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Recommended Policies for a Sound Dairy Program

Division of Economics, National Milk Producers Federation, Washington, D. C.

ABSTRACT

In any discussion of policies for a sound dairy program three important considerations must be kept in mind.

1. The dairy industry is an integral part of American agriculture, and the economic position of dairy farmers cannot be long maintained at a level far different from that of other farmers.

2. The dairy industry, although vitally affected by foreign trade, is primarily a domestic industry.

3. The dairy industry has many unique problems which require specialized consideration of dairy farmers themselves.

A broad look at all agriculture is helpful in any discussion of problems facing dairy farmers. It doesn't take much of a crystal ball to lead one to the conclusion that all is not well in agriculture and that some policy changes are in order—if the family farm is to remain a cornerstone of American democracy.

Net cash farm income in 1955 dropped 38% from 1948, and 32% from 1951.