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Economic Effects Of U.S. Dairy Programs

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  • Helmberger, Peter G.
  • Chen, Yu-Hui

Abstract

Based on econometric analysis, this article estimates effects of terminating the milk order system and milk price support, singly and together, over the period 1966-90. Since 1980, milk orders have raised the national blend price by 1-2%; price support has raised the blend price to well above the market clearing price, by over 21% in 1983. Short- and long-run benefits and costs are estimated for various policy options under 1990 conditions.

Suggested Citation

  • Helmberger, Peter G. & Chen, Yu-Hui, 1994. "Economic Effects Of U.S. Dairy Programs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-14, December.
    • Handle: RePEc:ags:jlaare:30750
    DOI: 10.22004/ag.econ.30750
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    References listed on IDEAS

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    1. Charles W. Bausell & Scott L. Smith & David A. Belsley, 1992. "An Analysis of 1980s Dairy Programs and Some Policy Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 605-616.
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    Cited by:

    1. Julian M. Alston & Joseph V. Balagtas & Henrich Brunke & Daniel A. Sumner, 2006. "Supply and demand for commodity components: implications of free trade versus the AUSFTA for the US dairy industry ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 131-152, June.
    2. Vavra, Pavel & Kuga, Nobunori & Anton, Jesus & Dewbre, Joe, 2003. "Trade Effects of Dairy Pricing Arrangements," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25862, International Association of Agricultural Economists.
    3. Glenn Furton & Adam Martin, 2019. "Beyond market failure and government failure," Public Choice, Springer, vol. 178(1), pages 197-216, January.
    4. Jean‐Paul Chavas & Thomas L. Cox & Edward Jesse, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics, International Association of Agricultural Economists, vol. 18(1), pages 1-19, January.
    5. D’Antoni, Jeremy M. & Mishra, Ashok K. & Blayney, Donald, 2013. "Assessing participation in the Milk Income Loss Contract program and its impact on milk production," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 243-254.
    6. Alston, Julian M. & Sumner, Daniel A. & Balagtas, Joseph Valdes & Brunke, Henrich, 2004. "Economic Implications Of The Australia-U.S. Free Trade Agreement For U.S. Dairy Markets And Domestic Dairy Farm Programs," 2004 Annual meeting, August 1-4, Denver, CO 20164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 2005. "Efficiency losses in milk marketing boards - the importance of exports," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 77-97.
    8. Kuga, Nobunori & Vavra, Pavel & Anton, Jesus & Dewbre, Joe, 2003. "Trade And Welfare Effects Of Dairy Price Support Measures," 2003 Annual meeting, July 27-30, Montreal, Canada 21951, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Parcell, Joseph L. & Kastens, Terry L. & Dhuyvetter, Kevin C. & Schroeder, Ted C., 2000. "Agricultural Economists' Effectiveness In Reporting And Conveying Research Procedures And Results," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(2), pages 1-10, October.
    10. 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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    Keywords

    Agricultural and Food Policy;

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