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What are the preferences of Dairy Farmers regarding their Work? A Discrete Choice Experiment in the Eastern Part of Switzerland

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  • Lips, Markus
  • Gazzarin, Christian
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    Abstract

    The paper analyzes the preferences of dairy farmers with respect to their work by the means of a Discrete Choice experiment, which was carried out in the Eastern part of Switzerland. 304 dairy farmers, who intend to produce milk beyond the abolishment of the milk quota in 2009, were asked to choose between the status quo and alternatives consisting of several combinations with four attributes. The latter comprise work content, terms of employment, holiday per year and income per year. Using a probit model, the willingness to pay/accept is calculated. The results indicate that there is a strong preference to stay in dairy production. In order to achieve both, maintaining the level of utility and moving away from dairy production, an additional income (willingness to accept) per year of at least CHF 25’000.- would be necessary. The pre-ferences of dairy farmers show that differences between the alternative work contents like suckler cows husbandry, farming without livestock and work outside of agriculture are minor.

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    File URL: http://purl.umn.edu/44132
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44132.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaae08:44132

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    Related research

    Keywords: discrete choice; preferences; work content; dairy farming; Labor and Human Capital; Land Economics/Use;

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    1. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
    2. Nigel Key, 2005. "How much do farmers value their independence?," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 117-126, 07.
    3. Ben B. Davies & Ian D. Hodge, 2006. "Farmers' Preferences for New Environmental Policy Instruments: Determining the Acceptability of Cross Compliance for Biodiversity Benefits," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 393-414.
    4. Adam Drucker, 2007. "Measuring Heterogeneous Preferences for Cattle Traits among Cattle-Keeping Households in East Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1005-1019.
    5. Horowitz, John K. & McConnell, Kenneth E., 2002. "A Review of WTA/WTP Studies," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 426-447, November.
    6. Windle, Jill & Rolfe, John, 2005. "Diversification choices in agriculture: a Choice Modelling case study of sugarcane growers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), March.
    7. Jill Windle & John Rolfe, 2005. "Diversification choices in agriculture: a Choice Modelling case study of sugarcane growers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 63-74, 03.
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    Cited by:
    1. Mann, Stefan, 2009. "The Nature of the Diversified Farm Household," Working Papers 56726, Agroscope Reckenholz Tanikon (ART).

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