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Dairy price policy - boon for revenue, bane for water

When the COVID-19 pandemic caused milk prices to drop, dairy farmers were struggling. A proposed policy that would have set a minimum price for milk was not passed, but a study by Penn State found that if it had been, farmers could have gotten a 10% price increase. 

This study focused on animal farming near the Chesapeake Bay area. It found that the dairy industry might grow by 13%. However, with more animals, there's more waste that can pollute the water. This could increase nitrogen but decrease phosphorus in the water. 

A point emphasized by David Abler, a leading agricultural economist, is the two-sided nature of such policies. Previous decisions, like the 2018 Farm Bill, sometimes brought unexpected challenges. 

Model simulations highlighted that livestock farmers in the study regions could experience a revenue bump between 2% to 10%. Regional variances would determine whether farmers transition from sectors like beef or poultry to dairy. 

This study shows the challenge of balancing costs, making products, and taking care of the environment. Future investigations might shed light on other intersections, such as greenhouse emissions or the impact on crops. 

Source : wisconsinagconnection

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