2009
DOI: 10.1111/j.1574-0862.2009.00418.x
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Small U.S. dairy farms: can they compete?

Abstract: The U.S. dairy industry is undergoing rapid structural change, evolving from a structure including many small farmers in the Upper Midwest and Northeast to one that includes very large farms in new production regions. Small farms are struggling to retain competitiveness via improved management and low-input systems. Using data from USDA's Agricultural Resource Management Survey, we determine the extent of U.S. conventional and pasture-based milk production during 2003-2007, and estimate net returns, scale effi… Show more

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Cited by 34 publications
(22 citation statements)
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References 18 publications
(23 reference statements)
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“…Production economists have typically compared cost and/or profitability of production systems in one of several ways, common methods including (i) using experimental data to develop cost and return estimates for systems and comparing resultant performance measures (Gillespie et al. 2008), (ii) using regression analysis to determine the system impacts on performance measures (McBride and Greene 2009a), and (iii) comparing systems using efficiency measures derived from production frontiers (Nehring et al. 2009).…”
Section: Methodsmentioning
confidence: 99%
“…Production economists have typically compared cost and/or profitability of production systems in one of several ways, common methods including (i) using experimental data to develop cost and return estimates for systems and comparing resultant performance measures (Gillespie et al. 2008), (ii) using regression analysis to determine the system impacts on performance measures (McBride and Greene 2009a), and (iii) comparing systems using efficiency measures derived from production frontiers (Nehring et al. 2009).…”
Section: Methodsmentioning
confidence: 99%
“…Generally, reference is made to the classification of profitability factors such as holding characteristics, economic context, production factor conditions and the relationship of the holdings with their markets (Pretolani, 2003). Generally, the concept of profitability is correlated with competitiveness, which in turn depends on other territorial characteristics ranging from natural resources to production factors and techniques (Bojnec & Ferto, 2009;De Stefano, 2003;Diniz, Katsioloudes, & Fortunas 2006;Nehring, Gillespie, Sandretto, & Hallahan, 2009). In the case of agro-foods, the main components of competitiveness, apart from historical factors, lie in economies of scale and differing degrees and capacities of adopting production and product innovation.…”
Section: Introductionmentioning
confidence: 97%
“…Demand for milk has not risen as rapidly as productivity, leading to downward pressure on prices. As a result, smaller dairies that have been a mainstay of traditional rural landscapes in many parts of the United States have found it difficult to compete (Mosheim and Lovell, 2009;Nehring et al, 2009;Winsten et al, 2010).…”
Section: Introductionmentioning
confidence: 99%