Some 100 California dairy farmers are shutting their doors this year, according to the Milk Producers Council, a group representing dairy farmers.
Those of you who read this blog know that markets would fix the problem, leading to higher prices which would reduce demand from processors and increase supply from dairies. However, in California, they are using regulators, courts, and the legislature, rather than markets, to set prices:
Last week, four groups representing dairy farmers ... filed a lawsuit in August against Karen Ross, the secretary of the California Department of Food and Agriculture, which sets the price that cheese makers pay for milk.
But dont worry, help is on the way. Last month, Ms. Ross "assembled a task force of producers and processors to study the issue."
I eagerly await their report.