We investigate the impact of five types of subsidies granted under the European Union Common Agricultural Policy on the persistent and transient inefficiency of Polish dairy farms. Our research shows that coupled and environmental subsidies reduce transient technical inefficiency, while the opposite is true for Less Favoured Areas (LFA) and other rural subsidies. Simultaneously, environmental, LFA, and other rural subsidies increase persistent technical inefficiency. These results imply that the impact of each type of subsidy on technical efficiency can be different and that the effect of the particular type of subsidy can vary between transient and persistent technical inefficiency.

This paper assesses the influence of heat and drought stress on the economic performance of the European dairy sector. Climatic data from the Gridded Agro-Meteorological data in Europe were combined with dairy enterprise data from the Farm Accountancy Data Network, resulting in a data set of 4412 farms in 22 European Union (EU) countries over the period 2007–2013. Since the performance of dairy farms is influenced by the context in which they operate, farms were grouped into areas representing similar climatic conditions through the use of a latent class analysis. Technical efficiency (TE) and economic downside risk were used as performance indicators against which the effect of climatic stress factors was evaluated. TE was estimated using a ‘true-fixed’ effect stochastic frontier model. Economic downside risk was based on gross margin deviations. Regression analysis suggests a significant negative effect of drought and heat stress on both TE and the downside gross margin difference in most climatic classes, with few exceptions. Results imply that both drought and heat stress-related issues need to be considered when designing adaptation strategies to address threats to the economic performance of the EU dairy sector.

This analysis examines aggregate structural changes in the United States dairy industry, 1987–2017. We estimate the likelihood of operation changes in herd size, entry, or exits for each of the lower 48 states using a semiparametric Markov process model. Small- and medium-sized dairy longevity correlates with higher dairy margins and productivity improvements. An increase in consumer expenditures on dairy products is associated with smaller operation exits. Industry dynamics exhibit a persistent trend toward consolidation in most states. The exit probability for each state and all size classes has increased significantly for most states since 2002.

We hypothesize that spatial spillovers among neighboring farms are not only driven by spatial proximity, but also by farm profitability considerations. This hypothesis is tested by examining the role of spatial spillovers in shaping somatic cell counts (SCC) on Wisconsin dairy farms. Results show that neighborhood links defined both in terms of geographic proximity and farm profitability give rise to spatial spillovers that affect SCC. Significant differences in the estimated spatial spillovers are observed when defining the neighborhood space in terms of both farm profitability and geographic proximity as opposed to geographic proximity alone, with the data favoring the former specification.

This study explored how farmers’ motivation in terms of use values and/or non-use values to work with farm animal welfare are associated with the economic outcome for the farm. Use values in farm animal welfare refer to economic value derived from productivity and profitability considerations. Non-use values in farm animal welfare refer to economic value derived from good animal welfare, irrespective of the use the farmer derives from the animal, currently or in the future. The analysis was based on detailed information about the income statements of a sample of Swedish dairy farmers, obtained from the Swedish Farm Economic Survey, complemented with survey information about their perceived use and non-use values in farm animal welfare. The findings suggest that farm economic outcome is significantly associated with motivation in terms of use values, but not so much with motivation in terms of non-use values. This is interesting from a policy point of view, because it indicates that farmers with different approaches to farm animal welfare may experience different economic outcomes for their farms. Findings can, for instance, be used to strengthen farmers’ engagement in various private quality assurance standards, which generally focus on values of non-use type, by pointing to that realisation of such values will not impair the economic outcome of the farms. Moreover, findings also suggest that farmers’ economic incentives for engagement in such standards may need to be further strengthened in order to become more attractive, as findings point to that a focus on non-use values generally is not associated with more favourable economic outcomes.

Hedgers located far from organized commodity exchanges suffer a mismatch between their local prices and exchange prices. Futures and options traded on the exchange may still be valuable to distant hedgers, but only to the extent that basis risk is small. Forward contracting allows hedgers to manage risk using a local delivery price, but the Commodity Futures Trading Commission has long banned the sale of off-exchange options, limiting the opportunities available to hedgers. Recently, agricultural trade options (ATOs) have been introduced as over-the-counter option products designed specifically for hedgers. To date, ATOs have found little interest from potential sellers, but the potential demand for these options may be substantial. This study develops a methodology for measuring the potential value of ATOs. It describes and quantifies the demand for corn ATOs by dairy farms in Pennsylvania and estimates the value these farms might place on ATO contracts offered locally.

