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Economic Effects Of U.S. Dairy Programs

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  • Helmberger, Peter G.
  • Chen, Yu-Hui

Abstract

Based on econometric analysis, this article estimates effects of terminating the milk order system and milk price support, singly and together, over the period 1966-90. Since 1980, milk orders have raised the national blend price by 1-2%; price support has raised the blend price to well above the market clearing price, by over 21% in 1983. Short- and long-run benefits and costs are estimated for various policy options under 1990 conditions.

Suggested Citation

  • Helmberger, Peter G. & Chen, Yu-Hui, 1994. "Economic Effects Of U.S. Dairy Programs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-14, December.
    • Handle: RePEc:ags:jlaare:30750
    DOI: 10.22004/ag.econ.30750
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    References listed on IDEAS

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    1. Charles W. Bausell & Scott L. Smith & David A. Belsley, 1992. "An Analysis of 1980s Dairy Programs and Some Policy Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 605-616.
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    Cited by:

    1. Jean‐Paul Chavas & Thomas L. Cox & Edward Jesse, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics, International Association of Agricultural Economists, vol. 18(1), pages 1-19, January.
    2. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 2005. "Efficiency losses in milk marketing boards - the importance of exports," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 77-97.
    3. Alston, Julian M. & Sumner, Daniel A. & Balagtas, Joseph Valdes & Brunke, Henrich, 2004. "Economic Implications Of The Australia-U.S. Free Trade Agreement For U.S. Dairy Markets And Domestic Dairy Farm Programs," 2004 Annual meeting, August 1-4, Denver, CO 20164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Alston, Julian M. & Balagtas, Joseph Valdes & Brunke, Henrich & Sumner, Daniel A., 2006. "Supply and demand for commodity components: implications of free trade versus the AUSFTA for the US dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 1-22, June.
    5. Kuga, Nobunori & Vavra, Pavel & Anton, Jesus & Dewbre, Joe, 2003. "Trade And Welfare Effects Of Dairy Price Support Measures," 2003 Annual meeting, July 27-30, Montreal, Canada 21951, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Glenn Furton & Adam Martin, 2019. "Beyond market failure and government failure," Public Choice, Springer, vol. 178(1), pages 197-216, January.
    7. Parcell, Joe L. & Kastens, Terry L. & Dhuyvetter, Kevin C. & Schroeder, Ted C., 2000. "Agricultural Economists' Effectiveness in Reporting and Conveying Research Procedures and Results," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 173-182, October.
    8. D’Antoni, Jeremy M. & Mishra, Ashok K. & Blayney, Donald, 2013. "Assessing participation in the Milk Income Loss Contract program and its impact on milk production," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 243-254.
    9. Vavra, Pavel & Kuga, Nobunori & Anton, Jesus & Dewbre, Joe, 2003. "Trade Effects of Dairy Pricing Arrangements," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25862, International Association of Agricultural Economists.
    10. Leathers, Howard D., 2007. "Orderly Marketing in Agriculture Revisited," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-12, October.

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    Keywords

    Agricultural and Food Policy;

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