TY - RPRT AB - Congress reorganized dairy policy in the Agricultural Act of 2014 when it eliminated three programs and created the Dairy Margin Protection Program. The new program aims to provide farmers with financial protection against risks from increasing vola - tility in milk and feed prices. These developments occurred amid ongoing structural change toward larger dairy farms, as well as ongoing change in dairy product demand, away from fluid milk, and toward manufactured products sold in domestic and export markets. This report focuses on the interrelated topics of structural change in dairy production, changes in dairy product markets, growing price volatility, and dairy policy. It details the major developments in each, traces the linkages among them, and identifies the challenges that structural change, evolving product markets, and price volatility pose for policy. ----- Errata On May 17, the following corrections were made to ERR-205, Changing Structure, Financial Risks, and Government Policy for the U.S. Dairy Industry . Three cells in Table 3 were updated as follows: “Western States, 3,000-3,999 head in 1992" (19), “Traditional States, 1,000-1,999 head in 1997" (54), and “Other States, 1,000-1,999 head in 2002" (56). On page 10, the State in which Shamrock Farms is located was corrected. In addition, Appendix table A-2 was updated to reflect return-on-equity calculations for the full rather than a restricted sample of dairy farms. AU - MacDonald, James M. AU - Cessna, Jerry AU - Mosheim, Roberto DA - 2016-03-01 DA - 2016 DO - 10.22004/ag.econ.262200 DO - doi ID - 262200 KW - Agricultural and Food Policy KW - Industrial Organization KW - Livestock Production/Industries KW - Farm structure KW - Margin Protection Program KW - dairy policy KW - dairy trade KW - ARMS KW - dairy farm finances KW - milk prices KW - dairy exports KW - dairy structure L1 - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf L1 - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf?subformat=pdfa L2 - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf L2 - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf?subformat=pdfa L4 - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf L4 - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf?subformat=pdfa LA - eng LA - English LK - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf LK - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf?subformat=pdfa N2 - Congress reorganized dairy policy in the Agricultural Act of 2014 when it eliminated three programs and created the Dairy Margin Protection Program. The new program aims to provide farmers with financial protection against risks from increasing vola - tility in milk and feed prices. These developments occurred amid ongoing structural change toward larger dairy farms, as well as ongoing change in dairy product demand, away from fluid milk, and toward manufactured products sold in domestic and export markets. This report focuses on the interrelated topics of structural change in dairy production, changes in dairy product markets, growing price volatility, and dairy policy. It details the major developments in each, traces the linkages among them, and identifies the challenges that structural change, evolving product markets, and price volatility pose for policy. ----- Errata On May 17, the following corrections were made to ERR-205, Changing Structure, Financial Risks, and Government Policy for the U.S. Dairy Industry . Three cells in Table 3 were updated as follows: “Western States, 3,000-3,999 head in 1992" (19), “Traditional States, 1,000-1,999 head in 1997" (54), and “Other States, 1,000-1,999 head in 2002" (56). On page 10, the State in which Shamrock Farms is located was corrected. In addition, Appendix table A-2 was updated to reflect return-on-equity calculations for the full rather than a restricted sample of dairy farms. PY - 2016-03-01 PY - 2016 T1 - Changing Structure, Financial Risks, and Government Policy for the U.S. Dairy Industry TI - Changing Structure, Financial Risks, and Government Policy for the U.S. Dairy Industry UR - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf UR - https://ageconsearch.umn.edu/record/262200/files/56833_err205_errata.pdf?subformat=pdfa Y1 - 2016-03-01 T2 - Economic Research Report Number 205 ER -