Document Type

Article

Journal/Book Title/Conference

Economic Research Institute Study paper

Volume

84

Issue

6

Publisher

Utah State University

Publication Date

2-1-1984

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

15

Abstract

A number of dairy producers in Utah and probably elsewhere denounced the milk tax last summer as being counterproductive. The claim (usually made by small producers) was that financial obligations of providing for debt service and family living dictated that they must increase production if price fell. Discussions with a number of producers about the Dairy Diversion Program indicates that many who chose not to sign up did so after some analysis. They made the nonparticipation choice because they determined (rightly or wrongly) that their volume of business during the life of the program and thereafter would not provide them with sufficient income. They reasoned that with prices as they are now and with probable decreases after the end of the program that they would not be able to meet financial obligations. They, therefore, have chosen to maintain or expand herd size and production.

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