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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. 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. 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.
    3. 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).
    4. 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).
    5. 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.
    6. 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.
    7. Vishnu, Kedar & Rai, Ruchika, 2022. "Measuring The Impact of Transaction Costs on Profitability of Farmers: Empirical Evidence from India," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322593, Agricultural and Applied Economics Association.
    8. 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.
    9. Aritri Chakravarty, 2022. "Impact of Information on Technical Efficiency of Agricultural Production in India," BASE University Working Papers 14/2022, BASE University, Bengaluru, India.
    10. 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.
    11. Läpple, 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.
    12. Loren W. Tauer, 2009. "Estimation of Treatment Effects of Recombinant Bovine Somatotropin Using Matching Samples," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 411-423, September.
    13. Diwakar KC & Dinesh Jamarkattel & Tek Maraseni & Dilip Nandwani & Pratibha Karki, 2021. "The Effects of Tunnel Technology on Crop Productivity and Livelihood of Smallholder Farmers in Nepal," Sustainability, MDPI, vol. 13(14), pages 1-15, July.
    14. 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.
    15. 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.
    16. Bradford L. Barham & Jeremy D. Foltz & Sunung Moon & Douglas Jackson-Smith, 2004. "A Comparative Analysis of Recombinant Bovine Somatotropin Adoption across Major U.S. Dairy Regions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 32-44.
    17. Gillespie, Jeffrey & Njuki, Eric & Terán, Angel, 2024. "Structure, Costs, and Technology Used on U.S. Dairy Farms," Economic Research Report 344571, United States Department of Agriculture, Economic Research Service.
    18. Butler, Leslie J. & Henriques, Irene, 2001. "Adoption and Diffusion of Biotechnology: rbST in California," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125548, Australian Agricultural and Resource Economics Society.
    19. William D. McBride & Sara Short & Hisham El-Osta, 2004. "The Adoption and Impact of Bovine Somatotropin on U.S. Dairy Farms," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(4), pages 472-488.
    20. Tauer, Loren W., 2000. "The Impact of bST on Farm Profits," Working Papers 127677, Cornell University, Department of Applied Economics and Management.
    21. Yiorgos Gadanakis & Jorge Campos-González & Philip Jones, 2024. "Linking Entrepreneurship to Productivity: Using a Composite Indicator for Farm-Level Innovation in UK Agriculture with Secondary Data," Agriculture, MDPI, vol. 14(3), pages 1-23, March.
    22. Kedar, Vishnu Shankarrao & Kumar, Parmod & Neharkar, Pratibha, 2021. "Transaction Costs, Institutions and Smallholder Market Integration: Chili Producers in India," 2021 Annual Meeting, August 1-3, Austin, Texas 313970, Agricultural and Applied Economics Association.
    23. 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).
    24. 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).
    25. 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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