This reader response was from "Recommendations for USDA's dairy program" in last week's Hoard's Dairyman Intel.

When thinking about the MPP-Dairy (Margin Protection Plan for Dairy) . . . Why can’t there be a margin incentive to respond to the markets correctly by reducing production when there is a surplus. For example, cut back production 5 percent and get $1 higher guaranteed margin ($9). Cut back by 10 percent and get $2 back; 15 percent, $3 back; and cut 20 percent, $4.

I don’t know what the numbers would be; this is just a simple example to keep production in balance with demand.

Pete Juengel, Michigan

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(c) Hoard's Dairyman Intel 2017
March 20, 2017
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