Sunday, February 07, 2010

Dairy Program Faces Revision

The Dairy Talk on Agweb Blogs includes a post covering possible changes in the dairy program, ideas of the head of the National Milk Producers Federation. Some points:

  • going to an insurance program covering--return over feed cost.
  • current price supports effectively put a floor under world-wide dairy prices. 
  • the voluntary reduction program under Cooperatives Working Together needs help--too many free riders.
There's a bunch of comments.  Mine is similar problems were faced in the programs for grains and cotton. People thought other countries were free riding on our efforts to adjust production.  And long ago, in the days of the Hoover administration, efforts to talk farmers into reducing production without government payments or coercion fell flat on their face.

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