[Buckeye McFrog]

Wood said he’s currently selling milk for less than it costs him to produce it — around $20 per hundred pounds...

Then he will stop producing, as presumably he does not want to lose two dollars per hundred pounds. The supplies will diminish, prices will rise, and the problem will take care of itself.

[HiTech RedNeck]

I’m curious what subsidies do to the picture. If you don’t keep it up, you lose your subsidy for the next year?

[Bloody Sam Roberts]

Then he will stop producing,

He doesn't produce milk. Cows do. And you just can't stop milking them without severe consequences. So shutting off the 'spigot' and cutting production isn't as easy as it sounds.

[kara37]

Then he will stop producing, as presumably he does not want to lose two dollars per hundred pounds. The supplies will diminish, prices will rise, and the problem will take care of itself.
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You can’t just stop producing. Cows need to be milked 2 times a a day. It would take a lot more money to feed cows that produce nothing.
Of course, you could always sell off some cows, or butcher them. However, then you would have to spend a lot more time and money in the long run when the price picks up.