IDFA: Other commodities more volatile
While dairy volatility is often cited as a problem for dairy producers, the International Dairy Foods Association (IDFA) said things aren't as bad as some other agricultural enterprises. Citing a recent study by the Illinois Farm Bureau Farm Management Association and the Department of Agricultural and Consumer Economics at the University of Illinois, IDFA chief economist Bob Yonkers dairy farm income was the least volatile when compared to grain, hog or beef farms. The study compares Illinois accrual net farm income by farm type between 1993-2012. Since none of the other farm types in the study have a government program to control the supply of those commodities, Yonkers said the study bolsters IDFA’s argument that margin insurance – without supply management – is a valuable policy tool that will help dairy farmers deal with price and income volatility.