The Effects of the Margin Protection Program for Dairy Producers

Economic Research Report No. (ERR-214) 38 pp, September 2016

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by Tyler B. Mark, Kenneth H. Burdine, Jerry Cessna, and Erik Dohlman

The Margin Protection Program for Dairy Producers offers protection when the difference between the U.S. all-milk price and the estimated average feed cost falls below an elected level. The program's potential impacts on average margins and risk at different levels of coverage for both the protected margin ($4-$8 per cwt) and the share of production covered (25-90%) are estimated for 13 regions.

Keywords: Dairy, dairy policy, margin protection program, risk management, LGM–Dairy, insurance, MPP-Dairy

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