Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-08T13:37:46.329Z Has data issue: false hasContentIssue false
  • English
  • Français

Recent Changes in the Regional Structure of U.S. Dairy Production

Published online by Cambridge University Press:  10 May 2017

Birgit Huy ,
Joachim G. Elferich  and
Conrado M. Gempesaw II
Birgit Huy
Affiliation:
Department of Food and Resource Economics, University of Delaware
Joachim G. Elferich
Affiliation:
Department of Food and Resource Economics, University of Delaware
Conrado M. Gempesaw II
Affiliation:
Department of Food and Resource Economics, University of Delaware
Get access

Abstract

Gauging the impact of recent policy changes, this article analyzes production characteristics and the impact of the dairy assessment for northeastern dairy farmers as compared to other major production regions. Employing a restricted translog variable profit function, returns to size, shadow prices, supply elasticities for milk and livestock as well as demand elasticities for concentrate were estimated. Northeastern, just as midwestern farmers, were less responsive in milk supply and concentrate demand, more responsive in livestock production, and less efficient than their California and Texas counterparts. The dairy assessment affected profits of northeastern farmers later than those of other regions. Negative shadow prices indicated overinvestment into fixed factors.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 17 , Issue 1 , April 1988 , pp. 36 - 45
Copyright
Copyright © 1988 Northeastern Agricultural and Resource Economics Association 

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.)

Footnotes

The authors acknowledge the helpful comments of the editor and two anonymous reviewers.

References

Barten, A. P. “Maximum Likelihood Estimation of a Complete System of Demand Equations.” European Economic Review. 1 (1969:7–73.Google Scholar
Beattie, B. and Taylor, C. R. The Economics of Production. New York: J. Wiley and Sons, 1985.Google Scholar
Buxton, Boyd M. Factors Affecting U.S. Milk Production. Ag. Economic Report No. 527, ERS-USDA, 1985.Google Scholar
Buxton, Boyd, et al. Technology, Public Policy, and the Changing Structure of American Agriculture. Congress of the United States of America. Office of Technology Assessment. Volume 2—Background Papers Part B: Economics and Policy Analysis, Paper 7, May 1986.Google Scholar
Chavaz, Jean-Paul and Klemme, R. M. “Aggregate Milk Supply Response and Investment Behavior on U.S. Dairy Farms.” American Journal of Agricultural Economics, 68 (1986):55–66.Google Scholar
Cilley, G. Bradley and Blakley, Leo V., “Regional Price Elasticities of Milk Supply in the United States.“ Paper presented at the 1985 Meeting of the Northeastern Agricultural and Resource Economics Association, Amherst, Massachusetts.Google Scholar
Christensen, L. R., Jorgensen, D. W., and Lau, L. J. “Trancendental Logarithmic Production Frontiers.” Review of Economics and Statistics. 55 (1973):28–45.Google Scholar
Dahlgran, Roger A. “A Synthesis of Microeconomic Duality Theory and Distributed Lag Modeling with Implications for U.S. Dairy Policy.” North Central Journal of Agricultural Economics, 7 (1985):132–144.Google Scholar
Elterich, G. Joachim, and Masud, Sharif. “A Distributed Lag Model of Milk Supply Response for Delaware.” University of Delaware, Agr. Exp. Stat. Bulletin 425, 1978.Google Scholar
Grisley, W. and Gitu, K., “The Production Structure of Pennsylvania Dairy Farms.” Northeastern Journal of Agricultural and Resource Economics, 13 (1984):245–253.Google Scholar
Hallberg, M. C. and Fallert, R. F. Policy Simulation Model for the United States Dairy Industry. Pennsylvania State University, Agr. Exp. Sta. Bulletin 805 (Jan. 1976).Google Scholar
Halter, A. N., Carter, H. O. and Hocking, J. G. “A Note on the Transcendental Production Function.” Journal of Farm Economics, 38 (1957):966.Google Scholar
Hammond, Jerome W. Regional Milk Supply Analysis. Department of Agriculture and Applied Economics. Staff Paper 74-12, St. Paul: University of Minnesota, July 1974.Google Scholar
Hoque, A. and Adelaja, A. “Factor Demand and Returns to Scale in Milk Production: Effects of Price, Substitution, and Technology.” Northeastern Journal of Agricultural and Resource Economics, 13 (1984):238–244.Google Scholar
Huy, Birgit. Unpublished , Department of Food and Resource Economics, University of Delaware. December 1986.Google Scholar
Madden, J. P. Economies of Size in Farming. AER-107. U.S. Department of Agriculture, ERS, 1967.Google Scholar
McFadden, D., “Cost, Revenue, and Profit Functions,” in: Fuss, M. and McFadden, D. (eds.), Production Economics: A Dual Approach to Theory and Applications Vol. I, North Holland, 1978.Google Scholar
Spaulding, B. W. and Daniels, L. B., “Estimated Returns, Costs, and Net Income to Dairy Producers in Northwest Arkansas, 1980.” Arkansas Farm Research, Ark. Expt. St., 29(5), (Sep/Oct. 1980):5 ff.Google Scholar
Stefanou, S. and Madden, J. P. “Economies of Size Revisited.” Journal of Agricultural Economics 39 (1988):125–132.Google Scholar