Do Efficient Dairy Producers Purchase Quota?

Rebecca Elskamp and Getu Hailu

No 148901, Working Papers from Canadian Agricultural Trade Policy Research Network

Abstract: We examine the effect of farm level cost and scale efficiencies on dairy quota exchanges in Ontario. A constrained profit maximization framework is used to illustrate the role of cost efficiency in quota exchanges (i.e., sales and purchases). Using a multinomial logit model, where net quota buyers and net quota sellers are identified our empirical results indicate that variations in cost efficiency do not have a significant effect on purchases milk production quota, whereas scale efficiency does. Younger farmers, farms with underutilized barns space and farms with a recent history of quota purchase tend to buy milk production quota.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; Farm Management (search for similar items in EconPapers)
Pages: 20
Date: 2013-03
New Economics Papers: this item is included in nep-agr and nep-eff
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Citations: View citations in EconPapers (1)

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Working Paper: Do Efficient Dairy Producers Purchase Quota? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:catpwp:148901

DOI: 10.22004/ag.econ.148901

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