This decision-scenario case study is designed to be suitable for both online and face-to-face instruction in an undergraduate-level agribusiness, agricultural policy, or business strategy course. The case challenges students to assume the role of decision makers for a struggling family-owned dairy farm to determine whether the farm should scale-up, diversify, or exit the industry. Students will (1) learn about the unique features of the U.S. dairy market and domestic government support policies for dairy farms, (2) understand the challenges facing small family-operated farms, (3) apply strategic management tools to analyze and select the best strategic option to ensure short-term and long-term survival of the farm, and (4) advance critical thinking and decision-making skills. This case study is versatile and can be adapted to a variety of classroom settings. It can also facilitate broader discussions of management decisions facing agricultural businesses operating outside of the dairy industry.

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MacDonald, J.M., J. Law, and R. Mosheim. 2020. Consolidation in US Dairy Farming. Washington DC: U.S. Department of Agriculture, Economic Research Service, EER 274. https://www.ers.usda.gov/webdocs/publications/98901/err-274.pdf?v=9770.7

Noll, R., and R. Litan. 2018. “Extra Milk Exports to Canada under Trump’s Rebranded NAFTA Will Be a Drop in the Bucket.” Washington DC: Brookings Institute. Retrieved from https://www.brookings.edu/blog/up-front/2018/10/08/extra-milk-exports-to-canada-under-trumps-rebranded-nafta-will-be-a-drop-in-the-bucket/

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Shikher, S., M. Torsekar, M. Semanik, and P. Herman. 2019. “U.S.-Mexico-Canada Trade Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors.” Washington DC: United States International Trade Commission, USTC Report 4889. https://www.usitc.gov/publications/332/pub4889.pdf

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U.S. Department of Agriculture, Agricultural Marketing Service. 2021a. Federal Milk Marketing Orders. Washington DC: U.S. Department of Agriculture, Agricultural Marketing Service. Retrieved from https://www.ams.usda.gov/rules-regulations/moa/dairy.

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U.S. Department of Agriculture, Economic Research Service. 2020. Dairy Data. Retrieved from https://www.ers.usda.gov/data-products/dairy-data/

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van Kooten, G.C. 2020. “Reforming Canada’s Dairy Sector: USMCA and the Issue of Compensation.” Applied Economic Perspectives and Policy 42(3):542–558.

Viladomiu, M., Hontecillas, R., and J. Bassaganya-Riera. 2016. “Modulation of Inflammation and Immunity by Dietary Conjugated Linoleic Acid.” European Journal of Pharmacology 785:87–95.