Tag Archives: John Newton

The Dairy Safety Net Debate Part III: The Compromise Dairy Safety Net Solution

In our previous farmdoc daily posts "The Dairy Safety Net Debate of 2013: Parts I and II", we offered an independent analysis of the dairy margin protection programs put forth and passed by the U.S. House of Representatives and the U.S. Senate. This research demonstrated that a safety net program encompassing both the milk price and the feed price in the form of an income-over-feed-cost margin would succeed in providing need financial relief to dairy farmers during times of low milk production margins. We also identified and discussed three significant issues: (i) adverse gaming, (ii) functional equity of dairy market stabilization, (iii) and the distribution of program benefits. Continue reading

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The Dairy Safety Net Debate of 2013 Part II: Questions and Answers

In Tuesday’s post we made the argument that an insurance-style target index-deficiency payment program without premium oversight from USDA’s Risk Management Agency may result in farmers using the insurance program strategically to extract subsid… Continue reading

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The Dairy Safety Net Debate of 2013 Part I: Questions and Answers

In a previous farmdoc daily post we suggested that a compromise solution to the ongoing U.S. House and Senate debate over the form and substance of a new dairy safety net is a combination of the current Milk Income Loss Contract (MILC) program, … Continue reading

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The Land of "MILC and Honey"

The hardships experienced across the dairy sector in 2009, where U.S. dairy farmers rapidly liquidated more than 250,000 dairy cows from the national herd, brought about a consensus among dairy industry participants that a new risk management so… Continue reading

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