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From United Press International
EVANSVILLE, Ind., Dec. 27 (UPI) -- With years of low milk prices driving American dairy farmers out of business, the federal government plans to pour billions of dollars into new support programs.
The goal of the Dairy Margin Protection Program -- part of the 2018 farm bill signed into law Dec. 20 -- is to guarantee that farmers earn a certain amount for their milk. If farmers' earnings drop below a minimum threshold, the government will cover the difference.
"The program looks to be very generous," said Andrew Novakovic, a professor of agricultural economics at Cornell University. "The money should help [farmers] keep even with bills and maybe catch up a bit."
This is welcome news to struggling farmers, many of whom have not made any money since milk prices dropped in 2014, Novakovic said.
COMMENT:-
In most of the world payments by a government to a national industry that will enable that industry to sell its products at less than the cost of production are known as "subsidies". Those "subsidies" are almost universally considered as complete legal justification for the imposition of "duties/tariffs" on the product to protect against "dumping".
How this will impact the absolutely massive 0.3% increase in the share of the Canadian milk market that Mr. Trump achieved by his stunningly brilliant negotiations on NAFTA 2.0 is yet to be determined.
Don't bet that the impact will be beneficial to American milk producers.
Farm bill includes billions aimed at keeping dairy industry afloat
EVANSVILLE, Ind., Dec. 27 (UPI) -- With years of low milk prices driving American dairy farmers out of business, the federal government plans to pour billions of dollars into new support programs.
The goal of the Dairy Margin Protection Program -- part of the 2018 farm bill signed into law Dec. 20 -- is to guarantee that farmers earn a certain amount for their milk. If farmers' earnings drop below a minimum threshold, the government will cover the difference.
"The program looks to be very generous," said Andrew Novakovic, a professor of agricultural economics at Cornell University. "The money should help [farmers] keep even with bills and maybe catch up a bit."
This is welcome news to struggling farmers, many of whom have not made any money since milk prices dropped in 2014, Novakovic said.
COMMENT:-
In most of the world payments by a government to a national industry that will enable that industry to sell its products at less than the cost of production are known as "subsidies". Those "subsidies" are almost universally considered as complete legal justification for the imposition of "duties/tariffs" on the product to protect against "dumping".
How this will impact the absolutely massive 0.3% increase in the share of the Canadian milk market that Mr. Trump achieved by his stunningly brilliant negotiations on NAFTA 2.0 is yet to be determined.
Don't bet that the impact will be beneficial to American milk producers.