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Dairy Farm Size, Entry, And Exit In A Declining Production Region

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  • Rahelizatovo, Noro C.
  • Gillespie, Jeffrey M.

Abstract

As with most agricultural industries, the U.S. dairy industry has evolved into a structure including fewer yet larger firms. In Louisiana, total milk production has declined along with dairy farm numbers since 1972. This study addresses the impact of alternative policies, macroeconomic factors, and technology on the structure of the Louisiana dairy industry using a micro-data non-stationary Markov chain analysis. Results indicate that a number of factors have affected the structure of the industry in Louisiana, including but not limited to prices, milk supply reduction programs, technology and interest rates.

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File URL: http://purl.umn.edu/15372
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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 31 (1999)
Issue (Month): 02 (August)
Pages:

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Handle: RePEc:ags:joaaec:15372

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: dairy farms; Markov chain analysis; seemingly unrelated regression; Marketing;

References

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  1. Boucher, Robert W. & Gillespie, Jeffrey M., 1997. "Projected Costs And Returns For Beef Cattle, Dairy Production, Swine Production And Forage Crops In Louisiana, 1997," AEA Information Series 31663, Louisiana State University, Department of Agricultural Economics and Agribusiness.
  2. Reimund, Donn A. & Martin, J. Rod & Moore, Charles V., 1981. "Structural Change in Agriculture: The Experience for Broilers, Fed Cattle, and Processing Vegetables," Technical Bulletins 157701, United States Department of Agriculture, Economic Research Service.
  3. Disney, W. Terry & Duffy, Patricia A. & Hardy, William E., Jr., 1988. "A Markov Chain Analysis Of Pork Farm Size Distributions In The South," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(02), December.
  4. Mike Massow & Alfons Weersink & Calum G. Turvey, 1992. "Dynamics of Structural Change in the Ontario Hog Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(1), pages 93-107, 03.
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Citations

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Cited by:
  1. Stokes, Jeffrey R., 2006. "Entry, Exit, and Structural Change in Pennsylvania's Dairy Sector," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
  2. Huettel, Silke & Jongeneel, Roelof A., 2008. "Structural Change in the Dairy Sectors of Germany and The Netherlands - A Markov Chain Analysis," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43659, European Association of Agricultural Economists.
  3. Peterson, Hikaru Hanawa, 2002. "Geographic Changes In U.S. Dairy Production," 2002 Annual meeting, July 28-31, Long Beach, CA 19792, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Landi, Chiara & Stefani, Gianluca & Rocchi, Benedetto & Lombardi, Ginevra V. & Giampaolo, Sabina, 2013. "Determinants of Structural Change in the agricultural sector: An Empirical Analysis of Farm Exit in Tuscany," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149893, Italian Association of Agricultural and Applied Economics (AIEAA).
  5. Rahelizatovo, Noro C. & Gillespie, Jeffrey M., 2002. "Factors Influencing The Implementation Of Best Management Practices In The Dairy Industry," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35241, Southern Agricultural Economics Association.
  6. Zimmermann, Andrea & Heckelei, Thomas, 2012. "Differences of farm structural change across European regions," Discussion Papers 162879, University of Bonn, Institute for Food and Resource Economics.
  7. Piet, Laurent, 2008. "The evolution of farm size distribution: revisiting the Markov chain model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44269, European Association of Agricultural Economists.
  8. Isik, Murat, 2004. "The Role Of Environmental Regulation On Concentrations Of U.S. Livestock Sectors," 2004 Annual meeting, August 1-4, Denver, CO 20401, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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