Be Sure to Leave Santa a lot of Milk (and Cookies) and Dairy Farmers will Thank you!

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According to the Business Insider, for years, the US government has supported the dairy industry to encourage production, but the rising costs and falling returns have forced some farmers to ditch cows altogether.

Questions:

  1. What happened to milk prices during the Great Depression?
  2. What did the government do to make sure keep milk prices high after WWII?
  3. Briefly explain what President Reagan did about the government support program for milk in the early 1980s?
  4. In 1993, what was the advertising campaign to promote milk?
  5. Why can’t smaller family farms make a profit? What is the operative number of cows to make a profit?

Source:

Nixdorf, K. and B. Stephanis (2021). The US is producing more milk than ever, even as Americans are drinking less of it. Here’s why. Business Insider, Nov. 4, (Retrievable online at https://www.businessinsider.com/rise-and-fall-of-milk-dairy-industry-2021-11)