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Assessing Participation in the Milk Income Loss Contract Program and its Impact on Milk Production

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  • D'Antoni, Jeremy M.
  • Mishra, Ashok K.
Abstract
The MILC program, a counter-cyclical income support program, was designed to provide price support to dairy farmers. Since the inception of the MILC program it has been argued that the program is inefficient and rewards inefficiency by keeping high cost, small dairy farms in business. Large dairy producers have expressed concerns that the MILC payments have negatively affected their farming income. Using farm-level, ARMS data from 2005, this study investigated the factors that affect farmer’s decision to participate in MILC program and if participation in MILC has an impact on milk production. The results show that participation in MILC program is positively correlated with farmer’s educational attainment, organic certification subsidy, milk price, off-farm work by spouses, and financial record keeping. Further, medium sized dairy farms are more likely to participate in MILC program. Finally, results indicate that participation in MILC program has a positive impact on milk production.

Suggested Citation

  • D'Antoni, Jeremy M. & Mishra, Ashok K., 2011. "Assessing Participation in the Milk Income Loss Contract Program and its Impact on Milk Production," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103775, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103775
    DOI: 10.22004/ag.econ.103775
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    Cited by:

    1. Zhang, Jun & Yen, Steven T., 2017. "Supplemental Nutrition Assistance Program and food insecurity among families with children," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 52-64.
    2. Moturi, Walter & Obare, Gideon & Kahi, Alexander, 2015. "Milk Marketing Channel Choices for Enhanced Competitiveness in The Kenya Dairy Supply Chain: A multinomial Logit Approach," 2015 Conference, August 9-14, 2015, Milan, Italy 212477, International Association of Agricultural Economists.
    3. Colin Busby & Daniel Schwanen, 2013. "Putting the Market Back in Dairy Marketing," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 374, March.
    4. Lee, Yu Na & Chau, Nancy & Just, David R., 2019. "Producer group participation in the trade adjustment assistance program for farmers before and after the American Recovery and Reinvestment Act of 2009," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    5. Newton, John & Thraen, Cameron S. & Bozic, Marin, 2013. "Whither Dairy Policy? Evaluating Expected Government Outlays and Distributional Impacts of Alternative 2013 Farm Bill Dairy Title Proposals," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 153750, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Agricultural and Food Policy; Livestock Production/Industries;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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