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I think it's the other way around - without the government stabilizing the market with subsidies, dairy would be dirt cheap, then expensive, then cheap, then to
by mullingitover 3y ago
I think it's the other way around - without the government stabilizing the market with subsidies, dairy would be dirt cheap, then expensive, then cheap, then totally unavailable, etc.
Edit/correction: actually, the USDA doesn't operate price floors anymore. "Eventually, the USDA decided it had had enough, ending the price support program in 2014."[1]
[1] https://modernfarmer.com/2022/05/cheese-caves-missouri/ https://modernfarmer.com/2022/05/cheese-caves-missouri/
- zeroonetwothree 3y agoThe market has already come up with a solution for this--futures.
- sokoloff 3y agoThe contract size for milk future is 200K pounds, a little over 23K gallons, or about 500 years of my family's consumption. Futures are not a good answer for my use case as a dairy consumer.
- nayuki 3y agoIt's like you never heard of wholesalers vs. retailers. You're acting like your family has to buy milk by the tankerful or flour by the palletful. More examples from daily life: The electricity market, board lots vs. odd lots in stock trading, fractional shares, restaurant supply stores.