IDEAS home Printed from https://ideas.repec.org/a/ags/arerjl/31512.html
   My bibliography  Save this article

Potential Economic Impacts Of The Northeast Interstate Dairy Compact On Vermont Dairy Farms

Author

Listed:
  • Wackernagel, Rick

Abstract

The Northeast Interstate Dairy Compact has been established to regulate milk prices. Simulation models show impacts on Vermont farms of alternative milk prices and accelerated productivity growth. Enhancing prices (by $0.85/cwt) improves financial performance the most, while impacts of doubling growth in milk production/cow (to 2.6% per year) and setting a price floor (which reduces the standard deviation of the price by 19% and raises prices $0.12/cwt) are substantially smaller. These impacts are inversely related to farm profitability. However, impacts on larger farms are not proportionately larger than those on smaller farms. Reducing price variability has smaller impacts than the $0.12/cwt price increase.

Suggested Citation

  • Wackernagel, Rick, 1998. "Potential Economic Impacts Of The Northeast Interstate Dairy Compact On Vermont Dairy Farms," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), pages 1-10, April.
  • Handle: RePEc:ags:arerjl:31512
    DOI: 10.22004/ag.econ.31512
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31512/files/27010053.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.31512?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richardson, James W. & Smith, Edward G. & Knutson, Ronald D. & Outlaw, Joe L., 1991. "Farm Level Impacts of Reduced Chemical Use on Southern Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(1), pages 27-37, July.
    2. Outlaw, Joe L. & Knutson, Ronald D. & Schwart, Robert B., Jr. & Holt, John & Richardson, James W. & Garis, Dalton H., 1991. "Impact Of Reducing Federal Order Class I Differential On Representative Texas And New Mexico Dairy Farms," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-9, December.
    3. Grant, W. R. & Richardson, J. W. & Brorsen, B. Wade & Rister, M. E., 1984. "Economic Impacts of Increased Price Variability: A Case Study with Rice," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 36(4), pages 1-11.
    4. George F. Patrick & Ananth S. Rao, 1989. "Crop Insurance's Role in Risk Management on Hog-Crop Farms," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 1-10.
    5. Duffy, Patricia A. & Richardson, James W. & Smith, Edward G., 1986. "Effects of Alternative Farm Programs and Levels of Price Variability on Texas Cotton Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 97-106, December.
    6. Gary L. Helms & DeeVon Bailey & Terrence F. Glover, 1987. "Government Programs and Adoption of Conservation Tillage Practices on Nonirrigated Wheat Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 786-795.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joseph V. Balagtas & Daniel A. Sumner, 2003. "The Effect of the Northeast Dairy Compact on Producers and Consumers, with Implications of Compact Contagion," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 123-144.
    2. Dhar, Tirtha Pratim & Cotterill, Ronald W., 2002. "Two-Stage Oligopoly Pricing With Differentiated Product: The Boston Fluid Milk Market," 2002 Annual meeting, July 28-31, Long Beach, CA 19872, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sheng Gong & Jason.S. Bergtold & Elizabeth Yeager, 2021. "Assessing the joint adoption and complementarity between in-field conservation practices of Kansas farmers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-24, December.
    2. Beatrice Dingha & Leah Sandler & Arnab Bhowmik & Clement Akotsen-Mensah & Louis Jackai & Kevin Gibson & Ronald Turco, 2019. "Industrial Hemp Knowledge and Interest among North Carolina Organic Farmers in the United States," Sustainability, MDPI, vol. 11(9), pages 1-17, May.
    3. Griffith, Garry R. & Moore, Walter B., 1991. "Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967-1988," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(1), pages 1-28, April.
    4. Foster, Thomas H., 1991. "Farm Level Impacts Of Reduced Chemical Use On Southern Agriculture: Discussion," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-3, July.
    5. Makus, Larry D. & Guenthner, Joseph F. & Lin, Biing-Hwan, 1992. "Factors Influencing Producer Support For A State Mandatory Seed Law: An Empirical Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(2), pages 1-8, December.
    6. Richardson, James W. & Knutson, Ronald D., 1987. "Effects Of Farm Policy On The Firm Level Risk Environment And Implications For Policy," Regional Research Projects > 1987: S-180 Annual Meeting, March 22-25, 1987, San Antonio, Texas 272774, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    7. Gillespie, Jeffrey M. & Hatch, L. Upton & Duffy, Patricia A., 1990. "Effect Of The 1985 Farm Bill Provisions On Farmers' Soil Conservation Decisions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-11, December.
    8. Massey, Raymond E. & Williams, Joseph E., 1991. "Swine Breeding Systems: A Stochastic Evaluation With Implications For Emerging Technology," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-9, July.
    9. Che, Yuyuan & Rejesus, Roderick M. & Cavigelli, Michel A. & White, Kathryn E., 2022. "Long-Term Economic Impacts of No-Till Adoption," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322171, Agricultural and Applied Economics Association.
    10. Archer, David W. & Shogren, Jason F., 1996. "Endogenous risk in weed control management," Agricultural Economics, Blackwell, vol. 14(2), pages 103-122, July.
    11. Tanaka, Katsuya & Wu, JunJie, 2004. "Evaluation Of Conservation Policies For Reducing Nitrogen Loads To The Mississippi River And Gulf Of Mexico," 2004 Annual meeting, August 1-4, Denver, CO 20135, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Parveen Setia & Bengt Hyberg & Daniel Ugarte & Daryll Ray, 1997. "Planting flexibility: Implications for agricultural sustainability," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(3), pages 299-311, August.
    13. Krause, Joyce Hall & Brorsen, B. Wade, 1995. "Outcomes of government corn support policies under alternate assumptions of risk," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 279-291, June.
    14. JunJie Wu & Richard M. Adams & Catherine L. Kling & Katsuya Tanaka, 2004. "From Microlevel Decisions to Landscape Changes: An Assessment of Agricultural Conservation Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 26-41.
    15. Hodde, Whitney & Sesmero, Juan & Gramig, Benjamin & Vyn, Tony & Doering, Otto, 2016. "Climate Change and the Economics of Conservation Tillage," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236090, Agricultural and Applied Economics Association.
    16. Milton S. Boyd & B. Wade Brorsen & Warren R. Grant, 1987. "Soybean crushing margins and risk," Agribusiness, John Wiley & Sons, Ltd., vol. 3(2), pages 235-239.
    17. Knutson, Ronald D. & Richardson, James W. & Smith, Edward G. & Rister, M. Edward & Grant, Warren R. & Lippke, Lawrence A. & Israelsen, Craig L., 2002. "Economic Impacts of Farm Program Payment Limits," Working Papers 42717, Texas A&M University, Agricultural and Food Policy Center.
    18. Weaver, Robert D. & Rauniyar, Ganesh, 1993. "The Economics of Adoption of Environmentally Beneficial Agricultural Practices: (EBAPs): An Analytical Review of Evidence," Staff Paper Series 256847, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    19. Hansen, J. W., 1996. "Is agricultural sustainability a useful concept?," Agricultural Systems, Elsevier, vol. 50(2), pages 117-143.
    20. Harrington, Thomas Barth, Jr., 1989. "The impact of decoupling on Iowa feed grain producers," ISU General Staff Papers 1989010108000017596, Iowa State University, Department of Economics.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:arerjl:31512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/nareaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.