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Expert Alert

U of M expert available to discuss dairy's role in Farm Bill

November 5, 2013

The House-Senate Farm Bill conference committee met last Wednesday for the first time in an effort to draft a new compromise Farm Bill. The bill sets policy on a wide variety of food and agricultural issues; without a new bill, laws will revert to 1949 policies, which could have a significant effect on price supports for dairy farmers, which in turn could affect how much consumers pay for dairy products.

Marin Bozic, assistant professor of applied economics
Bozic is co-author of a new paper from the University of Minnesota’s Food Policy Research Center that outlines the effects of proposed changes to safety net programs. Both the House and Senate have provisions in their bills that change the ways dairy producers are protected from volatile grain prices that affect their profitability. For example, under current policies, farms with fewer than 100 cows account for about 18 percent of all milk production and receive 42 percent of net payments from the safety net while large producers, who account for about 40 percent of all milk production, receive about 6 percent of payments. Under the proposed new policies, that balance would shift and smaller farms would get between 17 percent and 21 percent of benefits and larger farms would get between 36 and 43 percent of the benefits.

The authors also outline how the costs of the new bill’s dairy policies could rise and how dairy producers might alter their levels of production because of the changed dairy policies.

To view the complete policy paper, please visit
http://www.foodpolicy.umn.edu/policy-summaries-and-analyses/dairy-farm-bill/index.htm

To schedule an interview with Professor Bozic, contact Brooke Dillon in the U of M News Service at 612-624-2801 or bldillon@umn.edu.

Expert Alert is a service provided by the University News Service. Delivered regularly, Expert Alert is designed to connect university experts to today’s breaking news and current events. For an archive and other useful media services, visit www.umn.edu/news. Views expressed by experts do not necessarily represent the views of the University of Minnesota.
 

Tags: College of Food, Agricultural and Natural Resource Sciences

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