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Forage Outsourcing in the Dairy Sector: The Extent of Use and Impact on Farm Profitability

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  • Gillespie, Jeffrey
  • Nehring, Richard
  • Sandretto, Carmen
  • Hallahan, Charles

Abstract

The extent of forage purchasing behavior in milk production and its impact on profitability are analyzed using data from the 2000 and 2005 dairy versions of the Agricultural Resource Management Survey. Forage outsourcing is more common with hay than with silage and haylage, and is more prevalent in the western United States. Though silage and haylage outsourcing is found to impact profitability, the major profitability drivers appear to be farm size and efficiency. Evidence of significant forage contracting is found in the western United States.

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  • Gillespie, Jeffrey & Nehring, Richard & Sandretto, Carmen & Hallahan, Charles, 2010. "Forage Outsourcing in the Dairy Sector: The Extent of Use and Impact on Farm Profitability," Agricultural and Resource Economics Review, Cambridge University Press, vol. 39(3), pages 399-414, October.
    • Handle: RePEc:cup:agrerw:v:39:y:2010:i:03:p:399-414_00
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    Cited by:

    1. Shouhong Xie & Jizhou Zhang & Xiaojing Li & Zhe Chen & Xiaoning Zhang & Xianli Xia, 2023. "Impact of Farmer Participation in Production Chain Outsourcing Services on Agricultural Output Level and Output Risk: Evidence from the Guanzhong Plain, China," Agriculture, MDPI, vol. 13(12), pages 1-18, December.
    2. Xiang Li & Xiaoqin Guo, 2023. "Can Policy Promote Agricultural Service Outsourcing? Quasi-Natural Experimental Evidence from China," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    3. Qiangqiang Zhang & Beibei Yan & Xuexi Huo, 2018. "What Are the Effects of Participation in Production Outsourcing? Evidence from Chinese Apple Farmers," Sustainability, MDPI, vol. 10(12), pages 1-15, November.

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