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Journal of Dairy Science Vol. 71 No. 10 2799-2806
© 1988 by American Dairy Science Association ®
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An Economic Evaluation of the Food Security Act of 1985: The Dairy Title

Harry M. Kaiser, Deborah H. Streeter and Donald J. Liu

Department of Agricultural Economics, Cornell University, Ithaca, NY 14853

ABSTRACT

This article examines the impact of the Food Security Act of 1985 on the nation's milk market. Market equilibrium variables for the duration of the Bill, 1986 through 1990, are simulated based on a previously estimated econometric model of the national dairy sector. Forecasts of cow numbers, production per cow, milk production, milk prices, commercial disappearance, and government removals and costs of the dairy price support program are presented and analyzed. The results provide quantitative evidence of the market impact of the Farm Bill, which should be useful to policy makers and industry leaders in shaping future dairy policies.






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Copyright © 1988 by the American Dairy Science Association ®.