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The Potential Cost to New Zealand Dairy Farmers from the Introduction of Nitrate-Based Stocking Rate Restrictions

Mark Neal (), William Fulkerson, Gil Levy, Meryl Wastney, Bruce S. Thorrold, Chris Palliser, Pierre Beukes and Chris Folkers

No 25620, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

Abstract: Introducing a stocking rate restriction is one possible course of action for regulators to improve water quality where it is affected by nitrate pollution. To determine the impact of a stocking rate restriction on a range of New Zealand dairy farms, a whole-farm model was optimised with and without a maximum stocking rate of 2.5 cows per hectare. Three farm systems, which differ by their level of feed-related capital, were examined for the changes to the optimal stocking rate and optimal level of animal milk production genetics when utility was maximised. The whole-farm model was optimised through the use of an evolutionary algorithm called differential evolution. The introduction of a stocking rate restriction would have a very large impact on the optimally organised high feed-related capital farm systems, reducing their certainty equivalent by almost half. However, there was no impact on the certainty equivalent of low feed-related capital systems.

Keywords: Environmental Economics and Policy; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 16
Date: 2006
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Working Paper: The potential cost to New Zealand dairy farmers from the introduction of nitrate-based stocking rate restrictions (2005) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25620

DOI: 10.22004/ag.econ.25620

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