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Analysis of the Impact of Alternative U.S. Dairy Import Policies

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  • Larry Salathe
  • William D. Dobson
  • Gustof A. Peterson

Abstract

A simulation model is used to measure the impact of four U.S. dairy import plans on Wisconsin farm milk prices and other variables. Estimates for different plans show that each additional billion pounds of milk equivalent in dairy imports would depress Wisconsin farm prices initially by $0.14 to $0.21 per hundredweight. Wisconsin farm milk prices initially would fall by 18% if the milk equivalent of butter and cheese imports rose to 12 billion pounds. Within three years, milk prices would recover. But this recovery would occur only after about 13% of Wisconsin's milk producers had exited from dairying.

Suggested Citation

  • Larry Salathe & William D. Dobson & Gustof A. Peterson, 1977. "Analysis of the Impact of Alternative U.S. Dairy Import Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(3), pages 496-506.
  • Handle: RePEc:oup:ajagec:v:59:y:1977:i:3:p:496-506.
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    File URL: http://hdl.handle.net/10.2307/1239651
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    Cited by:

    1. Lamm, R. McFall Jr., 1980. "Effects of Government Policy on Agriculture: An Empirical Analysis," Economics Statistics and Cooperative Services (ESCS) Reports 329209, United States Department of Agriculture, Economic Research Service.
    2. W. D. Dobson, 1992. "The deregulation of the US dairy industry: Implications for world dairy markets," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 457-471.
    3. Dahlgran, Roger A., 1981. "Dairy Marketing And Policy Analysis: A Critical Review Of Recent Empirical Studies," Department of Economics and Business - Archive 259651, North Carolina State University, Department of Economics.
    4. Bailey, Kenneth W. & Wu, Zhen, 2005. "An Economic Model Of U.S. Imports Of Butter And Milk Fat Products," Staff Paper Series 18846, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.

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