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Technology Adoption Decisions in Dairy Production and the Role of Herd Expansion

Published online by Cambridge University Press:  15 September 2016

Hisham S. El-Osta  and
Mitchell J. Morehart
Hisham S. El-Osta
Affiliation:
USDA-Economic Research Service, 1800 M St. NW FL4, Washington, DC 20036-5831
Mitchell J. Morehart
Affiliation:
USDA-Economic Research Service, 1800 M St. NW FL4, Washington, DC 20036-5831
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Abstract

Technology adoption in dairy production allows for higher milk yield and lower per-unit costs. The importance of herd expansion and other factors to adoption was examined using a multinomial logit model and data from the USDA's 1993 Farm Costs and Returns Survey. Predicted probabilities of adoption were used to simulate the effect of herd expansion on milk production. Results identified age, size, and specialization in dairy production as important in increasing the likelihood of adopting a capital-intense technology. Education and size of operation positively impacted the decision to adopt a management-intense technology. Age, education, credit reserves, size, and increased usage of hired labor positively influenced the decision to adopt a combined capital- and management-intense technology.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 28 , Issue 1 , April 1999 , pp. 84 - 95
Copyright
Copyright © 1999 Northeastern Agricultural and Resource Economics Association 

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