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Dairy Farm Size, Entry, And Exit In A Declining Production Region

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  • Rahelizatovo, Noro C.
  • Gillespie, Jeffrey M.

Abstract

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.

Suggested Citation

  • Rahelizatovo, Noro C. & Gillespie, Jeffrey M., 1999. "Dairy Farm Size, Entry, And Exit In A Declining Production Region," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(2), pages 1-15, August.
    • Handle: RePEc:ags:joaaec:15372
    DOI: 10.22004/ag.econ.15372
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    1. Stokes, Jeffrey R., 2006. "Entry, Exit, and Structural Change in Pennsylvania's Dairy Sector," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 357-373, October.
    2. Alexander Gocht & Norbert Röder & Sebastian Neuenfeldt & Hugo Storm & Thomas Heckelei, 2012. "Modelling farm structural change: A feasibility study for ex-post modelling utilizing FADN and FSS data in Germany and developing an ex-ante forecast module for the CAPRI farm type layer baseline," JRC Research Reports JRC75524, Joint Research Centre.
    3. Huettel, Silke & Jongeneel, Roelof A., 2008. "Structural Change in the Dairy Sectors of Germany and The Netherlands - A Markov Chain Analysis," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43659, European Association of Agricultural Economists.
    4. Zheng, Yanan & Goddard, Ellen W. & Qiu, Feng, 2018. "Exploring the Effect of Disease Outbreaks on Farm Structure Change: A Dynamic Analysis for Canadian Pig Industry," 2018 Annual Meeting, August 5-7, Washington, D.C. 273801, Agricultural and Applied Economics Association.
    5. Saint-Cyr, Legrand D. F., 2016. "Farm segmentation and agricultural policy impacts on structural change: evidence from France," 149th Seminar, October 27-28, 2016, Rennes, France 244789, European Association of Agricultural Economists.
    6. Isik, Murat, 2004. "The Role Of Environmental Regulation On Concentrations Of U.S. Livestock Sectors," 2004 Annual meeting, August 1-4, Denver, CO 20401, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Legrand D. F. Saint‐Cyr, 2022. "Heterogeneous farm‐size dynamics and impacts of subsidies from agricultural policy: Evidence from France," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 893-923, September.
    8. Rahelizatovo, Noro C. & Gillespie, Jeffrey M., 2002. "Factors Influencing The Implementation Of Best Management Practices In The Dairy Industry," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35241, Southern Agricultural Economics Association.
    9. Landi, Chiara & Stefani, Gianluca & Rocchi, Benedetto & Lombardi, Ginevra V. & Giampaolo, Sabina, 2013. "Determinants of Structural Change in the agricultural sector: An Empirical Analysis of Farm Exit in Tuscany," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149893, Italian Association of Agricultural and Applied Economics (AIEAA).
    10. Peterson, Hikaru Hanawa, 2002. "Geographic Changes In U.S. Dairy Production," 2002 Annual meeting, July 28-31, Long Beach, CA 19792, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Fałkowski, Jan, 2016. "Promoting change or preserving the status quo? - the consequences of dominating local politics by agricultural interests. Some evidence on structural change in Poland during the transition period," 149th Seminar, October 27-28, 2016, Rennes, France 245115, European Association of Agricultural Economists.
    12. Saint-Cyr, Legrand D. F., 2017. "Farm heterogeneity and agricultural policy impacts on size dynamics: evidence from France," Working Papers 258013, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    13. Piet, Laurent, 2008. "The evolution of farm size distribution: revisiting the Markov chain model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44269, European Association of Agricultural Economists.
    14. Mosnier, Claire & Wieck, Christine, 2010. "Determinants of spatial dynamics of dairy production: a review," Discussion Papers 162896, University of Bonn, Institute for Food and Resource Economics.
    15. Fertő, Imre & Bojnec, Štefan & Iwasaki, Ichiro & Shida, Yoshisada, 2024. "Why do corporate farms survive in Central and Eastern Europe?," Agricultural Systems, Elsevier, vol. 218(C).
    16. Unay-Gailhard, İlkay & Bojnec, Štefan, 2016. "Sustainable participation behaviour in agri-environmental measures," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 138, pages 47-58.
    17. Saint-Cyr, Legrand D. F., 2016. "Accounting for farm heterogeneity in the assessment of agricultural policy impacts on structural change," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235778, Agricultural and Applied Economics Association.
    18. Zimmermann, Andrea & Heckelei, Thomas, 2012. "Differences of farm structural change across European regions," Discussion Papers 162879, University of Bonn, Institute for Food and Resource Economics.

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