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Agglomeration Effects in Ontario's Dairy Farming

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  • Hailu, Getu
  • Deaton, Brady

Abstract

This paper examines the agllomeration hypothesis: i.e., firm productive efficiency is increased by closer proximity to other firms. Using a stochastic input distant function with heteroskedastic inefficiency effects, we find that the density of Ontario dairy farms has a significant positive economic effect on production efficiency. The finding has implications for understanding agricultural firm location and farmer led efforts to preserve agricultural farming activities in some regions.

Suggested Citation

  • Hailu, Getu & Deaton, Brady, 2015. "Agglomeration Effects in Ontario's Dairy Farming," 2015 Conference, August 9-14, 2015, Milan, Italy 211700, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211700
    DOI: 10.22004/ag.econ.211700
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    Cited by:

    1. Richard J Vyn & James Rude, 2020. "The Influence of Supply Management on Farmland Values in Ontario," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 815-834, December.
    2. Dayong Huang & Yangyang Zhu & Qiuyue Yu, 2022. "Spatial Spillover Effects of Agricultural Agglomeration on Agricultural Non-Point Source Pollution in the Yangtze River Basin," Sustainability, MDPI, vol. 14(24), pages 1-26, December.
    3. Pei Xu & Zehu Jin & Huan Tang, 2022. "Influence Paths and Spillover Effects of Agricultural Agglomeration on Agricultural Green Development," Sustainability, MDPI, vol. 14(10), pages 1-16, May.
    4. Lialina, Nataliia, 2018. "Вплив Інтенсивності Витрат Кормів На Ефективність Молочного Скотарства," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 4(1), March.
    5. Getu Hailu, 2023. "Reflections on technological progress in the agri‐food industry: Past, present, and future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(1), pages 119-141, March.

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    More about this item

    Keywords

    Food Consumption/Nutrition/Food Safety; Livestock Production/Industries;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D1 - Microeconomics - - Household Behavior
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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