EconPapers    
Economics at your fingertips  
 

Diversions and the Role they play in Determining Order 7 Milk Price

Owen Townsend, Tyler Mark () and Kenneth Burdine

No 252761, 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: The Southeast Order has been milk deficit for over ten years and because of this milk has to be brought in from other orders to meet processor’s demand. Transportation credits provide processors with help to cover transportation costs to bring outside milk into the order. To help keep Class I utilization and support milk prices, relative to orders in the North, Order 7 has low diversion limits. As milk produced within Order 7 has been on a downward trend, milk brought into the order has not increased as consistently. In 2000 milk pooled from farms within the order made up an average of 66% out of the total amount pooled compared to a 2012 average of 43%. The results showed that only Class II diverted pounds had a stastically significant impact on Order 7’s uniform price.

Keywords: Agricultural and Food Policy; Farm Management; Production Economics (search for similar items in EconPapers)
Pages: 26
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://ageconsearch.umn.edu/record/252761/files/SAEA_Diversions.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:saea17:252761

DOI: 10.22004/ag.econ.252761

Access Statistics for this paper

More papers in 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2021-03-28
Handle: RePEc:ags:saea17:252761