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Promotional Efforts Vs. Economic Factors As Drivers Of Producers' Decisions To Expand Or Start A Dairy

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  • Eberle, Phillip R.
  • Milliman, Clinton
  • Peterson, William C.
  • Rendleman, C. Matthew

Abstract

States have developed programs to expand or attract new dairies. Whether these programs played a role in producers' decisions is evaluated. A multi-state survey of milk producers was conducted to identify factors affecting producers' decisions to expand dairy. Results are presented by state and size of dairy. The public promotion and support category was ranked the lowest in importance for dairy growth, but individual items within the category were rated as positive. Of the 42 items rated, extension service received the tenth highest rating of importance. Assistance in obtaining licenses and permits, and guaranteed loans had ratings implying a positive impact, but to a lesser extend than extension and university research. Market for milk and co-products was ranked the most important. The second most important category was resource availability and resource prices, but this ranking varied by size. Small dairies ranked family and community ties second and large dairies ranked regulatory environment as second. Illinois milk producers compared to other state producers had perceived disadvantages with respect to land prices, utility costs, climate and ease of regulatory compliance.

Suggested Citation

  • Eberle, Phillip R. & Milliman, Clinton & Peterson, William C. & Rendleman, C. Matthew, 2004. "Promotional Efforts Vs. Economic Factors As Drivers Of Producers' Decisions To Expand Or Start A Dairy," 2004 Annual meeting, August 1-4, Denver, CO 20140, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20140
    DOI: 10.22004/ag.econ.20140
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    1. 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).
    2. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
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    1. Herndon, Cary W., Jr. & Davis, Brandon L. & Parkhurst, Gregory M., 2005. "Do MILC Program Payments Affect Milk Supply Response Across Regions of the U.S.?," 2005 Annual meeting, July 24-27, Providence, RI 19438, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Herndon, Cary W., Jr. & Looney, John Mark, Jr., 2008. "Does the MILC program Affect Milk Supply Response in Individual States of the United States?," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6782, Southern Agricultural Economics Association.

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