This paper explores the role of managerial ability in determining efficiency in New York dairy farms. Using an unbalanced panel of farm data from 1993 through 2004, we estimate outputoriented technical efficiencies using stochastic distance frontier functions. We find that both lagged net farm income and farmers’ own estimates of the value of their labor and management as proxies for managerial ability impact measured efficiency. Efficiency increases with operator education, farm size, and extended participation in a farm management program, but decreases with operator age.

As with most agricultural industries, the U.S. dairy industry has evolved into a structure including fewer yet larger firms. In Louisiana, total milk production has declined along with dairy farm numbers since 1972. This study addresses the impact of alternative policies, macroeconomic factors, and technology on the structure of the Louisiana dairy industry using a micro-data non-stationary Markov chain analysis. Results indicate that a number of factors have affected the structure of the industry in Louisiana, including but not limited to prices, milk supply reduction programs, technology and interest rates.

This study was conducted to determine the seroprevalence of anti-Neospora caninum antibodies and to investigate the risk factors related to seroprevalence in dogs from urban and rural areas with distinct economic activities (milk and coffee production) in Minas Gerais state, Brazil. For this purpose, blood samples from 703 dogs were collected and questionnaires addressing epidemiological aspects were completed by dog-owners. The sera were analysed for anti-N. caninum antibodies by indirect fluorescent antibody tests (IFAT ⩾ 1:50). Association between epidemiological aspects and seropositivity in dogs was evaluated with multivariate logistic regression models. A total of 80 (11·4%) dogs tested positive for N. caninum. In the multivariate logistic regression models, dogs aged >4 years, dogs used as guard dogs, dogs that spontaneously hunt, and history of bovine abortion were found to be greater risk factors for canine N. caninum infection. When we considered only dogs from rural areas, an association with seroprevalence was seen for milk farms, dogs not fed with commercial food, dogs that hunt, and dogs used as guard dogs.

Maximum entropy ecological niche modelling and spatial scan statistic were utilized to predict the geographical range and to investigate clusters of infections for Neospora caninum and Coxiella burnetii in dairy cattle farms in Catalonia, northeastern Spain, using the Maxent and SaTScan programs, respectively. The geographical distribution of Neospora and Coxiella with the highest level of probability (P > 0·60) covers central Catalonia and spreads towards northeastern Catalonia which contains a high concentration of dairy cattle farms. The most important environmental factor that contributed to the ecological niche modelling was precipitation of driest month followed by elevation. Significant clusters (P < 0·001) were detected for Neospora and Coxiella infections in the western and eastern regions of Catalonia, respectively.

The aim of this paper was to explore if, and in that case how, various preventive measures against mastitis influenced the whole-farm economic outcome, measured as technical efficiency, of a sample of specialised dairy farms in Sweden. In particular, the paper aimed at analysing whether a change to preventive measures applied by fully efficient farms would be a way for inefficient farms to become fully efficient. First, technical efficiency was assessed for each farm in the sample based on farm-level accounting data and the data envelopment analysis. In a second step, the effects of preventive measures against mastitis (collected through a mail questionnaire) on technical efficiency were assessed with logistic regression. Keeping cows in a loose-housing barn, stimulating udders manually during milking, and having cows standing on clean bedding during milking were found to significantly increase the probability of a farm being fully efficient. Once the farmer considers the somatic cell count (SCC) to be too high, undertaking measures such as contacting a veterinarian, checking overall hygiene routines, and culling cows with high SCC were found to significantly increase the probability of a farm being fully efficient. Thus, these measures may be plausible targets for advisory services aimed at assisting farmers to become fully efficient, especially if they are confirmed in future studies. Several common preventive measures against mastitis, that is, choice of bedding material, frequency of cleaning stalls, pre-milking, post-milking teat disinfection, applying a milking order based on the SCC of cows, and milking high-SCC cows with a separate cluster, were found to have no statistically significant effect on farm economic outcome. However, these measures may still be valuable for non-economic goals, such as increased animal welfare, and the results imply that they can be implemented without negative impact on the economic performance of the farm.

EPA's new restrictions on land application of manure nutrients by concentrated animal feeding operations (CAFOs) could decrease the net return of 6–17% of the medium and large dairy farms with lagoon systems in the southwestern United States. Many of the other dairy CAFOs in the region could achieve higher net income under the restrictions if they reduce feed costs by better utilizing manure and expanding homegrown feed production.