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Livestock Gross Margin-Dairy Insurance: An Assessment of Risk Management and Potential Supply Impacts

by Kenneth H. Burdine, Roberto Mosheim, Donald Blayney, and Leigh Maynard

Economic Research Report No. (ERR-163) March 2014

cover image ERR163
Public risk management policies for dairy producers have the potential to induce expansion in milk supplies, which might lower farm-level prices and offset risk-reduction benefits. An evaluation of USDA’s Livestock Gross Margin-Dairy insurance program finds economic downside risk significantly reduced, with potential to induce modest supply expansion if widely adopted.

Keywords: Dairy, gross margins, risk management, LGM Dairy, insurance, milk supplies, livestock

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Last updated: Friday, March 07, 2014

For more information contact: Kenneth H. Burdine, Roberto Mosheim, Donald Blayney, and Leigh Maynard

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