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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
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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 

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Footnotes

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

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