Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-14T04:27:21.846Z Has data issue: false hasContentIssue false
  • English
  • Français

Potential Economic Impacts of the Northeast Interstate Dairy Compact on Vermont Dairy Farms

Published online by Cambridge University Press:  15 September 2016

Rick Wackernagel
Rick Wackernagel*
Affiliation:
Department of Community Development and Applied Economics, University of Vermont
Get access

Abstract

The Northeast Interstate Dairy Compact has been established to regulate milk prices. Simulation models show impacts on Vermont farms of alternative milk prices and accelerated productivity growth. Enhancing prices (by $0.85/cwt) improves financial performance the most, while impacts of doubling growth in milk production/cow (to 2.6% per year) and setting a price floor (which reduces the standard deviation of the price by 19% and raises prices $0.12/cwt) are substantially smaller. These impacts are inversely related to farm profitability. However, impacts on larger farms are not proportionately larger than those on smaller farms. Reducing price variability has smaller impacts than the $0.12/cwt price increase.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 27 , Issue 1 , April 1998 , pp. 53 - 62
Copyright
Copyright © 1998 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

Anderson, D.P., Richardson, J.W., Knutson, R.D., Namken, J.C., Harris, T.R., Champney, W.O., Macdiarmid, T.R., and Marshall, A.B. 1993. “Alternative Grazing Fee Formula Impacts on Representative Public Land Ranches.” Journal of Range Management 46(6): 548–54.Google Scholar
Duffy, P.A., Richardson, J.W., and Smith, E.G. 1986. “The Effects of Alternative Farm Programs and Levels of Price Variability on Texas Cotton Farms.” Southern Journal of Agricultural Economics 18: 97–106.Google Scholar
FAPRI. 1997. 1996 U.S. Agricultural Outlook. Food and Agricultural Policy Research Institute. University of Missouri-Columbia and the Iowa State University. Staff report 1-97.Google Scholar
Farmer, M. 1996. Personal communication. Yankee Farm Credit. White River Junction, Vt.Google Scholar
Gempesaw, C.M., Elterich, G.J., Shivani, V., and Lass, D.A. 1993. “An Economic Impact Analysis of Alternative Dairy Policies: The Case of U.S. and German Dairy Farms.” Applied Economics 25(7): 961–70.Google Scholar
Grant, W.R., Richardson, J.W., Brorsen, B.W., and Rister, M.E. 1984. “Economic Impact of Increased Price Variability: A Case Study with Rice.” Agricultural Economic Research 36: 17–27.Google Scholar
Hastings, J.E. 1995. The Northeast Dairy Farm Summary, 1994. Springfield, Mass.: Farm Credit Financial Partners, Inc.Google Scholar
Hawkins, S. 1996. Personal communication. Champlain Valley Crop Management Association. Brandon, Vt.Google Scholar
Helms, G.L., Bailey, D.V., and Glover, T.F. 1987. “Government Programs and Adoption of Conservation Tillage Practices on Nonirrigated Wheat Farms.” American Journal of Agricultural Economics 69(4): 786–95.CrossRefGoogle Scholar
Nault, M. 1996. Personal communication. Vermont Dairy Herd Improvement Association. White River Junction, Vt.Google Scholar
Outlaw, J.L., Knutson, R.D., Schwart, R.B. Jr., Holt, J., Richardson, J.W., and Garis, D.H. 1991. “Impact of Reducing Federal Order Class I Differential on Representative Texas and New Mexico Dairy Farms.” Southern Journal of Agricultural Economics 23(2): 19–27.Google Scholar
Patrick, G.F., and Rao, A.S. 1989. “Crop Insurance's Role in Risk Management on Hog-Crop Farms.” North Central Journal of Agricultural Economics 11 (1): 1–10.Google Scholar
Pelsue, N.H. 1996. Milk Marketing. Newsletter. Burlington: University of Vermont Extension System.Google Scholar
Pelsue, N.H., Wackernagel, R., and Yu, M.Y. 1994. Analysis of Milk Production Costs in Vermont. Research report 71. June. Burlington: University of Vermont.Google Scholar
Richardson, J.W. 1996. Personal communication. Texas A&M University. College Station, Tex.Google Scholar
Richardson, J.W., Smith, E.G., Knutson, R.D., and Outlaw, J.L. 1991. Farm Level Impacts of Reduced Chemical Use on Southern Agriculture. Southern Journal of Agricultural Economics 23(1): 27–38.Google Scholar
Richardson, J.W., and Nixon, C.J. 1986. Description of FLIPSim V: A General Firm Level Policy Simulation Model. College Station: Agricultural and Food Policy Center, Texas A&M University.Google Scholar
Congress, U.S. 1996. Federal Agricultural Improvement and Reform Act (FAIR Act). P.L. 104-127, Section 147, codified at 7 U.S.C. 7256. Washington, D.C.Google Scholar
U.S. Department of Agriculture, National Agricultural Statistics Service. 1995. New England Agricultural Statistics. September 29. Concord, N.H.Google Scholar
U.S. Department of Commerce. 1994. 1992 Census of Agriculture. Washington, D.C.Google Scholar