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An Economic Analysis Of Selected U.S. Dairy Program Changes

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  • Whipple, Glen D.
  • Powe, Charles
  • Gray, Morgan D.

Abstract

An interregional reactive programming model of the United States dairy industry is used to test the welfare implications of several dairy program changes on milk producers, milk consumers, and taxpayers. The results showed that each of the tested alternatives (price support reduction, price support reduction with frozen minimum Class I price, assessments, and production quotas) could reduce price support expenditures substantially. However, assessments reduced expenditures most effectively in terms of cost to milk producers for the United States generally while the price support reduction with frozen minimum Class I price was most efficacious in terms of cost to Southeast producers.

Suggested Citation

  • Whipple, Glen D. & Powe, Charles & Gray, Morgan D., 1985. "An Economic Analysis Of Selected U.S. Dairy Program Changes," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-11, December.
    • Handle: RePEc:ags:sojoae:29976
    DOI: 10.22004/ag.econ.29976
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    References listed on IDEAS

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    1. Boyd M. Buxton & Jerome W. Hammond, 1974. "Social Cost of Alternative Dairy Price Support Levels," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 286-291.
    2. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936.
    3. Dean Chen & Richard Courtney & Andrew Schmitz, 1972. "A Polynomial Lag Formulation of Milk Production Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 77-83.
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