Estimating Comparative Costs of Producing Milk Among the Southern States

Blair J. Smith

Journal of Agricultural and Applied Economics, 1974, vol. 6, issue 1, 221-228

Abstract: The farm price of much of the milk produced in the South has been under government regulation for a long time. Two principal economic criteria have been used as bases for setting minimum producer prices: (1) costs of production in the regulated area, and (2) the costs of obtaining milk from sources outside the area. Which of these criteria was paramount at any particular time and location was related to the effectiveness with which barriers to the inflow of milk could be maintained, and the political power of milk producer groups relative to other interests.

Date: 1974
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