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The dairy price support program: a study of misdirected economic incentives



The dairy price support program: a study of misdirected economic incentives



Federal Reserve Bank of St Louis Review 66(2): 5-14



For many years milk prices in the USA have been supported, both directly and indirectly, by a variety of government initiatives, and the dairy price support programme is likely to be the focal point of agricultural policy in 1984. Dramatic rises in cost have made it a target for politicians concerned with budget deficits. Consumers are opposed to it, and livestock producers are concerned about recently proposed changes. The article reviews the history of the mechanics of the programme.

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