IDEAS home Printed from https://ideas.repec.org/a/ags/jasfmr/190701.html
   My bibliography  Save this article

Impact of Milk Income Loss Contract (MILC) and Section 179 Expensing on Rates of Return for Alternative Dairy Systems

Author

Listed:
  • Eberle, Phillip
  • Moody, Darren
  • Rendleman, C.
  • Peterson, William

Abstract

The impact of the Milk Income Loss Contract (MILC) and Section 179 expensing on internal rate of returns (IRR) for three dairy systems, a 120-cow grazing, a 120-cow conventional, and 600-cow concentrated was evaluated. With MILC, the grazing and conventional systems had higher IRRs. Without MILC, the 600- cow dairy had the highest IRR. Without Sec. 179, IRRs declined proportionally more for grazing and conventional systems.

Suggested Citation

  • Eberle, Phillip & Moody, Darren & Rendleman, C. & Peterson, William, 2006. "Impact of Milk Income Loss Contract (MILC) and Section 179 Expensing on Rates of Return for Alternative Dairy Systems," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2006, pages 1-8.
    • Handle: RePEc:ags:jasfmr:190701
    DOI: 10.22004/ag.econ.190701
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/190701/files/255_Eberle.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.190701?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bailey, Kenneth W., 2005. "Dairy Programs Face Difficult Future," Staff Paper Series 18849, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    2. Tauer, Loren W., 1993. "Short-Run And Long-Run Efficiencies Of New York Dairy Farms," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), pages 1-9, April.
    3. Short, Sara D. & Livezey, Janet S., 2004. "Characteristics and Production Costs," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-2, April.
    4. Dartt, Barbara & Schwab, Gerald D., 2001. "Crops And Livestock Budgets Estimates For Michigan," Agricultural Economic Report Series 10948, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hennessy, David A., 2012. "Economic Aspects of Agricultural and Food Biosecurity," Staff General Research Papers Archive 35015, Iowa State University, Department of Economics.
    2. Tauer, Loren W. & Mishra, Ashok K., 2005. "U.S. Dairy Farm Cost Efficiency," Working Papers 127079, Cornell University, Department of Applied Economics and Management.
    3. Martin Nordin & Sören Höjgård, 2017. "An evaluation of extension services in Sweden," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 51-60, January.
    4. Tauer, Loren W., 2006. "When to Get In and Out of Dairy Farming: A Real Option Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 339-347, October.
    5. Mkhabela, Thulasizwe S. & Mndeme, S.H., 2010. "The cost of producing milk in the KwaZulu-Natal Midlands of South Africa: a cost-curve approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(1), pages 1-21, March.
    6. Ford, Stephen A. & Shonkwiler, John Scott, 1994. "The Effect Of Managerial Ability On Farm Financial Success," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), pages 1-8, October.
    7. Finneran, E. & Crosson, p., 2013. "Effects of scale, intensity and farm structure on the income efficiency of Irish beef farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(4), pages 1-12, July.
    8. Shadbolt, Nicola & Siddique, Muhammad Imran & Tozer, Peter, 2019. "Pr - Measuring How Nz Dairy Farmers React To Volatile Prices By Analysing Farmer Responses Over A Period Of Time Using Panel Data," 22nd Congress, Tasmania, Australia, March 3-8, 2019 345899, International Farm Management Association.
    9. Tauer, Loren W. & Mishra, Ashok K., 2006. "Can the small dairy farm remain competitive in US agriculture?," Food Policy, Elsevier, vol. 31(5), pages 458-468, October.
    10. Nordin, Martin & Hojgard, Soren, 2015. "Advisory services for nutrient utilisation," 2015 Conference, August 9-14, 2015, Milan, Italy 212586, International Association of Agricultural Economists.
    11. Tozer, Peter R & Siddique, Muhammad Imran, 2016. "Ownership, region, system or ? – What leads to efficiency?," 2016 Conference, August 25-26, Nelson, New Zealand 260808, New Zealand Agricultural and Resource Economics Society.
    12. Tozer, Peter, 2017. "Pr - Impact Of Feeding Systems On The Profit And Efficiency Of New Zealand Dairy Farms," 21st Congress, Edinburgh, Scotland, July 2-7, 2017 345807, International Farm Management Association.
    13. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    14. Ling, K. Charles, 2005. "Dairy Cooperative Growth Challenges: Technology, Ingredients (Proteins) and Equity Financing," Research Reports 280094, United States Department of Agriculture, Rural Development.
    15. Karagiannis, Giannis & Tzouvelekas, Vangelis, 2001. "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 168-178, October.
    16. Isabelle Piot-Lepetit & Dominique Vermersch, 1993. "Modelling the future of cereal yields : from technical ineffficiency until price efficiency [[Modélisation de l'évolution des rendements céréaliers : de l'inefficacité technique à l'efficacité prix," Post-Print hal-02851137, HAL.
    17. Tauer, Loren W., 1994. "Do New York Dairy Farmers Maximize Profits?," Staff Papers 121318, Cornell University, Department of Applied Economics and Management.
    18. Kelly, E & Shalloo, L & Geary, U & Kinsella, A. & Thorne, F & Wallace, M, 2013. "An analysis of the factors associated with technical and scale efficiency of Irish dairy farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(3), pages 1-11, April.
    19. Moreira, Victor H. & Bravo-Ureta, Boris E. & Dunner, Roberto & Vidal, Ricardo, 2012. "Total Factor Productivity Change in Dairy Production in Southern Chile: Is Farm Size Significant?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126895, International Association of Agricultural Economists.
    20. Anthony D. Becker & Rebecca P. Judge, 2012. "Measuring the Effects of Decoupled Payments on Indica Rice Production Under the 1996 and 2002 Farm Bills," Working Papers 201201, St. Olaf College, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jasfmr:190701. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/asfmrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.