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An Economic Analysis of Selected U. S. Dairy Program Changes

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  • Whipple, Glen D.
  • Powe, Charles
  • Gray, Morgan

Abstract

An interregional reactive programming model of the United States dairy industry is used to test the welfare implications of several dairy program changes on milk producers, milk consumers, and taxpayers. The results showed that each of the tested alternatives (price support reduction, price support reduction with frozen minimum Class I price, assessments, and production quotas) could reduce price support expenditures substantially. However, assessments reduced expenditures most effectively in terms of cost to milk producers for the United States generally while price support reduction with frozen minimum Class I price was most efficacious in terms of cost to Southeast producers.

Suggested Citation

  • Whipple, Glen D. & Powe, Charles & Gray, Morgan, 1985. "An Economic Analysis of Selected U. S. Dairy Program Changes," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 181-192, December.
    • Handle: RePEc:cup:jagaec:v:17:y:1985:i:02:p:181-192_02
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    Cited by:

    1. Richard L. Kilmer & Xiling Wu, 1988. "The importance of demand and supply elasticities in dairy policy analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 4(3), pages 217-231.
    2. Cox, Thomas L. & Chavas, Jean-Paul & Jesse, Edward V., 1994. "Regional Impacts of Reducing Dairy Price Supports and Removing Milk Marketing Orders in the U.S. Dairy Sector," Staff Papers 200580, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.

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