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Policy Options for Managing Risk in a Modern Dairy Economy

Newton, John C
http://rave.ohiolink.edu/etdc/view?acc_num=osu1385134137

Abstract Details

2013, Doctor of Philosophy, Ohio State University, Agricultural, Environmental and Developmental Economics.
Milk markets are considered inherently unstable for several reasons: perishability of the raw product, continuous production, and seasonal changes in supply and demand. As a result a variety of government programs work to address potential market failures in milk production and pricing. Among the policy initiatives are Federal Milk Marketing Orders (FMMOS) and commodity specific price support programs. FMMOS employ a classified pricing system based on the end use of milk and a revenue blending program to announce and enforce minimum farm payments. Price supports and counter-cyclical payment program provides milk price support when milk prices of specific commodities fall below specified thresholds. Designed for an environment with stable milk and feed prices these programs are now viewed to be inadequate as they fail to address the industry need to manage price volatility. Private market solutions do exist, such as commercially traded futures contracts, but contract design specifications and capital commitments (margin accounts) make these risk management alternatives less than ideal. Policy solutions in the dairy industry include addressing and potentially limiting the role of FMMOS in milk pricing, and providing subsidized risk management tools. The potential for significant changes in the marketing and pricing of milk exists and it is useful to consider policy options for managing risk in a modern dairy economy. In order to contribute to this discussion the dissertation is comprised of three research manuscripts addressing the role of the government in facilitating or designing cost-effective risk management platforms.
Camerson Thraen, S (Advisor)
Stan Thompson (Committee Member)
Brent Sohngen (Committee Member)
127 p.
Agricultural Economics
dairy, risk management, farm bill, margin insurance, fluid milk

Recommended Citations

Citations

  • Newton, J. C. (2013). Policy Options for Managing Risk in a Modern Dairy Economy [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1385134137

    APA Style (7th edition)

  • Newton, John. Policy Options for Managing Risk in a Modern Dairy Economy. 2013. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1385134137.

    MLA Style (8th edition)

  • Newton, John. "Policy Options for Managing Risk in a Modern Dairy Economy." Doctoral dissertation, Ohio State University, 2013. http://rave.ohiolink.edu/etdc/view?acc_num=osu1385134137

    Chicago Manual of Style (17th edition)

osu1385134137
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© 2013, all rights reserved.
This open access ETD is published by The Ohio State University and OhioLINK.