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I am confused by this statement which appears to be a non sequitur. If it is subsidized then shouldn’t it be artificially inexpensive? Can you clarify?

by voisin 2y ago

pfdietz 2y ago
Milk prices are artificially inflated in the US, by a formula based on the distance from Wisconsin, I believe.
- aziaziazi 2y ago
  How that subsidy work? A. If closer to W: subsidize to lower the price down. Ice cream cheaper in W and at its original price further away B. If further to W: tax to inflate the prices. Ice cream is at its original price in W and more expansive further away I cannot see how you could have subsidies AND inflated prices at the same time. Maybe A and B are used simultaneously? More clarification would be appreciated :)
  - medler 2y ago
    Milk pricing in the US is enormously complicated, but as I understand it, there is effectively a floor on the price of drinkable milk. This keeps some milk producers in business who would otherwise exit the market. As you may know, price floors lead to oversupply, so the government sometimes steps in to buy the excess supply, or will just pay producers to dispose of it. So yes, as counterintuitive as it sounds, milk is both subsidized and sold at inflated prices
    - pfdietz 2y ago
      The US government has an enormous cheese stockpile. https://www.farmlinkproject.org/stories-and-features/cheese-caves-and-food-surpluses-why-the-u-s-government-currently-stores-1-4-billion-lbs-of-cheese https://www.farmlinkproject.org/stories-and-features/cheese-...
      - aziaziazi 2y ago
        Wow crazy indeed. What a waste. > Though demand is declining, production is not. It has risen 13% since 2010. In 2016, the American dairy industry dumped a whopping 43 million gallons of milk > The dairy industry received 43 billion and 36.3 billion dollars in 2016 and 2017, respectively, from the federal government. > It is important that special interests do not acquire billions annually for an industry that knowingly overproduces, not to mention pollutes the environment, in the face of declining consumption
- BenjiWiebe 2y ago
  As a milk producer in Kansas, that would be awesome...
- Ferret7446 2y ago
  That's not what the word "subsidy" means, even if assuming your claim is true.

I am confused by this statement which appears to be a non sequitur. If it is subsidized then shouldn’t it be artificially inexpensive? Can you clarify?

by voisin 2y ago

I am confused by this statement which appears to be a non sequitur. If it is subsidized then shouldn’t it be artificially inexpensive? Can you clarify?

pfdietz 2y ago

Milk prices are artificially inflated in the US, by a formula based on the distance from Wisconsin, I believe.

aziaziazi 2y ago
How that subsidy work? A. If closer to W: subsidize to lower the price down. Ice cream cheaper in W and at its original price further away B. If further to W: tax to inflate the prices. Ice cream is at its original price in W and more expansive further away I cannot see how you could have subsidies AND inflated prices at the same time. Maybe A and B are used simultaneously? More clarification would be appreciated :)
- medler 2y ago
  Milk pricing in the US is enormously complicated, but as I understand it, there is effectively a floor on the price of drinkable milk. This keeps some milk producers in business who would otherwise exit the market. As you may know, price floors lead to oversupply, so the government sometimes steps in to buy the excess supply, or will just pay producers to dispose of it. So yes, as counterintuitive as it sounds, milk is both subsidized and sold at inflated prices
  - pfdietz 2y ago
    The US government has an enormous cheese stockpile. https://www.farmlinkproject.org/stories-and-features/cheese-caves-and-food-surpluses-why-the-u-s-government-currently-stores-1-4-billion-lbs-of-cheese https://www.farmlinkproject.org/stories-and-features/cheese-...
    - aziaziazi 2y ago
      Wow crazy indeed. What a waste. > Though demand is declining, production is not. It has risen 13% since 2010. In 2016, the American dairy industry dumped a whopping 43 million gallons of milk > The dairy industry received 43 billion and 36.3 billion dollars in 2016 and 2017, respectively, from the federal government. > It is important that special interests do not acquire billions annually for an industry that knowingly overproduces, not to mention pollutes the environment, in the face of declining consumption
BenjiWiebe 2y ago
As a milk producer in Kansas, that would be awesome...
Ferret7446 2y ago
That's not what the word "subsidy" means, even if assuming your claim is true.