Hostname: page-component-586b7cd67f-gb8f7 Total loading time: 0 Render date: 2024-11-28T10:27:18.321Z Has data issue: false hasContentIssue false
  • English
  • Français

Dairy Farm Size, Entry, and Exit in a Declining Production Region

Published online by Cambridge University Press:  28 April 2015

Noro C. Rahelizatovo  and
Jeffrey M. Gillespie
Noro C. Rahelizatovo
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University Agricultural Center, Baton Rouge, Louisiana 70803
Jeffrey M. Gillespie
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University Agricultural Center, Baton Rouge, Louisiana 70803
Get access Rights & Permissions [Opens in a new window]

Abstract

As with most agricultural industries, the U.S. dairy industry has evolved into a structure including fewer yet larger firms. In Louisiana, total milk production has declined along with dairy farm numbers since 1972. This study addresses the impact of alternative policies, macroeconomic factors, and technology on the structure of the Louisiana dairy industry using a micro-data non-stationary Markov chain analysis. Results indicate that a number of factors have affected the structure of the industry in Louisiana, including but not limited to prices, milk supply reduction programs, technology and interest rates.

Keywords

dairy farmsMarkov chain analysisseemingly unrelated regression
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 31 , Issue 2 , August 1999 , pp. 333 - 347
Copyright
Copyright © Southern Agricultural Economics Association 1999

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adelman, I.G. “A Stochastic Analysis of the Size Distribution of Firms.” Journal of American Statisticians Association 53 (Dec, 1958):893–804.CrossRefGoogle Scholar
Barten, A. P. “Maximum Likelihood Estimation of A Complete System of Demand Equations.” European Economic Review (Fall 1969): 7–73.Google Scholar
Board of Governors of the Federal Reserve System. Federal Reserve Bulletin, Vols 66–82. Washington, DCGoogle Scholar
Boehlje, Michael. “Alternative Models of Structural Change in Agriculture and Related Industries.” Agribusiness 8:3(1992):219–231.3.0.CO;2-T>CrossRefGoogle Scholar
Boucher, R.W. and Gillespie, J.M.. “Projected Costs and Returns for Beef Cattle, Dairy Production, Swine Production and Forage Crops in Louisiana, 1997.” AEA Information Series No.150, Department of Agricultural Economics and Agribusiness, Louisiana State University Agriculture Center, January 1997.Google Scholar
Carley, D. H. “Policies Affecting Southern Dairy Farmers.” Southern Cooperative Service Bulletin No. 375, The Georgia Agriculture Experiment Station, College of Agriculture and Environmental Sciences, The University of Georgia, May 1993.Google Scholar
Chatzopoulou, S. “Structural Changes in the Greek Dairy Industry, 1972–1992.” Master of Science thesis. University of Saskatchewan, Saskatoon, Canada. August, 1995.Google Scholar
Chavas, J-P. and Magand, G.. “A Dynamic analysis of the Size Distribution of Firms: The Case of the U.S. Dairy. Industry.” Agribusiness 4:4(July 1988):315–330.3.0.CO;2-2>CrossRefGoogle Scholar
Disney, W.T., Duffy, P.A., and Hardy, W.E. Jr. “A Markov Chain Analysis of Pork Farm Size Distributions in the South.” Southern Journal of Agricultural Economics 20(December 1988): 57–64.Google Scholar
Economic Report of the President. Washington, D.C: US Gov Printing Office, 1994, 1996.Google Scholar
Fielder, L.L. Jr. and Nelson, B.A.. Agricultural Statistics and Prices for Louisiana, 1979–84. Louisiana State University Agriculture Center, Department of Agricultural Economics and Agribusiness, DAE Research Report No 641. August 1985.Google Scholar
Fielder, L.L. Jr., Kelly, S.S., and Nelson, B.A.. Agricultural Statistics and Prices for Louisiana, 1909–85. Louisiana State University Agriculture Center, Department of Agricultural Economics and Agribusiness, DAE Research Report No 659. September 1986.Google Scholar
“FAPRI September 1998 Baseline”, FAPRI–UMC #23-98, Food and Agricultural Policy Research Institute, http://www.fapri.missouri.edu, University of Missouri, 1998.Google Scholar
Gilmour, James M. “External Economies of Scale, Inter-Industrial Linkages and Decision Making in Manufacturing.” In Spatial Perspectives on Industrial Organization and Decision-Making. Hamilton, F.E.I., Editor, John Wiley and Sons, New York, 1974.Google Scholar
Hallberg, M.C. “Projecting the Size Distribution of Agricultural Firms—An Application of a Markov Process with Non-Stationary Transition Probabilities.” American Journal of Agricultural Economics 51 (May 1969):289–202.CrossRefGoogle Scholar
Klemme, R.M. “Estimating and Interpreting Dairy Production Costs and Cash Flow Requirements.” Economic Issues. Department of Agricultural Economics, University of Wisconsin College of Agriculture and Life Sciences, No. 82, November 1983.Google Scholar
Louisiana State Department of Health and Human Resources, Office of Health Services and Environmental Quality. Reports of the Milk and Dairy Division 1981–1995.Google Scholar
Reimund, D.A., Martin, J.R., and Moore, C.V.. “Structural Change in Agriculture: The Experience for Broilers, Fed Cattle, and Processing Vegetables.” Washington, DC: U.S. Department of Agriculture, Economics, and Statistics Service Technical Bulletin No. 1648, April 1981.Google Scholar
Stavins, R.N. and Stanton, B.F.. Using Markov Models to Predict the Size Distribution of Dairy Farms, New York State, 1968–1985. Ithaca, NY: Cornell University, Department of Agricultural Economics. December 1980Google Scholar
U.S. Department of Agriculture, Economic Research Service. Dairy Outlook. Supplement to Livestock, Dairy, and Poultry Situation and Outlook. LDP-D-13. Washington, DC, U.S. Government Printing Office, December 1996.Google Scholar
U.S. Department of Agriculture, National Agriculture Statistics Service. Agricultural Prices. Washington, DC, U.S. Government Printing Office, issues from 1981–1998.Google Scholar
Von Massow, M., Weersink, A., and Turvey, C.G.. “Dynamics of Structural Change in the Ontario Hog Industry.” Canadian Journal of Agricultural Economics 40(March 1992):93–107.CrossRefGoogle Scholar
Williams, D.C. and Alexander, W.H.. A Stochastic Analysis of Size Distribution of Firms in Fluid Milk Markets in Louisiana. Louisiana State University, Agriculture Experiment Station, Department of Agricultural Economics and Agribusiness Bulletin No 578. December 1963.Google Scholar
Zapata, H.O., Kelly, S.S., and Nelson, B.A.. Agricultural Statistics and Prices for Louisiana, 1981–1986. Louisiana State University Agricultural Center, Department of Agricultural Economics and Agribusiness. AEA Information Series No 57. November 1986.Google Scholar
Zapata, H.O. and Frank, D.. Agricultural Statistics and Prices for Louisiana, 1983–1989. Louisiana State University Agricultural Center, Department of Agricultural Economics and Agribusiness, AEA Information Series No. 86. October 1990.Google Scholar
Zapata, H.O. and Frank, D.. Agricultural Statistics and Prices for Louisiana, 1988–1994. Louisiana State University Agricultural Center, Department of Agricultural Economics and Agribusiness, AEA Information Series No. 134 Oct 1995.Google Scholar
Zepeda, L. “Asymmetry and Nonstationarity in the Farm Size Distribution of Wisconsin Milk Producers: An Aggregate Analysis.” American Journal of Agricultural Economics 77:4(November 1995):837–852.CrossRefGoogle Scholar