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Location Preference for Risk-Averse Dutch Dairy Farmers Immigrating to the United States

Author

Listed:
  • Richardson, James W.
  • Herbst, Brian K.
  • Duncan, Anthony
  • den Besten, Mark
  • van Hoven, Peter

Abstract

Increased environmental regulations and a milk quota that restricts growth have increased the interest in immigration to the United States by Dutch dairy farmers. A risk-based economic analysis of 23 representative U.S. dairy farms versus a representative Dutch farm shows that risk-averse Dutch dairy farmers would prefer to liquidate their dairy farms and invest in a large dairy in Idaho or north Texas. The risk ranking suggested that continuing to farm in the Netherlands rather than immigrating to the United States is preferred over only two of the 23 U.S. representative farms analyzed.

Suggested Citation

  • Richardson, James W. & Herbst, Brian K. & Duncan, Anthony & den Besten, Mark & van Hoven, Peter, 2007. "Location Preference for Risk-Averse Dutch Dairy Farmers Immigrating to the United States," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(3), pages 1-14, December.
    • Handle: RePEc:ags:joaaec:37061
    DOI: 10.22004/ag.econ.37061
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    Cited by:

    1. Luljeta Hajderllari & Kostas Karantininis & Ole Bonnichsen, 2012. "Danish Farmers and Investors: An analysis of reasons and motivations for increasing cross-border agricultural activities in Central and Eastern European countries," IFRO Working Paper 2012/10, University of Copenhagen, Department of Food and Resource Economics.

    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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