Livestock Gross Margin-Dairy Insurance: An Assessment of Risk Management and Potential Supply Impacts (Paperback) (ISBN-13: 9781505399455)

Public risk management policies for dairy producers have the potential to induce expan-sion in milk supplies, which might lower farm-level prices and offset risk-reduction benefits. An evaluation of USDA's Livestock Gross Margin-Dairy (LGM-Dairy) insur-ance program finds economic downside risk significantly reduced, with potential to induce modest supply expansion (0 to 3 percent) if widely adopted. Supply impacts are likely limited due to relatively low participation levels and a minimal ("inelastic") supply response to risk. LGM-Dairy is more flexible and convenient than other risk management tools, such as hedging directly in futures or options markets, especially for small farms.

Author: United States Department of Agriculture
ISBN-10: 1505399459
ISBN-13: 9781505399455
Publisher: Createspace Independent Publishing Platform
Language: English
Published: 12/06/2014
Pages: 30
Format: Paperback
Weight: 0.21lbs
Size: 11.02h x 8.50w x 0.06d