Farm bill blues: economic studies project low milk prices and cash-flow deficits through 2007. Producers from New York, Wisconsin, Florida and California respond.(2002 farm bill)(services of University of Missouri's Food and Agricultural Policy Research Institute )(Cover Story)

Dairy Today, September, 2002 by Mohr, Paula

Lower milk prices will challenge producers for the duration of the 2002 farm bill, according to an economic analysis by Texas A&M Agricultural and Food Policy Center (AFPC).

The analysis, based on data and projections from the University of Missouri's Food and Agricultural Policy Research Institute (FAPRI), shows that more than half of the representative dairy farms in its study will have a greater than 25% chance of a cash-flow deficit from 2002 to 2007.

Milk prices are projected to remain under $13/cwt. during the life of the national dairy market loss program. The low milk price forecast is a result of both market and government forces at work, says Scott Brown, University of Missouri agricultural economist.

"Direct payments [under the...

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