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Supply Impact of the Milk Diversion and Dairy Termination Programs

Author

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  • Bruce L. Dixon
  • Calvin R. Berry
  • Dwi Susanto

Abstract

A two-equation random coefficient regression model of commercial milk production is estimated using monthly observations from 1983 through June 1988 for the twenty-one major milk-producing states in the United States. Policy variables are entered into the model to represent the impact of the Milk Diversion Program (MDP) and the Dairy Termination Program (DTP). The MDP was primarily short term in impact and the DTP has been longer term. The DTP provision banning producers who exited under the program from producing for five years appears to have been ineffectual. The programs' effectiveness across states has varied considerably.

Suggested Citation

  • Bruce L. Dixon & Calvin R. Berry & Dwi Susanto, 1991. "Supply Impact of the Milk Diversion and Dairy Termination Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 633-640.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:3:p:633-640.
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    Citations

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    Cited by:

    1. Carlos Arias & Thomas Cox, 2001. "Estimation of a US dairy sector model by maximum simulated likelihood," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1201-1211.
    2. Kaiser, Harry M., 1994. "An Analysis Of Policy Alternatives To The Dairy Price Support Program," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), pages 1-13, October.
    3. Nicholson, Charles F. & Resosudarmo, Budy P. & Wackernagel, Rick, 2001. "Impacts Of The Northeast Interstate Dairy Compact On New England Milk Supply," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), pages 1-11, April.
    4. Kaiser, Harry M., 1993. "An Analysis of Alternatives to the Dairy Price Support Program," Research Bulletins 123016, Cornell University, Department of Applied Economics and Management.
    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. Paudel, Krishna P. & Gauthier, Wayne M. & Hall, Larry M. & Westra, John V., 2006. "Willingness to Participate in Dairy Programs to Reduce Manure Related Problems in Louisiana's Major Dairy Production Region," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35259, Southern Agricultural Economics Association.
    7. Russell L. Lamb, 2002. "A Market-Forces Policy for the New Farm Economy?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 15-30.
    8. Daan Boezeman & David de Pue & Morten Graversgaard & Stefan Möckel, 2023. "Less Livestock in North‐western Europe? Discourses and Drivers Behind Livestock Buyout Policies," EuroChoices, The Agricultural Economics Society, vol. 22(2), pages 4-12, August.
    9. Bolotova, Yuliya, 2020. "The Price Effects of Milk Supply Control in the U.S. Dairy Industry," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304209, Agricultural and Applied Economics Association.
    10. Arias, Carlos & Cox, Thomas L., 1998. "Estimation Of A U.S. Dairy Sector Model By Maximum Simulated Likelihood," Staff Papers 12617, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    11. Benson, Geoffrey A., 1992. "North Carolina Dairy Termination Program Participants' Plans," Archive 259721, North Carolina State University, Department of Agricultural and Resource Economics.
    12. Nubern, Chris A. & Purcell, Wayne D., 1997. "Competitiveness of Dairy Producers in a Deregulated Market," Staff Papers 232553, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    13. Bolotova, Yuliya, 2014. "Agricultural Supply Management and Antitrust in the United States System of Agribusiness," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-24, September.

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