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In Wisconsin, industrial dairy farms are growing. An informational website that covers food, innovative products, books, culture, education, travel, and life experiences. hosted a 2017 fundraiser on a retired aircraft carrier, Dairy farmers are in crisis — and it could change Wisconsin forever, A nonprofit that's supposed to promote dairy pays its leaders millions — while the farmers who fund it are going out of business. At current prices, dairy producers pay 80 cents per-$100 sold into the checkoff program. All told, the Dairy Management board consists of 81 people appointed by the U.S. secretary of agriculture or named by regional bodies that receive checkoff dollars. The IRS Form 990 also reports Dairy Management paid for first class travel, health or social club dues or initiation fees, and tax indemnification and gross up payments. Chapter seven: In Wisconsin, industrial dairy farms are growing. He praised the work of Dairy Management. Dairy Management Inc (DMI) is the big organization that most people haven’t heard of because unless you’re a dairy farmer, work in the dairy industry, or work in the corporate offices of Pizza Hut, Taco Bell, or KFC, you would have no reason to know that this non-profit, tax-exempt 501 (c) (6) is the most powerful non-profit dairy organization in the country. In the eight-year period that began in 2010, Gallagher's average annual pay was $976,744, a Journal Sentinel review found. Public relations spending: From 2013 to 2017, Dairy Management has paid nearly $55 million to the world's largest independent PR firm, Daniel J. Edelman Inc., for "agency services." Read the IRS instructions for 990 forms.. "I need to rely on the trickledown.". She was paid nearly $1.2 million. I didn’t ask for the job.". Marilyn Hershey, chair of the Dairy Management board, defended the work of the nonprofit in a statement to the Journal Sentinel. So are concerns about them. A free inside look at Dairy Management salary trends based on 21 salaries wages for 14 jobs at Dairy Management. His pay was eclipsed by Gregory Miller, an executive vice president whose pay package was valued at $1.5 million, and Carolyn Gibbs, the chief financial officer who left the organization in July 2017. Of that, more than $420 million — 47% — came from dairy producers. Eby, of the National Dairy Producers group, argued small farms would benefit more from promotion of liquid milk, since they get more money for that than milk used in cheese or turned into powder and shipped overseas. The average salary for "dairy management inc." ranges from approximately $11.60 per hour for Crew Member to $12.79 per hour for Stocking Associate. The two men who led the beef group were paid an average of $523,327. Former U.S. Secretary of Agriculture Thomas Vilsack, the group's executive vice president, was paid $800,557 in 2017. Among the ties between the two entities: Oldani, who is a Dairy Management executive vice president, left a similar post at Edelman to join the nonprofit in 2017. As illustrated above, Dairy Management spends $46 out of every $100 in revenue on domestic marketing. The IRS Form 990 is an annual information return that most organizations claiming federal tax-exempt status must file yearly. ", In the 1980s, when the checkoff program started, he said, farmers "didn’t realize the money was going to be spent to promote a kind of agriculture that was going to end up driving the independent producers out of business.". Top executives can receive "health club benefits under the executive flexible benefits account," according to documents filed by Dairy Management with the IRS. $23 out of every $100 in revenue is spent on compensation for the 281 employees. With milk prices sagging for the fifth straight year, the percentage of farms shutting down — especially small, family operations — is higher than at any time since the Great Depression. His compensation included access to first-class travel and money to cover part of his taxes. It's not the dollar amount that is bothering the farmers, Ikerd said. Thus, dairy farmers continue to be squeezed. Wisconsin helped dairy products go global. To do this, dairy farmers pay 15 cents (and dairy importers pay 7.5 cents) for every 100 pounds of milk (a gallon of milk weighs 8.6-11.6 pounds so 100 pounds of milk is roughly 10 gallons, meaning US dairy farmers pay Dairy Management about 1.5 cents per gallon for their services). Frazier's predecessor, Forest Roberts, collected $712,199 the previous year. tion to find one of dairy’s fattest, cream-sucking, overpaid critters. The checkoff payments from dairy, pork and beef producers are each calculated differently. Tax Filings by Year. "What's wrong with promoting milk?" In 2017, the website Politico reported the USDA had gone at least four years without filing a required financial report to Congress about the dairy program. $19 a Month to St. Jude's: How Much Goes to the Kids, Executive Compensation at St. Jude's (2018), Executive Compensation at the World Wildlife Fund, Executive Compensation at the National Pork Producers Council, Executive Compensation at Sentara Hospitals, Executive Compensation at Sentara Healthcare, Executive Compensation at Roper St. Francis Healthcare, Executive Compensation at the Metropolitan Museum of Art, $73 million (46% of revenue): Domestic Marketing, $37 million (23% of revenue): Compensation, United Dairy Industry Association, a 51 (c) (6) whose control and management delegated to Dairy Management, National Dairy Council, a 501 (c) (3) controlled by United Dairy Industry Association, Innovation Center for US Dairy, a 501 (c) (6) controlled by Dairy Management, Dairy Research Institute, a 501 (c) (3) controlled by Dairy Management, Youth Improved, Inc., a 501 (c) (3) controlled by Dairy Management, $15.1 million: Daniel J Edelman, Inc. of Chicago, Illinois for “agency services” (public relations/marketing company), $ 5.4 million: NFL Properties LLC of New York, New York for promotion, $ 4.0 million: MMS Education of Newtown, Pennsylvania for “agency services” (education marketing company), $ 3.2 million: NTT Data, Inc. of Boston, MA for IT services, $ 1.6 million: Information Resource Inc of Chicago, Illinois for “agency services” (market research company). Salary information comes from 145,082 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months. Huge factory farms are more apt to work with the processors whose product ends up with national brands and franchises, Lloyd said. ", Critics of the agriculture checkoff programs focus on its mandatory nature, limited transparency and the lack of input from frontline farmers. Chapter five: Robotic milking in Canada, struggling farmers in Mexico: How Wisconsin’s trading partners are weathering the dairy crisis, Chapter six: Wisconsin's dairy industry would collapse without the work of Latino immigrants — many of them undocumented. Find out what works well at Dairy Management Inc from the people who know best. Now that is hitting home amid farm closings. What's more, Gallagher's pay greatly exceeded that of the heads of other nonprofits funded by a checkoff program. Executive Compensation at Feeding America. In an interview, he did not endorse or criticize the pay packages for Dairy Management executives. "The dairy industry came to me and offered me the job — I didn’t seek the job. Gallagher's pay package was more than double the median paid to CEOs at large nonprofits in 2015 and 2016, according to Candid, formerly known as GuideStar, a group that analyzes nonprofits. "The NFL doesn't need my money," she said. Can the dairy industry keep up? he asked. In 2017, a year in which 503 dairy farms closed in Wisconsin and 1,600 were shuttered nationwide, IRS records show 10 executives at the organization were paid more than $8 million — an average of more than $800,000 each. The idea is that by banding together, farmers — including many small, family-run operations — will get more for their marketing buck. Unless you’re a dairy farmer or work in the dairy industry, you may never have heard of Dairy Management, Inc. – a 501 (c) (6) – whose tax-exempt status as a “business league” is one of the most powerful dairy organizations in the country.