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.