American Journal of Agricultural Economics · 1992 · 14 citations · 2 references
Dairy Termination ProgramApplied EconomicsAgricultural EconomicsMilk Diversion ProgramPolicy AnalysisResource EconomicsFood MarketingEconomic Policy AnalysisEconomic AnalysisDairy ProgramsFood PolicyEconomic Impact AnalysisFood DistributionPublic PolicyEconomicsAnimal Health EconomicsLower Support PricesAgricultural HistoryEconomic PolicyPublic EconomicsFarm ManagementBusiness
Abstract Excessive government purchases of dairy surpluses during the early 1980s prompted three corrective measures: the Milk Diversion Program, Dairy Termination Program, and lower support prices. An eight‐equation econometric model of the dairy sector simulates these programs and shows them to be incomplete or impermanent in their effects. However, further analysis shows that a more aggressive policy of lower support prices would be effective in reducing costs to government and consumers, and lowering transfers to producers.
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