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Location Preference for Risk-Averse Dutch Dairy Farmers Immigrating to the United States

Published online by Cambridge University Press:  28 April 2015

James W. Richardson ,
Brian Herbst ,
Anthony Duncan ,
Mark den Besten  and
Peter van Hoven
James W. Richardson
Affiliation:
Department of Agricultural Economics at Texas A&M University, College Station, TX
Brian Herbst
Affiliation:
Department of Agricultural Economics at Texas A&M University, College Station, TX
Anthony Duncan
Affiliation:
Department of Agricultural Economics at Texas A&M University, College Station, TX
Mark den Besten
Affiliation:
Texas A&M University from Wageningen University, The Netherlands
Peter van Hoven
Affiliation:
Texas A&M University from Wageningen University, The Netherlands
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Abstract

Increased environmental regulations and a milk quota that restricts growth have increased the interest in immigration to the United States by Dutch dairy farmers. A risk-based economic analysis of 23 representative U.S. dairy farms versus a representative Dutch farm shows that risk-averse Dutch dairy farmers would prefer to liquidate their dairy farms and invest in a large dairy in Idaho or north Texas. The risk ranking suggested that continuing to farm in the Netherlands rather than immigrating to the United States is preferred over only two of the 23 U.S. representative farms analyzed.

Keywords

dairy relocationproduction economicsranking risky alternativesrisk analysisF21F22Q12Q14E37D81
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 3 , December 2007 , pp. 735 - 748
Copyright
Copyright © Southern Agricultural Economics Association 2007

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