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Technology Adoption Decisions in Dairy Production and the Role of Herd Expansion

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  • El-Osta, Hisham S.
  • Morehart, Mitchell J.

Abstract

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.

Suggested Citation

  • El-Osta, Hisham S. & Morehart, Mitchell J., 1999. "Technology Adoption Decisions in Dairy Production and the Role of Herd Expansion," Agricultural and Resource Economics Review, Cambridge University Press, vol. 28(1), pages 84-95, April.
    • Handle: RePEc:cup:agrerw:v:28:y:1999:i:01:p:84-95_00
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    1. Nyaupane, Narayan P. & Gillespie, Jeffrey M. & Paudel, Krishna P., 2012. "Economic Impacts of Adoption of Best Management Practices by Crawfish Producers: The Role of the Environmental Quality Incentives Program," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 247-259, August.
    2. Voss, J. & Schaper, C. & Spiller, A. & Theuvsen, L., 2009. "Innovationsverhalten in der deutschen Landwirtschaft – Empirische Ergebnisse am Beispiel der Biogasproduktion," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 44, March.
    3. Lupín, Beatriz & Rodríguez, Elsa Mirta M., 2012. "Quality attributes and socio-demographic factors affecting channel choices," Nülan. Deposited Documents 1605, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    4. Nyaupane, Narayan P. & Gillespie, Jeffrey M., 2009. "The Influences Of Land Tenancy And Rotation Selection On Crawfish Farmers’ Adoption Of Best Management Practices," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46174, Southern Agricultural Economics Association.
    5. Burfisher, Mary E. & Hanson, Kenneth & Hopkins, Jeffrey & Somwaru, Agapi, 2004. "Global Agriculural Reform and U.S. Agricultural Adjustment Capacity," Conference papers 331303, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Dibba, Lamin & Zeller, Manfred & Diagne, Aliou & Nielsen, Thea, 2015. "How Accessibility to Seeds Affects the Potential Adoption of an Improved Rice Variety: The Case of The New Rice for Africa (NERICA) in The Gambia," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(1), pages 1-26, February.
    7. Läpple, Doris & Renwick, Alan & Thorne, Fiona, 2015. "Measuring and understanding the drivers of agricultural innovation: Evidence from Ireland," Food Policy, Elsevier, vol. 51(C), pages 1-8.
    8. Yoo, Do-il, "undated". "Farm Heterogeneity in Biotechnology Adoption with Risk and Learning: an Application to U.S. Corn," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170656, Agricultural and Applied Economics Association.
    9. Tzemi, Domna & Breen, James P., 2016. "Examining Irish farmers’ awareness of climate change and the factors affecting the adoption of an advisory tool for the reduction of GHG emissions," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236331, Agricultural Economics Society.
    10. Hisham S. El-Osta, 2016. "Farmland Ownership and Its Impact on the Debt Servicing Capacity Among U.S. Married-Couple Farm Households," Applied Economics and Finance, Redfame publishing, vol. 3(4), pages 190-206, November.
    11. Lupin, Beatriz & Rodriguez, Elsa M., 2012. "Quality attributes and socio-demographic factors affecting channel choices," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126372, International Association of Agricultural Economists.
    12. Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
    13. Hyland, John J. & Heanue, Kevin & McKillop, Jessica & Micha, Evgenia, 2018. "Factors influencing dairy farmers’ adoption of best management grazing practices," Land Use Policy, Elsevier, vol. 78(C), pages 562-571.
    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. Fabian Frick & Johannes Sauer, 2021. "Technological Change in Dairy Farming with Increased Price Volatility," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 564-588, June.
    16. Kasenge, Valentine & Taylor, Daniel B. & Bonabana-Wabbi, Jackline, 2006. "A Limited Dependent Variable Analysis of Integrated Pest Management Adoption in Uganda," 2006 Annual meeting, July 23-26, Long Beach, CA 21040, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Do‐il Yoo & Jean‐Paul Chavas, 2023. "Dynamic modeling of biotechnology adoption with individual versus social learning: An application to US corn farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 148-166, January.
    18. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(2), pages 1-15, October.
    19. Bortamuly, Alin Borah & Goswami, Kishor, 2015. "Determinants of the adoption of modern technology in the handloom industry in Assam," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 400-409.
    20. Conor Keelan & Fiona Thorne & Paul Flanagan & Carol Newman & Ewen Mullins, 2008. "Adoption of GM Technology at Farm Level," Working Papers 0810, Rural Economy and Development Programme,Teagasc.
    21. Fernandez-Cornejo, Jorge & Livingston, Michael J. & Mitchell, Lorraine & Wechsler, Seth, 2014. "Genetically Engineered Crops in the United States," Economic Research Report 164263, United States Department of Agriculture, Economic Research Service.
    22. Lamin Dibba & Manfred Zeller & Aliou Diagne, 2017. "The impact of new Rice for Africa (NERICA) adoption on household food security and health in the Gambia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(5), pages 929-944, October.
    23. 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.

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