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The Effects of the Dairy Termination Program on Live Cattle and Wholesale Beef Prices

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  • John M. Marsh

Abstract

Distributed lags were used to estimate the beef price effects of the 1986-87 Dairy Termination Program. The model estimated the direct effects of dairy slaughter and indirect effects of fed and nonfed supply response on the feeder, slaughter, and carcass markets. The results showed that, without offsetting U.S. Department of Agriculture red meat purchases, price reductions would have ranged from about $1.60 to $4.00 per hundredweight but were reduced by one-half with the red meat purchases. If the Department of Agriculture had scheduled dairy slaughter more evenly over eighteen months, price reductions would have been 34% less.

Suggested Citation

  • John M. Marsh, 1988. "The Effects of the Dairy Termination Program on Live Cattle and Wholesale Beef Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 919-928.
    • Handle: RePEc:oup:ajagec:v:70:y:1988:i:4:p:919-928.
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    File URL: http://hdl.handle.net/10.2307/1241934
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    Cited by:

    1. Young, Linda M. & Marsh, John M., 1997. "Live Cattle Trade Between the United States and Canada: Effects of Canadian Slaughter Capacity and Health Regulations," Research Discussion Papers 256821, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    2. Sayed H Saghaian & Gokhan Ozertan & Hasan Tekguc, 2013. "Beef and milk price links in Turkey," Economics Bulletin, AccessEcon, vol. 33(4), pages 2607-2616.
    3. Paudel, Krishna P. & Gauthier, Wayne M. & Hall, Larry M. & Westra, John V., 2006. "Willingness to Participate in Dairy Programs to Reduce Manure Related Problems in Louisiana's Major Dairy Production Region," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35259, Southern Agricultural Economics Association.
    4. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.

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