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The Effects of Federal Milk Orders on the Economic Performance of U.S. Milk Markets

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Listed:
  • W. D. Dobson
  • Larry E. Salathe

Abstract

Class I price differentials maintained by the U.S. Department of Agriculture and producers during 1965–75 generated Grade A milk supplies in excess of fluid needs and reserves for the federal order system. As required by specified norms, USDA has adopted federal milk order provisions which reduce pronounced seasonality of milk production and lessen certain types of erratic and extreme price variation. If federal milk orders were eliminated and cooperatives and state agencies were barred from replacing the orders, then fluid milk markets characterized by lower Class I differentials, greater milk price variability, and smaller Grade A milk surpluses might emerge.

Suggested Citation

  • W. D. Dobson & Larry E. Salathe, 1979. "The Effects of Federal Milk Orders on the Economic Performance of U.S. Milk Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 213-227.
    • Handle: RePEc:oup:ajagec:v:61:y:1979:i:2:p:213-227.
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    File URL: http://hdl.handle.net/10.2307/1239726
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    Citations

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    Cited by:

    1. Penn, J.B., 1979. "Commodity Programs And Inflation," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278290, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Balagtas, Joseph Valdes & Sumner, Daniel A., 2004. "Milk Marketing Orders And Milk Sanitation Regulation: Re-Evaulating Marketing Orders' Welfare Effects," 2004 Annual meeting, August 1-4, Denver, CO 20399, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. 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.
    4. Prindle, Allen M., 1980. "Evaluation Of The Base-Excess Plan For Leveling Seasonal Milk Production: Case Example Of Maryland," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 9(1), pages 1-4, April.
    5. McDowell, Howard & Fleming, Ann M. & Fallert, Richard F., 1988. "Federal Milk Marketing Orders: An Analysis of Alternative Policies," Agricultural Economic Reports 308061, United States Department of Agriculture, Economic Research Service.
    6. Nubern, Chris A. & Purcell, Wayne D., 1997. "Competitiveness of Dairy Producers in a Deregulated Market," Staff Papers 232553, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    7. Prindle, Allen M., 1980. "Evaluation Of The Base-Excess Plan For Leveling Seasonal Milk Production: Case Example Of Maryland," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-4, April.
    8. Leathers, Howard D., 2007. "Orderly Marketing in Agriculture Revisited," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-12, October.

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