THE EMPIRICAL IMPACT OF BOVINE SOMATOTROPIN ON A GROUP OF NEW YORK DAIRY FARMS

The empirical impact of rBST was measured for 211 dairy farms using 1993-95 data. Farms applying rBST on roughly half of their herds saw, on average, a net increase of about 1,300 pounds of milk per cow per year. The impact on profits, was, however, not statistically different from zero.Livestock Production/Industries,

THE EMPIRICAL IMPACT OF BOVINE SOMATOTROPIN ON A GROUP OF NEW YORK DAIRY FARMS

WP 1998-03 April 1998Data from a panel of New York Dairy farms were used to estimate rbST adoption functions, and to measure the impact of rbST on milk output and profitability per cow. Adoption results are consistent with previous rbST adoption studies. Farm size, productivity and education of the principal operator are the most important explanatory variables influencing adoption. The use of rbST was found to significantly increase milk output per cow net of other explanatory variables, correcting for self-selection with respect to rbST use. The impact on profits, was, however, not statistically different from zero at any conventional statistical significance level.Funding for Stefanides was provided by the Andrew W. Mellon Foundation

SUCCESS IN MAXIMIZING PROFITS AND REASONS FOR PROFIT DEVIATION ON DAIRY FARMS

WP 1997-05 April 1997The Weak Axiom of Profit Maximization (WAPM) was used to test how successful each of 70 individual New York State dairy farms was in maximizing profits using nine years of data. The netput vectors were corrected for technological change using nonparametric indices that do not require the assumption of profit maximization nor any functional form for the underlying technology. These technology indices are consistent with the nonparametric assumptions used in the WAPM tests. The average negative WAPM deviation over the 70 farms was .20, indicating that on average these farms could have selected available netput vectors that would have increased profits by 20 percent of total receipts. A tobit regression showed that the available characteristics on these farms explained very little of the variability in their abilities to select the best netput vectors. Yet, increased age and additional education increased the ability to select the best netput vector

ESTIMATING INDIVIDUAL FARM SUPPLY AND DEMAND ELASTICITIES USING NONPARAMETRIC PRODUCTION ANALYSIS

WP 1997-03 March 1997Nonparametric production methods are used to estimate individual supply response and input demand elasticities for a group of New York dairy farm businesses. The ranges of estimates from the upper and lower bounds are extremely large, probably because only nine observations (years) are available for each farm

THE EMPIRICAL IMPACT OF BOVINE SOMATOTROPIN ON A GROUP OF NEW YORK DAIRY FARMS

The empirical impact of rBST was measured for 211 dairy farms using 1993-95 data. Farms applying rBST on roughly half of their herds saw, on average, a net increase of about 1,300 pounds of milk per cow per year. The impact on profits, was, however, not statistically different from zero

THE EMPIRICAL IMPACT OF BOVINE SOMATOTROPIN ON A GROUP OF NEW YORK DAIRY FARMS

Data from a panel of New York Dairy farms were used to estimate rbST adoption functions, and to measure the impact of rbST on milk output and profitability per cow. Adoption results are consistent with previous rbST adoption studies. Farm size, productivity and education of the principal operator are the most important explanatory variables influencing adoption. The use of rbST was found to significantly increase milk output per cow net of other explanatory variables, correcting for self-selection with respect to rbST use. The impact on profits, was, however, not statistically different from zero at any conventional statistical significance level

ESTIMATING INDIVIDUAL FARM SUPPLY AND DEMAND ELASTICITIES USING NONPARAMETRIC PRODUCTION ANALYSIS

Nonparametric production methods are used to estimate individual supply response and input demand elasticities for a group of New York dairy farm businesses. The ranges of estimates from the upper and lower bounds are extremely large, probably because only nine observations (years) are available for each farm

ESTIMATING INDIVIDUAL FARM SUPPLY AND DEMAND ELASTICITIES USING NONPARAMETRIC PRODUCTION ANALYSIS

Nonparametric production methods are used to estimate individual supply response and input demand elasticities for a group of New York dairy farm businesses. The ranges of estimates from the upper and lower bounds are extremely large, probably because only nine observations (years) are available for each farm.Demand and Price Analysis,

SUCCESS IN MAXIMIZING PROFITS AND REASONS FOR PROFIT DEVIATION ON DAIRY FARMS

The Weak Axiom of Profit Maximization (WAPM) was used to test how successful each of 70 individual New York State dairy farms was in maximizing profits using nine years of data. The netput vectors were corrected for technological change using nonparametric indices that do not require the assumption of profit maximization nor any functional form for the underlying technology. These technology indices are consistent with the nonparametric assumptions used in the WAPM tests. The average negative WAPM deviation over the 70 farms was .20, indicating that on average these farms could have selected available netput vectors that would have increased profits by 20 percent of total receipts. A tobit regression showed that the available characteristics on these farms explained very little of the variability in their abilities to select the best netput vectors. Yet, increased age and additional education increased the ability to select the best netput vector

THE EMPIRICAL IMPACT OF BOVINE SOMATOTROPIN ON A GROUP OF NEW YORK DAIRY FARMS

Data from a panel of New York Dairy farms were used to estimate rbST adoption functions, and to measure the impact of rbST on milk output and profitability per cow. Adoption results are consistent with previous rbST adoption studies. Farm size, productivity and education of the principal operator are the most important explanatory variables influencing adoption. The use of rbST was found to significantly increase milk output per cow net of other explanatory variables, correcting for self-selection with respect to rbST use. The impact on profits, was, however, not statistically different from zero at any conventional statistical significance level.Livestock Production/Industries,