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Abstract

Four alternative Class I price structures are examined for the U.S. dairy industry: (1) continuing current programs and policy, (2) increasing Class I differentials 45 cents in all regions, (3) decreasing Class I differentials 75 cents in all regions, and (4) eliminating minimum Class I differentials. The estimated impact of these policies is shown on the Minnesota-Wisconsin (M-W) price (the basic determinant of all prices) regional and aggregate farm prices and income; milk production; fluid milk and manufactured dairy product prices; and industry structure.

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