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Review Of Existing And Alternative Federal Dairy Programs

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  • Economic Research Service

Abstract

Real milk prices 15-20 percent lower than in 1983 would approximately balance production and consumption under conditions projected for the dairy industry during the remainder of the eighties. Government purchase, storage, and disposal could effectively stabilize prices near this level, but these are wasteful means of raising prices and, thereby, enhancing producers' incomes. Other programs such as direct payments, supply control, and price discrimination can transfer income to farmers at less cost to society in the short run, but can lead to serious inefficiencies over time. Changes in the marketing order program to bring prices charged to processors and paid to producers more in line with the value of the services associated with the milk would contribute to the efficiency of the industry.

Suggested Citation

  • Economic Research Service, 1984. "Review Of Existing And Alternative Federal Dairy Programs," Staff Reports 276844, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:276844
    DOI: 10.22004/ag.econ.276844
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    References listed on IDEAS

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    Cited by:

    1. Nott, Sherrill B. & Hamm, Larry G., 1986. "Quotas for U.S. Dairy Farmers? A Review," Agricultural Economic Report Series 201361, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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