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Dairy Facts 2016

Stabilization Program Would Have Limited Effect, Professors Say

Dec 18, 2013

Two Ohio State University economics professors have suggested a compromise solution to the ongoing debate between the House and the Senate over the dairy title in the new Farm Bill. John Newton and Cam Thraen of the OSU department of Agricultural, Environmental and Development Economics, say combining a modified Milk Income Loss Contract program with a revised margin insurance program would be the best solution.

They also believe that the Dairy Market Stabilization Program (DMSP), approved by the Senate but opposed by the House, would cause implementation inequities, create regional disparities and hurt efficient, well-managed farms the most. They also concluded that producer response to the DMSP would arguably limit its effectiveness and potentially prolong the duration of low margins.  

The new post, “The Dairy Safety Net Debate of 2013 Part I: Questions and Answers,” is a summary of conclusions from the ongoing research program undertaken by the university during the past 18 months.

In Part II, which will be posted on December 19 at, the professors will continue to evaluate the proposed programs and reveal whether there is a better way forward regarding dairy policy.  

For more information, contact Jerry Slominski, IDFA senior vice president of legislative affairs and economic policy, at

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