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An Evaluation of the Effectiveness of the Florida Cooperative's Seasonal Pricing Plan on Seasonal Production Variability

Published online by Cambridge University Press:  28 April 2015

Andrew A. Washington
Affiliation:
Department of Economics, Southern University, Baton Rouge and former doctoral student
Robert W. Lawson Jr
Affiliation:
former master's student
Richard L. Kilmer
Affiliation:
Food and Resource Economics Department, University of Florida, Gainesville

Abstract

From 1993–1995, Florida dairy cooperatives implemented a seasonal pricing plan in an attempt to decrease the variability in seasonal production. Farmers that participated in the seasonal pricing plan were able to reduce seasonality in each year when compared to 1992 by as much as 20 percent. For farmers that did not participate, seasonality increased in each year by as much as 32 percent. Overall, the seasonal pricing plan was effective in reducing seasonality for those farmers that chose to participate in the plan and that its limited short-run success was the result of seasonality increases by non-participating farms.

Type
Articles
Copyright
Copyright © Southern Agricultural Economics Association 2000

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