Optimal Production Schedules for a Representative Farm Under Alternative Seasonal Milk Pricing Patterns of the Base-Excess Plan

Abstract

Production of milk under various pricing policies were examined for a representative dairy farm operating under the base-excess plan. Three pricing scenarios were examined to determine calving schedule, milk production, and shadow prices. The period May-July was most profitable, and December-January the least profitable months for calving, under the base-excess program in the Mid-Atlantic Order. The representative producer responded to the pricing policies by shifting production in response to changes in the seasonal patterns of the base and excess prices.

The Effects of Alternative Seasonal Price Differentials on Milk Production in New York

“…The principal objective of this paper is to analyze anticipated production response to several hypothetical levels of seasonal price differentials. This research differs from the majority of previous research (i.e., Hall, et al;Prindle and Livezey;Caine and Stonehouse;and the New York-New Jersey Milk Market Administrator's Office, 1984) in that it focuses on aggregate rather than individual production response to different seasonal price levels. The analysis is based on producer perceptions elicited from a mail survey sent to randomly selected dairy farmers in New York State, and farm record data on survey respondents obtained from the New York-New Jersey federal milk marketing order.…”