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The effects of federal milk orders on the economic performance of U.S. milk markets

, : The effects of federal milk orders on the economic performance of U.S. milk markets. American journal of agricultural economics 61(2): 213-227

Class I price differentials maintained by the U.S. Department of Agriculture and producers during 1965-75 generated Grade A milk supplies in excess of fluid needs and reserves for the federal order system. As required by specified norms, USDA has adopted federal milk order provisions which reduce pronounced seasonality of milk production and lessen certain types of erratic and extreme price variation. If federal milk orders were eliminated and cooperatives and state agencies were barred from replacing the orders, then fluid milk markets characterized by lower Class I differentials, greater milk price variability, and smaller Grade A milk surpluses might emerge.


DOI: 10.2307/1239726

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