With the 2009 milk prices still fresh on everyone’s mind, there has been increased interest in ways to limit milk price volatility. Using SERF, this paper determined some dairies are willing to pay for limited milk price volatility and found a value they are willing to pay using risk premiums.

We estimate a production function for U.S. dairy farming to examine the productivity of organic and non-organic dairy production by system and size. Across organic/non-organic systems and size classes, size is the major determinant of competitiveness based on various measures of productivity and...