Does the Dairy Price Support Program Still Work

After watching the support price increase rapidly during the 1970's, plateau at $13.10 during the early 1980s, then gradually decrease to $11.35 on January 1 of 1987, many are beginning to wonder whether the price support program still works, particularly in view of the fact that while the support price has fallen in recent years, there has still been a tendency for milk production to continue to increase (Figure 1).