I’m sorry, what?
Overproduction leading to producer losses *is* standard economics.
Too many car producers then car producers make losses. Too many buggy whip manufacturers then buggy whip manufacturers make losses. Too many newspapers then newspapers make losses.
And yes, too many farmers producing milk means farmers producing milk lose money.
I mean you have tried looking at the standard supply and demand curve introduced around page 3 of the GCSE textbook have you?