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Livestock Gross Margin-Dairy Insurance: An Assessment of Risk Management and Potential Supply Impacts

  • by Kenneth H. Burdine, Roberto Mosheim, Donald Blayney and Leigh Maynard
  • 3/3/2014
  • ERR-163

Overview

Public risk management policies for dairy producers have the potential to induce expansion in milk supplies, which might lower farm-level prices and offset risk-reduction benefits. An evaluation of USDA's Livestock Gross Margin-Dairy insurance program finds economic downside risk significantly reduced, with potential to induce modest supply expansion if widely adopted.

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