Sunday, February 14, 2010

A Return to Supply Management

Actually not a return for dairy, because dairy has never had a mandatory supply management program, but a return for agriculture generally, because tobacco and peanuts did have such programs. There seems to be some support for instituting one, based on this Agweb post:
Maddox supports the Holstein association’s proposed supply management plan, known as the Dairy Price Stabilization Program. The plan calls for a national, mandatory program that sets a base for milk production and assesses producers a fee if they exceed it.
I don't recall, but I think other countries have had such plans.  And it might be bureaucratically possible.  The key to supply management is to have complete reports of product flow from the farm to the next step, such as the tobacco warehouse. Is it likely?  It would need legislation. And my gut answer is: "no", but we'll see.

No comments: