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Optimal Supply Rules in the Tart Cherry Industry

Author

Listed:
  • Miller, Steven R.
  • Hoehn, John P.
  • Thornsbury, Suzanne
  • Meyer, Jenny

Abstract

This report examines optimum supply formula (OSF) in the tart cherry industry. The OSF is a tool for stabilizing market prices as authorized by a federal market order (FMO). The current OSF sets the optimum supply volume (OSV), or free sales of tart cherries in a given harvest year equal to the average sales of the three prior years plus 10 percent. This report evaluates the current OSF relative to several alternative formulations. The analysis reviews data to identify sources of market stability, analyzes the demands for tart cherries and compares the current OSF to the alternatives.

Suggested Citation

  • Miller, Steven R. & Hoehn, John P. & Thornsbury, Suzanne & Meyer, Jenny, 2012. "Optimal Supply Rules in the Tart Cherry Industry," Staff Paper Series 125083, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:125083
    DOI: 10.22004/ag.econ.125083
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