So, it looks like the dairy farmer is doing well. This raises an interesting quesiton. Are dairy farmers doing well because of:
a) Government help
b) The fact that their milk is sold by a monopoly
c) Favourable world commodity prices
d) Some mix of all three (note you can give a zero probablity to one of the options when doing this)
I think its mainly c). Now the real issue I’d like us to try and figure out, is whether the government provided a positive role in the current dairy boom. Has the government provided some structural assistance that could not of been provided in the free market?
Personally I doubt it. But if someone can make a convincing argument for it, that would be pretty cool 😉