Location Preference for Risk-Averse Dutch Dairy Farmers Immigrating to the United States

James Richardson (), Brian Herbst, Anthony Duncan, Mark den Besten and Peter van Hoven

Journal of Agricultural and Applied Economics, 2007, vol. 39, issue 3, 735-748

Abstract: Increased environmental regulations and a milk quota that restricts growth have increased the interest in immigration to the United States by Dutch dairy farmers. A risk-based economic analysis of 23 representative U.S. dairy farms versus a representative Dutch farm shows that risk-averse Dutch dairy farmers would prefer to liquidate their dairy farms and invest in a large dairy in Idaho or north Texas. The risk ranking suggested that continuing to farm in the Netherlands rather than immigrating to the United States is preferred over only two of the 23 U.S. representative farms analyzed.

Date: 2007
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