Could DMSP accelerate IOFC margin recovery? Can it really be enforced? Are subsidies on margin insurance program too high? What to do about it? John Newton and I presented new research results at the National Workshop for Dairy Economists and Policy Analysts in Boston yesterday. In a nutshell, we churned numbers and found that a 6-month gap between margin insurance annual decision and start of the coverage period (March –> October) can preserve flexibility of margin insurance (i.e. annual choice), low and affordable premiums, yet it would remove the incentive to ‘game the system’ thus reducing the chances that new federal dairy policy could eventually result in milk oversupply.

Marin’s slides and audio.

John’s slides.

 

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