Livestock Gross Margin-Dairy Insurance

An Assessment of Risk Management and Potential Supply Impacts

By:

United States Department of Agriculture

Format:

Paperback / softback

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Description

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.

Release date NZ

December 9th, 2014

Author

United States Department of Agriculture

Audience

General (US: Trade)

Pages

Dimensions

216x279x2

ISBN-13

9781505433661

Product ID

37716415

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