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Abstract

Three trade alternatives are examined for the U.S. dairy industry: (1) a continuation of the existing dairy price support systems and import quotas, (2) free trade in dairy products for all countries, and (3) an open U.S. market with no domestic price supports or import quotas for dairy products. The estimated impact of these policies is shown on: levels of imports into the United States; U.S. milk production, consumption, and prices; net cash income; and number and size of dairy farms and processing plants.

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