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Effects of subsidies in Russian dairy farming

Author

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  • Irina V. Bezlepkina
  • Alfons G. J. M. Oude Lansink
  • Arie J. Oskam

Abstract

This study develops a microeconometric model of specialized dairy farms in the Moscow region using panel data over the period 1995–2001. The model is used to analyze the role of subsidies on profit as well as input and output allocation. Theoretical conditions for short‐term profit maximization are not rejected by the data. Differences between farms allow for a fixed‐effect specification. The dairy producers in the region demonstrate a low responsiveness to market signals, but technology change becomes important. Labor, land, and livestock had low shadow prices. Although subsidies have a distorting effect on the input–output mix, this study shows they relieve the credit constraints on dairy farms and have an important positive influence on farm profit.

Suggested Citation

  • Irina V. Bezlepkina & Alfons G. J. M. Oude Lansink & Arie J. Oskam, 2005. "Effects of subsidies in Russian dairy farming," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 277-288, November.
    • Handle: RePEc:bla:agecon:v:33:y:2005:i:3:p:277-288
    DOI: 10.1111/j.1574-0864.2005.00067.x
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    References listed on IDEAS

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    7. Theodoros Skevas & Teresa Serra, 2016. "The role of pest pressure in technical and environmental inefficiency analysis of Dutch arable farms: an event-specific data envelopment approach," Journal of Productivity Analysis, Springer, vol. 46(2), pages 139-153, December.
    8. Tomislav Herceg & Iva Vuksanovic, 2017. "Technological progress in Croatian perennial agriculture," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(1), pages 18-32, May.
    9. Skevas, Theodoros & Lansink, Alfons Oude & Stefanou, Spiro E., 2012. "Measuring technical efficiency in the presence of pesticide spillovers and production uncertainty: The case of Dutch arable farms," European Journal of Operational Research, Elsevier, vol. 223(2), pages 550-559.
    10. Raushan Bokusheva & Irina Bezlepkina & Alfons Oude Lansink, 2009. "Exploring Farm Investment Behaviour in Transition: The Case of Russian Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 436-464, June.
    11. Zhu, Xueqin & Demeter, Robert Milan & Oude Lansink, Alfons G.J.M., 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists.
    12. Zhu, Xueqin & Milán Demeter, Róbert, 2012. "Technical efficiency and productivity differentials of dairy farms in three EU countries: the role of CAP subsidies," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-27.
    13. Xuan Chen & Dylan Bouchard & Gary Anderson, 2018. "Is the Dairy Relief Program Really Working? Evaluating Maine’s Tier Payment Program Using a Simulation Approach," Sustainability, MDPI, vol. 10(10), pages 1-16, September.
    14. Rizov, Marian, 2008. "Institutions, reform policies, and productivity growth in agriculture: Evidence from former communist countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 307-323.
    15. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.
    16. Jerzy Marzec & Andrzej Pisulewski, 2017. "The Effect of CAP Subsidies on the Technical Efficiency of Polish Dairy Farms," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 9(3), pages 243-273, September.
    17. Mohammed AL MAHISH, 2017. "The Impact Of Energy Subsidy On Nitrogen Fertilizer Producers In The Gcc," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 99-118.
    18. Hoehl, Stephan & Hess, Sebastian, 2018. "Estimating German Milk Supply Response Using A Global Vectorautoregressive Model," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275844, German Association of Agricultural Economists (GEWISOLA).
    19. Sara Pavone & Elena Pagliarino & Alessandro Manello, 2014. "Politiques publiques et secteur agro-industriel: le rôle du programme de développement rural en Piémont1 [Public policies for the agro-food sector: the role played by the rural development programme i," CERIS Working Paper 201414, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.

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