Hostname: page-component-848d4c4894-8bljj Total loading time: 0 Render date: 2024-07-01T22:34:39.879Z Has data issue: false hasContentIssue false
  • English
  • Français

Impacts of the Northeast Interstate Dairy Compact on New England Milk Supply

Published online by Cambridge University Press:  15 September 2016

Charles F. Nicholson ,
Budy Resosudarmo  and
Rick Wackernagel
Charles F. Nicholson
Affiliation:
Department of Applied Economics and Management at Cornell University
Budy Resosudarmo
Affiliation:
Department of Economics at the University of Indonesia
Rick Wackernagel
Affiliation:
Department of Applied Economics at the University of Vermont
Get access

Abstract

A two-equation random coefficients model and two estimates of milk prices in the absence of the Northeast Interstate Dairy Compact (Compact) are used to estimate the impact of minimum price regulation for fluid milk products on milk production in the New England states. Estimated responses to price enhancement differed by state for cow numbers, but parameters for milk per cow were not significantly different among states. The amount of increase in milk production attributed to the Compact is estimated at 45 million pounds (about 1% of production) during the first year of minimum price regulation, primarily due to increased milk per cow.

Type
Impacts of the Northeast Dairy Compact
Information
Agricultural and Resource Economics Review , Volume 30 , Issue 1 , April 2001 , pp. 93 - 103
Copyright
Copyright © 2001 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Chavas, J-P., Kraus, A.F., and Jesse, E.V. 1990. “A Regional Analysis of Milk Supply Response in the United States.” North Central Journal of Agricultural Economics 12: 149–164.Google Scholar
Dillon, J. 1977. The Analysis of Response in Crop and Livestock Production. 2d ed. Oxford: Pergamon Press. Google Scholar
Dixon, B.L., Susanto, D., and Berry, C.R. 1991. “Supply Impact of the Milk Diversion and Dairy Termination Programs.” American Journal of Agricultural Economics 73: 633–640.Google Scholar
Foley, R.C., Bath, D.L., Dickinson, F.N., and Tucker, H.A. 1972. Dairy Cattle: Principles, Practices, Problems, and Profits. Philadelphia: Lea and Febiger.Google Scholar
Kaiser, H.M. 1994. “An Analysis of Alternatives to the Dairy Price Support Program.” Agricultural and Resource Economics Review 23: 158–170.Google Scholar
Sun, C.H., Kaiser, H.M., and Forker, O.D. 1995. “Analysis of seasonal milk price incentive plans.” Review of Agricultural Economics 17: 383–393.Google Scholar
Swamy, P. 1974. “Linear Models with Random Coefficients.” Frontiers in Econometrics, Zarembka, P. (ed.) New York: Academic Press.Google Scholar
Wackernagel, R. 2000. “New England Milk Supply, 1977 to 1998: A Graphical Summary.” The Northeast Interstate Dairy Compact: Milk Market Impacts, pp. 1–21. (Research Report 73.) Agricultural Experiment Station. University of Vermont.Google Scholar