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New Margin Program Offers Better Protection, Say Economic Professors

Feb 19, 2014

Two economics professors recently published Part III in a series that analyzed the compromise dairy safety net programs now included in the Agriculture Act of 2014, or the Farm Bill.

John Newton, professor at the University of Illinois, and Cam Thraen, professor at Ohio State University, concluded that “dairy producers across the U.S., regardless of location and management style, are better protected against severe downturns in the milk price, rising livestock feed prices or a combination of both” under the new Margin Protection Program, which IDFA endorsed.

The professors warned that “adverse gaming incentives” exist with the program, but they could be mitigated by specifying an earlier sign-up date for coverage decisions. The paper can be found here:      

The rest of the series is available here:

For more information contact, Jerry Slominski, IDFA senior vice president of legislative affairs and economic policy, at jslominski@idfa.org.

 
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