Is the government presently subsidizing milk production?
Dairy farmers do not receive direct market price adjustment payments or deficiency payments as are currently paid to some crop farmers. However, they do receive a form of subsidy to the extent that there are a number of provisions within U.S. federal agricultural policy that place a lower limit on market prices for milk or encourage large crop production which lowers market feed prices. These are indirect subsidies to dairy farmers. Also in 1999, 2000, and 2001, dairy farmers received emergency Dairy Market Loss Assistance payments to offset the negative impacts of adverse weather and market conditions. The primary form of government involvement at the farm level is the price support program. This program is designed to place a floor under the milk price by authorizing the Secretary of Agriculture, through the CCC, to purchase cheddar cheese, butter, or nonfat dry milk powder for the purpose of supporting the milk price received by dairy farms. The CCC does not purchase milk directly b
