Scale Neutrality of Bovine Somatotropin: Ex Ante Evidence from the Southeast

Henry Kinnucan, Upton Hatch, Joseph J. Molnar and Meenakshi Venkateswaran

Journal of Agricultural and Applied Economics, 1990, vol. 22, issue 2, 1-12

Abstract: Bovine somatotropin (BST), a new technology capable of enhancing a cow's ability to produce milk by 7-23 percent, is expected to be available for commercial use soon. Ex ante survey procedures are used to determine the potential effect of BST on the size distribution of dairy farms in the Southeast. Results of logit analysis indicate a positive link between farm size and (1) farmers' knowledge of BST and (2) intentions to adopt early, suggesting BST will not be scale neutral. An estimated “price elasticity” of -1.8 to -2.1 indicates an elastic demand for the input Price, therefore, may be an effective instrument for attenuating the scale bias.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:22:y:1990:i:02:p:1-12_00

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