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Milk-Hauling Rates: A Self-Imposed Constraint with Differential Effects Upon Large and Small Farms

Published online by Cambridge University Press:  10 May 2017

Edward Karpoff
Affiliation:
Department of Agricultural and Resource Economics at the University of Vermont and USDA's Foreign Agricultural Service
Fred C. Webster
Affiliation:
Department of Agricultural and Resource Economics, University of Vermont
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Abstract

Costs impose restraints upon all activities. Certain costs chargeable to a sector of an industry–as for example, milk assembly and hauling costs–must be broken down from their total into the shares chargeable to individual users. When there is flexibility in this apportionment of cost shares, part of the burden upon the individual shipper becomes an industry-apportioned constraint upon individual firms, in this case dairymen-shippers. An alternative means of apportioning hauling costs is suggested, to retain large shippers in the conventional hauling system, and to sustain that system for the benefit of small dairymen.

Type
Contributed Papers
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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References

Karpoff, E., Webster, F. C., and Saunders, E. T. The Rate Structure for Hauling Bulk Milk from Vermont Farms. University of Vermont Agr. Exp. Sta. Bull. (in preparation), 1981.Google Scholar
Roof, J., and Tucker, G. An Equitable Charge and Payment System for Least-Cost Milk Assembly in Indiana. Farmer Coop. Serv., Washington, D.C. Service Report 127, 1972.Google Scholar
Tremblay, R. H. 1979 ELFAC Dairy Farm Business Analysis. Coop. Ext. Serv. of the Northeastern States, NE 242, 1980.Google Scholar