IDEAS home Printed from https://ideas.repec.org/p/ags/uconnr/25168.html

The Adoption and Profitability of rbST on Connecticut Dairy Farms

Author

Listed:
  • Foltz, Jeremy D.
  • Chang, Hsiu-Hui

Abstract

This work estimates Probit and Tobit models of the adoption of rbST on Connecticut dairy farms and then endogenizes that adoption in estimates of milk production and farm profit rates. The work improves on the current literature by allowing the rbST decision to be both continuous and contingent on other technology adoption decisions. The results show that larger farms, with more productivity technologies, and with younger, more educated farmers are more likely to adopt rbST. While rbST is shown to significantly increase milk production there is no evidence it increases profits on a per cow basis.

Suggested Citation

  • Foltz, Jeremy D. & Chang, Hsiu-Hui, 2001. "The Adoption and Profitability of rbST on Connecticut Dairy Farms," Research Reports 25168, University of Connecticut, Food Marketing Policy Center.
    • Handle: RePEc:ags:uconnr:25168
    DOI: 10.22004/ag.econ.25168
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25168/files/rr010055.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.25168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Hardle, Wolfgang & Linton, Oliver, 1986. "Applied nonparametric methods," Handbook of Econometrics, in: R. F. Engle & D. McFadden (ed.), Handbook of Econometrics, edition 1, volume 4, chapter 38, pages 2295-2339, Elsevier.
    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. Saha Atanu & H. Alan Love & Robert Schwart, 1994. "Adoption of Emerging Technologies Under Output Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 836-846.
    5. Zepeda, Lydia, 1990. "Predicting Bovine Somatotropin Use By California Dairy Farmers," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(01), pages 1-8, July.
    6. W. Lesser & John Bernard & Kaafee Billah, 1999. "Methodologies for ex ante projections of adoption rates for agbiotech products: Lessons learned from rBST," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 149-162.
    7. Bruce A. Larson & Fred Kuchler, 1990. "The Simple Analytics of Technology Adoption: Bovine Growth Hormone and the Dairy Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 12(1), pages 109-123.
    8. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, vol. 80(2), pages 313-318, May.
    9. Bradford L. Barham, 1996. "Adoption of a Politicized Technology: bST and Wisconsin Dairy Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1056-1063.
    10. C. Klotz & A. Sana & L.J. (Bees) Butler, 1995. "The Role of Information in Technology Adoption: The Case of rbST in the California Dairy Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(3), pages 287-298.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. Beatrice W. Muriithi & Nancy G. Gathogo & Gracious M. Diiro & Samira A. Mohamed & Sunday Ekesi, 2020. "Potential Adoption of Integrated Pest Management Strategy for Suppression of Mango Fruit Flies in East Africa: An Ex Ante and Ex Post Analysis in Ethiopia and Kenya," Agriculture, MDPI, vol. 10(7), pages 1-23, July.
    3. 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.
    4. 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.
    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. Grisham, Elisabeth & Gillespie, Jeffrey M., 2007. "Record-Keeping Technology Adoption in the Louisiana Dairy Industry," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34975, Southern Agricultural Economics Association.
    7. 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).
    8. 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.
    9. 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).
    10. 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.
    11. Caswell, Margriet F. & Fuglie, Keith O. & Klotz, Cassandra A., "undated". "Agricultural Biotechnology: An Economic Perspective," Agricultural Economic Reports 262025, United States Department of Agriculture, Economic Research Service.
    12. Vazquez-Alvarez, R. & Melenberg, B. & van Soest, A.H.O., 1999. "Nonparametric Modeling of the Anchoring Effect in an Unfolding Bracket Design," Discussion Paper 1999-115, Tilburg University, Center for Economic Research.
    13. Useche, Pilar & Barham, Bradford & Foltz, Jeremy, 2006. "A Trait Specific Model of GM Crop Adoption by Minnesota and Wisconsin Corn Farmers," Working Papers 201525, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    14. 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.
    15. Useche, Pilar & Barham, Bradford L. & Foltz, Jeremy D., 2005. "A Trait Specific Model of GM Crop Adoption among U.S. Corn Farmers in the Upper Midwest," 2005 Annual meeting, July 24-27, Providence, RI 19202, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Ufer, Danielle J. & Ortega, David L. & Wolf, Christopher A. & McKendree, Melissa & Swanson, Janice, 2022. "Getting past the gatekeeper: Key motivations of dairy farmer intent to adopt animal health and welfare-improving biotechnology," Food Policy, Elsevier, vol. 112(C).
    17. Qiangbing Chen & Yali Liu, 2011. "The Diffusion of a Process Innovation with Gently Declining Production Cost," Journal of Industry, Competition and Trade, Springer, vol. 11(2), pages 109-129, June.
    18. Vazquez-Alvarez, R. & Melenberg, B. & van Soest, A.H.O., 1999. "Nonparametric Bounds on the Income Distribution in the Presence of Item Nonresponse," Other publications TiSEM d37fb6a5-2075-42b2-b0b4-5, Tilburg University, School of Economics and Management.
    19. Elliott, Lisa & Parcell, Joe & Patterson, David & Smith, Michael F. & Poock, Scott, . "Factors Influencing Beef Reproductive Technology Adoption," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2013, pages 1-20.
    20. Kuehne, Geoff & Llewellyn, Rick & Pannell, David J. & Wilkinson, Roger & Dolling, Perry & Ouzman, Jackie & Ewing, Mike, 2017. "Predicting farmer uptake of new agricultural practices: A tool for research, extension and policy," Agricultural Systems, Elsevier, vol. 156(C), pages 115-125.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uconnr:25168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fmuctus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.