TECHNOLOGY ADOPTION DECISIONS IN DAIRY PRODUCTION AND THE ROLE OF HERD EXPANSION

Technology adoption in dairy production allows for higher milk yield and lower per-unit costs. The importance of herd expansion and other factors to adoption was examined using a multinomial logit model and data from the USDA's 1993 Farm Costs and Returns Survey. Predicted probabilities of adoption were used to simulate the effect of herd expansion on milk production. Results identified age, size, and specialization in dairy production as important in increasing the likelihood of adopting a capital-intense technology. Education and size of operation positively impacted the decision to adopt a management-intense technology. Age, education, credit reserves, size, and increased usage of hired labor positively influenced the decision to adopt a combined capital-and management-intense technology.


Issue Date:
1999-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31495
Published in:
Agricultural and Resource Economics Review, Volume 28, Number 1
Page range:
84-95
Total Pages:
12




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

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