4 ms·
And don't we have price floors for milk in the US? In a free market the price would just keep dropping, which can't happen here, so you just get a glut.
by Matticus_Rex 8y ago
And don't we have price floors for milk in the US? In a free market the price would just keep dropping, which can't happen here, so you just get a glut.
- mynegation 8y agoDo you? Article says that subsidies to milk farmers are virtually non-existent these days and they dump the excess milk.
- setr 8y agoAt some point, the cost to package & bring the milk to the store will exceed the price of selling the milk, so you’ll hit a price floor regardless. And it becomes the same issue: you now can’t sell the excess milk but you still have all the production facilities. So you store it in your buffer and hold onto production, and eventually if you end up overflowing the buffer, you’ll have no choice but to drop production (which is expensive to bring back up, so highly avoidable)
- sciurus 8y agoIt seems that we don't currently have a milk price floor in the US, although farmers are lobbying for one. https://www.usatoday.com/story/money/business/2018/05/01/americas-dairyland-reels-low-milk-prices-destroy-family-farms/569277002/ https://www.usatoday.com/story/money/business/2018/05/01/ame...
- tedunangst 8y agoNeither that article nor this one seem to even mention existing policies? https://www.ers.usda.gov/topics/animal-products/dairy/policy.aspx https://www.ers.usda.gov/topics/animal-products/dairy/policy...