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Optimal Supply Rules in the Tart Cherry Industry: Summary Report

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Author Info

  • Miller, Steven R.
  • Hoehn, John P.
  • Thornsbury, Suzanne
  • Meyer, Jenny

Abstract

This analysis examined optimum supply formula (OSF) in the tart cherry industry. The OSF is a tool for stabilizing market prices as authorized by a federal market order (FMO). The current OSF sets free sales of tart cherries in a given harvest year, or optimum supply volume (OSV), equal to the average sales of the three prior years plus 10 percent. This report evaluates the current OSF relative to several alternative formulations. The analysis reviews data to identify sources of market stability, analyzes the demands for tart cherries and compares the current OSF with the alternatives.

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Bibliographic Info

Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 125089.

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Date of creation: Apr 2012
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Handle: RePEc:ags:midasp:125089

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Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
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Web page: http://www.aec.msu.edu/agecon/
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Related research

Keywords: Price Stability; Tart Cherry Marketing Order; Policy Simulation; Agricultural and Food Policy; Demand and Price Analysis; Q11; Q13;

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