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Factors Influencing Farmers' Selection Of A Milk Handler


  • Kilmer, Richard L.
  • Lee, Jonq-Ying
  • Carley, Dale H.


A structural probit model is estimated to determine the change in the probability of selecting a milk handler. Cooperatives are thought to have lower prices and higher deductions than independent milk handlers and these factors reduce the probability that a farmer will select a cooperative by 0.39 and 0.32. Cooperatives are thought to have better services and an assured market and payment than independent mile handlers and these factors increase the probability that a farmer will select a cooperative by 0.20 and 0.26. This indicates that many cooperative members value monetary characteristics over non-monetary characteristics.

Suggested Citation

  • Kilmer, Richard L. & Lee, Jonq-Ying & Carley, Dale H., 1994. "Factors Influencing Farmers' Selection Of A Milk Handler," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
  • Handle: RePEc:ags:joaaec:15174

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    Cited by:

    1. Jensen, Kimberly L. & English, Burton C. & Clark, Christopher D. & Menard, R. Jamey, 2011. "Preferences for Marketing Arrangements by Potential Switchgrass Growers," Journal of Cooperatives, NCERA-210, vol. 25.
    2. Gabor G. Szabo & Krisztina Bardos, 2005. "Vertical Coordination by Contracts in Agribusiness - An Empirical Research in the Hungarian Dairy Sector," IEHAS Discussion Papers 0515, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.


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