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.To comment, email your remarks to intel@hoards.com.
(c) Hoard's Dairyman Intel 2017
March 20, 2017
Pete Juengel, Michigan
(c) Hoard's Dairyman Intel 2017
March 20, 2017