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The Empirical Impact of Bovine Somatotropin on a Group of New York Dairy Farms

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  • Zdenko Stefanides
  • Loren W. Tauer

Abstract

Data from a panel of New York Dairy farms were used to estimate bST adoption functions, and to measure the impact of bST on milk output and profitability per cow. Adoption results are consistent with previous ex ante bST adoption studies. Farm size, productivity, and education of the principal operator are the most important explanatory variables influencing adoption. The use of bST was found to significantly increase milk output per cow net of other explanatory variables, correcting for self-selection with respect to bST use. The impact on profits was, however, not statistically different from zero at any conventional statistical significance level. Copyright 1999, Oxford University Press.

Suggested Citation

  • Zdenko Stefanides & Loren W. Tauer, 1999. "The Empirical Impact of Bovine Somatotropin on a Group of New York Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 95-102.
  • Handle: RePEc:oup:ajagec:v:81:y:1999:i:1:p:95-102
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    1. Kinnucan, Henry & Hatch, Upton & Molnar, Joseph J. & Venkateswaran, Meenakshi, 1990. "Scale Neutrality of Bovine Somatotropin: Ex Ante Evidence from the Southeast," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(02), pages 1-12, December.
    2. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    3. Zdenko Stefanides & Loren W. Tauer, 1999. "The Empirical Impact of Bovine Somatotropin on a Group of New York Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 95-102.
    4. Tauer, Loren W. & Kaiser, Harry M., 1988. "Negative Milk Supply Response Under Constrained Profit Maximizing Behavior," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(2), October.
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    1. Tauer, Loren W., 2003. "The Impact of recombinant bovine Somatotropin on Dairy Farm Profits: A Switching Regression Analysis," Working Papers 127241, Cornell University, Department of Applied Economics and Management.
    2. Zdenko Stefanides & Loren W. Tauer, 1999. "The Empirical Impact of Bovine Somatotropin on a Group of New York Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 95-102.
    3. Jeremy D. Foltz & Hsiu-Hui Chang, 2002. "The Adoption and Profitability of rbST on Connecticut Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1021-1032.
    4. Barham, Bradford L. & Foltz, Jeremy D. & Moon, Sunung & Jackson-Smith, Douglas, 2002. "Rbst Use Among U.S. Dairy Farmers: A Comparative Analysis From 6 States," 2002 Annual meeting, July 28-31, Long Beach, CA 19598, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Oehmke, James F. & Wolf, Christopher A., 2002. "Technology Valuation Distributions With Heterogeneous Adopters," 2002 Annual meeting, July 28-31, Long Beach, CA 19777, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Demont, Matty & Tollens, Eric, 1999. "The Economics Of Agricultural Biotechnology: Historical And Analytical Framework," Working Papers 31845, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    7. Mishra, Ashok K. & Kumar, Anjani & Joshi, Pramod K. & D'souza, Alwin, 2016. "Impact of contracts in high yielding varieties seed production on profits and yield: The case of Nepal," Food Policy, Elsevier, vol. 62(C), pages 110-121.
    8. Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
    9. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.
    10. Butler, Leslie J. & Henriques, Irene, 2001. "Adoption and Diffusion of Biotechnology: rbST in California," 2001 Conference (45th), January 23-25, 2001, Adelaide 125548, Australian Agricultural and Resource Economics Society.
    11. Peter Slade & Getu Hailu, 2016. "Efficiency and regulation: a comparison of dairy farms in Ontario and New York State," Journal of Productivity Analysis, Springer, vol. 45(1), pages 103-115, February.
    12. Tauer, Loren W., 2000. "The Impact of bST on Farm Profits," Working Papers 127677, Cornell University, Department of Applied Economics and Management.
    13. Lesser, William H., 1997. "Assessing the Implications of IPR on Plant and Animal Agriculture," Staff Papers 121166, Cornell University, Department of Applied Economics and Management.
    14. L├Ąpple, Doris & Renwick, Alan & Thorne, Fiona, 2015. "Measuring and understanding the drivers of agricultural innovation: Evidence from Ireland," Food Policy, Elsevier, vol. 51(C), pages 1-8.
    15. Barham, Bradford L. & Jackson-Smith, Douglas & Moon, Sunung, 2002. "The Dynamics Of Agricultural Biotechnology Adoption: Lessons From Rbst Use In Wisconsin, 1994-2001," 2002 Annual meeting, July 28-31, Long Beach, CA 19627, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. McBride, William D. & Short, Sara D. & El-Osta, Hisham S., 2002. "Production And Financial Impacts Of The Adoption Of Bovine Somatotropin On U.S. Dairy Farms," 2002 Annual meeting, July 28-31, Long Beach, CA 19908, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. An, Henry, 2008. "The Adoption and Disadoption of Recombinant Bovine Somatotropin in the U.S. Dairy Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6278, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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