weeks are penalized $.10/cwt for milk produced during the second and third consecutive week. Only the milk for which the established standards are exceeded is debited.
Special Penalty Program Standards:
Members with on-going milk quality problems may be placed on a special penalty program by their district quality committees. Members on special penalty will receive daily milk quality testing and will receive penalties when those tests indicate milk produced exceeds the maximums established above. The level of the penalty will be determined by the milk quality committee representing that member’s district.
Members on special penalty may have their membership terminated by the CDI Board of Directors upon recommendation of the district quality committee if any 6 months of a 12-month period do not meet an established standard. The established standard is 80% of milk samples tested per month must meet CDI’s standards (see section 3 above) as well as meet the State of California standards for Grade A milk.
Milk samples that do not meet these standards are shown in red on CDI’s Milk Monitor website or printed in red on postcards that are sent to the dairy. If more than 20% of pickups tested within a calendar month exceed this standard, this will count as one of the six qualifying months to be considered for termination proceedings.
Bacteria history will be evaluated on a monthly basis by the quality committee and evaluated on a 12-month moving window. If any 6 months out of a 12-month period exceed the standards listed above, the district milk quality committee will recommend termination of membership to the Board of Directors at their earliest meeting following this determination.
Regulatory and Temperature Degrades:
When dairy facilities or milk does not meet the California Grade ‘A’ standards and is degraded to Grade ‘B’ status, the milk from these operations must be handled differently. Fortunately for our members, CDI is in a unique position to be able to process Grade ‘B’ milk as needed from our member facilities whereas our competition does not economically do so. Unfortunately, the value of products made from this milk is reduced. To offset those price differences there is a minimal fee to provide this service to our members.
Members on degrade for any reason will incur the following costs:
- For the first seven consecutive days, degraded milk will receive the Federal Milk Marketing Order Class IV price, minus a $0.50 handling fee.
- For the eighth day on regulatory degrade and onward, degraded milk will receive the Federal Milk Marketing Order Class IV price, minus a $2.00 handling fee.
Any extraordinary transportation costs incurred as the result of the degrade will be the responsibility of the member.
CAT National Account Program
Cintas Uniforms