Advanced Search
MyIDEAS: Login to save this paper or follow this series

Assessing The Response Of Farm Households To Dairy Policy Reform In Israel

Contents:

Author Info

  • Kimhi, Ayal
  • Rubin, Ofir D.

Abstract

After nearly fifty years of stability and stagnation of dairy market regulations in Israel, a dramatic policy reform has been enacted in 1999. The reform enabled farm households, for the first time, to trade production quotas. In addition, the reform signaled to farmers that milk prices will gradually go down in real terms, and therefore only producers who expand and become more efficient will prevail. The reform allowed for generous financial support for investment in expansion, but also required the adoption of environmental regulations which could be costly to many farm families. This paper uses data from a census of small family-operated dairy enterprises that was conducted in 2001, in order to analyze the response of farm households to the reform. The results imply that the reform was particularly attractive for already strong producers. Weaker producers are less attracted by the reform and will likely fade away by default in the long run. Another finding is that intergenerational succession is an important element of decision making of milk producers. Hence, the response of farm households to changes in the economic environment cannot be disentangled from the occupational decisions of their offspring. These findings imply that the desired structural change in the family-farm milk production sector will take much longer than expected, essentially as long as the current generation of producers is around. This requires, perhaps, an extension of the reform period or a change in incentives in favor of the smaller and older producers.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/7134
Download Restriction: no

Bibliographic Info

Paper provided by Hebrew University of Jerusalem, Department of Agricultural Economics and Management in its series Discussion Papers with number 7134.

as in new window
Length:
Date of creation: 2006
Date of revision:
Handle: RePEc:ags:huaedp:7134

Contact details of provider:
Postal: Faculty of Agriculture, Food and Environmental Quality Sciences Hebrew University of Jerusalem, P.O. Box 12, Rehovot 76100
Phone: 08-9481230
Fax: 08-9466267
Web page: http://departments.agri.huji.ac.il/economics/indexe.html
More information through EDIRC

Related research

Keywords: milk policy reform; technology adoption; intergenerational succession; Agricultural and Food Policy; Livestock Production/Industries;

Other versions of this item:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Beghin, John C., 2006. "Evolving Dairy Markets in Asia: Recent Findings and Implications," Staff General Research Papers 12506, Iowa State University, Department of Economics.
  2. Murat Isik & Madhu Khanna, 2003. "Stochastic Technology, Risk Preferences, and Adoption of Site-Specific Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 305-317.
  3. JooHo Song & Daniel A. Sumner, 1999. "Dairy Demand, Supply and Policy in Korea: Potential for International Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 133-142, December.
  4. Jesse, Edward V., 2003. "World Trade in Dairy Products and the U.S. Role: An Illustrated Primer," Discussion Papers 37582, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
  5. Schluep Campo, Isabelle & Beghin, John C., 2006. "Dairy food consumption, supply, and policy in Japan," Food Policy, Elsevier, vol. 31(3), pages 228-237, June.
  6. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-28, July.
  7. Jeffrey H. Dorfman, 1996. "Modeling Multiple Adoption Decisions in a Joint Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 547-557.
  8. Khanna, Madhu, 1999. "Sequential Adoption Of Site-Specific Technologies And Its Implications For Nitrogen Productivity: A Double Selectivity Model," 1999 Annual meeting, August 8-11, Nashville, TN 21599, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Arturo Estrella, 1997. "A new measure of fit for equations with dichotomous dependent variables," Research Paper 9716, Federal Reserve Bank of New York.
  10. Justin Yifu Lin, 1990. "Education and Innovation Adoption in Agriculture: Evidence from Hybrid Rice in China," UCLA Economics Working Papers 603, UCLA Department of Economics.
  11. Jeremy D. Foltz, 2004. "Entry, Exit, and Farm Size: Assessing an Experiment in Dairy Price Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 594-604.
  12. Bruce A. Babcock & John C. Beghin & Jacinto F. Fabiosa & Stephane De Cara & Amani Elobeid & Cheng Fang & Chad E. Hart & Murat Isik & Holger Matthey & Alexander E. Saak & Karen Kovarik & FAPRI Staff, 2002. "Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The," Center for Agricultural and Rural Development (CARD) Publications 02-wp317, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  13. Pat Westhoff & D. Scott Brown & Brian Willott & Daniel Madison & Seth Meyer & John Kruse, 2005. "The Doha Round of the World Trade Organization and Agricultural Markets Liberalization: Impacts on Developing Economies," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 317-335.
  14. Cooper, Joseph C. & Keim, Russ, 1996. "Incentive payments to encourage farmer adoption of water quality protection practices," MPRA Paper 24779, University Library of Munich, Germany.
  15. Frank H. Fuller & John C. Beghin & Michael Boland & Bruce A. Babcock & William E. Foster, 2006. "Global Prospects for Dairy in Argentina and Chile: Evidence from Field Visits and Model Simulations," Center for Agricultural and Rural Development (CARD) Publications 06-mbp11, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  16. Fernandez-Cornejo, Jorge & Alexander, Corinne E. & Goodhue, Rachael E., 2002. "Dynamic Diffusion with Disadoption: The Case of Crop Biotechnology in the USA," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:huaedp:7134. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.