I'm a bit sceptical of these ideas--people tried them before the New deal and the "free rider" problem was too big. But it might work for dairy, at least for a while, if coops can control their members.
"The Initiative would have three functions:
- It would set national production levels consistent with national usage
- Each cooperative would be assigned a production base level consistent with their share of national production
- CMI would set target prices at levels that would enable their members to profitably produce milk".
Tuesday, July 28, 2009
Dairy Supply Management Proposal
Sometimes when agricultural surpluses mount, people come up with supply management schemes. That's happening with dairy (which already has a voluntary dairy herd buyout program going), via Agweb: