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The Adoption and Profitability of rbST on Connecticut Dairy Farms

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  • Jeremy D. Foltz
  • Hsiu-Hui Chang

Abstract

This work estimates probit and tobit models of the adoption of recombinant bovine somatotropin (rbST) on Connecticut dairy farms and then endogenizes that adoption in estimates of milk production and farm profit rates. The work improves on the current literature by allowing the rbST decision to be both continuous and contingent on other technology adoption decisions. The results show that larger farms, with more productivity technologies, and with younger, more educated farmers, are more likely to adopt rbST. While rbST is shown to significantly increase milk production, there is no evidence that it increases profits on a per cow basis. Copyright 2002, Oxford University Press.

Suggested Citation

  • Jeremy D. Foltz & Hsiu-Hui Chang, 2002. "The Adoption and Profitability of rbST on Connecticut Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1021-1032.
    • Handle: RePEc:oup:ajagec:v:84:y:2002:i:4:p:1021-1032
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00364
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    1. Saha Atanu & H. Alan Love & Robert Schwart, 1994. "Adoption of Emerging Technologies Under Output Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 836-846.
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