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An Economic Analysis of Selected U. S. Dairy Program Changes

Published online by Cambridge University Press:  28 April 2015

Glen D. Whipple ,
Charles Powe  and
Morgan Gray
Glen D. Whipple
Affiliation:
Division of Agricultural Economics, University of Wyoming, University of Tennessee University of Tennessee
Charles Powe
Affiliation:
Department of Agricultural Economics, Mississippi State University
Morgan Gray
Affiliation:
Department of Agricultural Economics, University of Tennessee
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Abstract

An interregional reactive programming model of the United States dairy industry is used to test the welfare implications of several dairy program changes on milk producers, milk consumers, and taxpayers. The results showed that each of the tested alternatives (price support reduction, price support reduction with frozen minimum Class I price, assessments, and production quotas) could reduce price support expenditures substantially. However, assessments reduced expenditures most effectively in terms of cost to milk producers for the United States generally while price support reduction with frozen minimum Class I price was most efficacious in terms of cost to Southeast producers.

Keywords

dairy policywelfare analysisreactive programming
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 17 , Issue 2 , December 1985 , pp. 181 - 192
Copyright
Copyright © Southern Agricultural Economics Association 1985

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