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Effects Of U.S. Dairy Policies On Markets For Milk And Dairy Products

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  • Price, J. Michael

Abstract

This report examines the economic effects of the principal programs authorized under the Farm Security and Rural Investment Act of 2002 that influence the U.S. dairy sector. The analytical results presented in this study were used as input to a broader study mandated by Congress, which required an evaluation of the economic impacts of Federal milk marketing orders, direct payments to producers, price supports, and export programs. This study examines the effects of dairy policies on prices, program payments, and other variables under different scenarios. The results are compared to a baseline set of estimates over the 2002-07 period. The findings show that gross income in the U.S. dairy sector would be $7.2 billion below baseline levels over the course of this period if the programs were discontinued. Over the same period, cumulative Government outlays for these programs would be approximately $5.5 billion below baseline levels.

Suggested Citation

  • Price, J. Michael, 2004. "Effects Of U.S. Dairy Policies On Markets For Milk And Dairy Products," Technical Bulletins 33578, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerstb:33578
    DOI: 10.22004/ag.econ.33578
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    File URL: https://ageconsearch.umn.edu/record/33578/files/tb041910.pdf
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    Citations

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    Cited by:

    1. Herndon, Cary W., Jr. & Davis, Brandon L. & Parkhurst, Gregory M., 2005. "Do MILC Program Payments Affect Milk Supply Response Across Regions of the U.S.?," 2005 Annual meeting, July 24-27, Providence, RI 19438, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Herndon, Cary W., Jr. & Looney, John Mark, Jr., 2008. "Does the MILC program Affect Milk Supply Response in Individual States of the United States?," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6782, Southern Agricultural Economics Association.
    3. John Newton & Cameron S. Thraen & Marin Bozic, 2016. "Evaluating Policy Design Choices for the Margin Protection Program for Dairy Producers: An Expected Indemnity Approach," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(4), pages 712-730.
    4. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    5. Godfrey, E. Bruce & Stockton, Matthew C. & Gray, C. Wilson, 2006. "The Fate Of Federal Milk Marketing Orders: Is Order 135 An Indication Of The Future?," A.E. Research Series 305039, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    6. Newton, John, 2016. "Price Transmission in Global Dairy Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-15, August.

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