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The Present Value of Investments in Milk Quota in the Netherlands

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  • Zijlstra, Jelle

Abstract

The maximum price of milk quota is the price a dairy farmer can afford to pay based on the expected future cash flows. This price strongly depends on the variable costs per additional kilogram of milk, the marginal income tax rate and the duration of the EC quota system. Based on a duration of 20 years, dairy farmers realizing low variable costs and facing high tax rates are in a good posisition to compete succesfully on the milk quota market.

Suggested Citation

  • Zijlstra, Jelle, 1993. "The Present Value of Investments in Milk Quota in the Netherlands," 9th Congress, Budapest, Hungary, 1993 346214, International Farm Management Association.
    • Handle: RePEc:ags:ifma93:346214
    DOI: 10.22004/ag.econ.346214
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    Keywords

    Demand and Price Analysis;

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