IMPACT OF REDUCING FEDERAL ORDER CLASS I DIFFERENTIAL ON REPRESENTATIVE TEXAS AND NEW MEXICO DAIRY FARMS

The General Accounting Office (GAO) recommended that the USDA substantially reduce or eliminate the extent of price discrimination practiced under federal milk marketing orders. The purpose of this study was to quantify the impacts of alternative means of implementing the GAO proposal on the economic viability of Texas and New Mexico dairy farms. Five dairy farms were simulated for six years under the current dairy policy and five alternative proposals. Results of the analyses indicate that large New Mexico dairies can remain economically viable under all of the alternatives. On the other hand, federal order policy changes would accelerate the loss of equity for moderate size Texas dairy farms.


Issue Date:
1991-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/30058
Published in:
Southern Journal of Agricultural Economics, Volume 23, Number 2
Page range:
19-27
Total Pages:
9




 Record created 2017-04-01, last modified 2017-08-24

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