The Impact of the National Counter-Cyclical Income Support Program for Dairy Producers on Representative Dairy Farms

This report contains the results of an analysis of the National Counter-Cyclical Income Support Program for Dairy Producers on the Agricultural and Food Policy Center’s (AFPC) representative dairy farms. The impact of the proposal on the representative farms is evaluated in terms of the change in average annual cash receipts and the change in the average annual net cash farm income. The role and potential importance of payment limits on these farms are discussed. All milk prices by state and program benefits under the payment limit binding and nonbinding scenarios were developed by FAPRI and were applied to the representative dairies. For more information on those results see the FAPRI analysis of this program.Agribusiness, Agricultural and Food Policy, Livestock Production/Industries,

A Brief Summary of U.S. Farm Program Provisions

This brief publication began as a need for a short summary of farm programs and farm bills for two agricultural economics courses focusing on agricultural policy -- ag. economics 429, and ag. economics 614. It became clear that many students taking these courses had less and less background in agriculture and less (even cursory) knowledge of policies than those of the recent past. After this list was developed a number of other professional agricultural economists found copies and began to use it, hence its publication in a more structured form. The list of Farm Program Provisions is not all-inclusive. It certainly does not contain all the laws and provisions that have affected agriculture over the years. However, it is an easy reference to farm bills and provisions since 1933. We intend to update this list as time goes on to continue its usefulness to professionals and students alike.Agricultural and Food Policy,

The Impact of Land Fragmentation on Beef Cattle Inventory

Many groups have discussed with alarm the impact of agricultural land conversion to non-agricultural uses. This research indicates little evidence that beef cow inventory has been negatively affected by land fragmentation. Average acres per transaction, total transactions, or a fragmentation index did not have an important effect on cattle inventory.Land Economics/Use, Livestock Production/Industries,

Financial Impacts of Regional Differences in Dairies

The sensitivity of net cash farm income to changes in selected production variables, output prices, and input costs varies significantly across representative U.S. dairies. Different regions of the country were impacted differently by changes to production and prices.Agricultural Finance, Q12, Q14,

Regional and Structural Impacts of Alternative Dairy Policy Options

Milk and dairy product prices have fallen to their lowest levels in 3 years following the record highs of 2004 and 2005. The large government stockpiles of non-fat dry milk are gone, but threaten to build again as non-fat dry milk and cheese prices decline nearer the support price level. A new farm bill is scheduled to be written in 2007. The Milk Income Loss Contract (MILC) program included in the last farm bill was only authorized through September 2005. Subsequent legislation reinstated the MILC program through August 2007. WTO negotiations are on-going and could influence U.S. farm programs 1/. Dairy’s role in the U.S. amber box limit of $19.1 billion may necessitate some possible trade-offs with other commodities. Dairy counts about$4.2 billion toward the annual amber box limit, but actual spending only averages about $1 billion (Outlaw, et al). The pressure of low prices, WTO negotiations, MILC continuation, and a new farm bill has created the potential for a number of options and alternatives for dairy policy. This paper examines the regional and structural impacts of 3 dairy policy options: MILC continuation, a target price/deficiency payment program, and an increase in the support price. All three options are designed to spend$400 million in amber box payments per year. The analysis uses representative dairy farms in major milk producing regions of the country developed by the AFPC for policy analysis.Agribusiness, Agricultural and Food Policy, Livestock Production/Industries,

Analysis of H.R. 2646 on Land Tenure Arrangements on U.S. Representative and Texas FARM Assistance Farms

This report analyzes whether H.R. 2646 may provide economic incentives for landlords to end current land tenure arrangements with tenants and take over management (and government payments) associated with their land. This work is a followup to Briefing Paper 01-9, Representative Farm Analysis of the H.R. 2646 Farm Bill Proposal that analyzes the impacts of H.R. 2646 on the representative crop farms maintained by the Agricultural and Food Policy Center (AFPC).Agribusiness, Agricultural and Food Policy, Land Economics/Use,

The Effectiveness of Dairy Risk Management at Managing Income, Revenue, and Margin Risk

With the 2009 milk prices still fresh on everyone’s mind, there has been increased interest in ways to limit milk price volatility. Using SERF, this paper determined some dairies are willing to pay for limited milk price volatility and found a value they are willing to pay using risk premiums.Dairy, Stochastic Simulation, price volatility, Agricultural and Food Policy, Farm Management,

Representative Farm Analysis of the S. 1731 Farm Bill Proposal

Agribusiness, Agricultural and Food Policy,

What a Difference a Year Makes in the Dairy Industry

The projections for feed and milk prices have changed over the last year. This study looks at how the changes affect the dairy industry. The high feed prices have been trumped by higher milk prices and the economic viability of the dairy industry has improved across the board.Demand and Price Analysis, Industrial Organization,

Analysis of the Effects of Proposed House and Senate Farm Bills on Rice Returns

This report reflects analysis of projected gross returns under the proposed farm programs – H.R. 2646 the House Bill that passed the House floor on October 5th, the Senate Bill that passed the Senate Agriculture Committee on November 15th and the Cochran/Roberts Bill that was defeated previously in committee.Agricultural and Food Policy,