Econometric Analysis of Farmer Participation in the Dairy Termination Program in North Carolina and Virginia

H. Frederick Gale

Journal of Agricultural and Applied Economics, 1990, vol. 22, issue 1, 123-132

Abstract: Farm-level data are used to estimate equations explaining the probability of bidding and the level of the bid for the 1986 Dairy Termination Program. Participation was attractive to older farmers, to those who were not planning to transfer the farm to a family member, to less experienced farmers, and to those using less sophisticated management techniques. Schooling, off-farm work, and nonfarm experience did not have significant effects. The participation pattern suggests that the long-term effects of the program on milk supply are small.

Date: 1990
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