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Impacts of the Northeast Interstate Dairy Compact on New England Milk Supply

Published online by Cambridge University Press:  15 September 2016

Charles F. Nicholson ,
Budy Resosudarmo  and
Rick Wackernagel
Charles F. Nicholson
Affiliation:
Department of Applied Economics and Management at Cornell University
Budy Resosudarmo
Affiliation:
Department of Economics at the University of Indonesia
Rick Wackernagel
Affiliation:
Department of Applied Economics at the University of Vermont
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Abstract

A two-equation random coefficients model and two estimates of milk prices in the absence of the Northeast Interstate Dairy Compact (Compact) are used to estimate the impact of minimum price regulation for fluid milk products on milk production in the New England states. Estimated responses to price enhancement differed by state for cow numbers, but parameters for milk per cow were not significantly different among states. The amount of increase in milk production attributed to the Compact is estimated at 45 million pounds (about 1% of production) during the first year of minimum price regulation, primarily due to increased milk per cow.

Type
Impacts of the Northeast Dairy Compact
Information
Agricultural and Resource Economics Review , Volume 30 , Issue 1 , April 2001 , pp. 93 - 103
Copyright
Copyright © 2001 Northeastern Agricultural and Resource Economics Association 

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