Saturday, March 2, 2019

It's Time To Let the Free Market Dictate Dairy Production: New at Reason

By Reason Staff - March 02, 2019 at 08:30AM

This week Dean Foods, the nation's largest dairy, reported steep quarterly losses. The Wall Street Journal notes the company is trying to sell its "struggling business" even as its share price sinks and the company cancels contracts with dairy farmers thanks to poor demand and a glut of dairy products.

It's not just Dean Foods that's listing. Dairy farmers around the country are in the same leaky boat. Many people agree that dairy farming in America has reached a crisis stage. How'd it get there?

A closer look at the problem reveals that decades of meddling in the market by the U.S. Department of Agriculture (at the behest of Congress) is likely responsible for the scope of today's crisis. While the USDA works really hard to make the dairy industry thrive, writes Baylen Linnekin, the agency's actions ensure just the opposite.

View this article.

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