Monday, January 31, 2011


Today, USDA release its Ag Prices report available at:

USDA estimated the "All Milk" price at $16.20/cwt. USDA also states the parity price would have been $44/cwt (that is at over 90% parity, which never happened). Nevertheless, there ha been a lot of money going into the middle since Reagan signed the bill eliminating parity milk pricing.

A thorough examination of where the money went would be useful in many ways. Is the entire system efficient, or is it just capturing a benefit of a form of servatude?

For those who are interested, the above link has a great deal of information on parity and how it is calculated.

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