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Journal of Dairy Science Vol. 71 No. 3 863-869
© 1988 by American Dairy Science Association ®
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Government Policies and Revenue of Dairy Farmers1

Richard L. Kilmer and Xiling Wu

Food and Resource Economics Department, University of Florida, Gainesville 32611

ABSTRACT

The impact of obtaining a balance between production and consumption through a production quota, a price support reduction, and an assessment is analyzed. Production quota would have reduced farmers total revenue by 3.51%, price support reduction would have reduced farmers total revenue by 11.44%, and assessment would have reduced farmers' total revenue by 32.39% if excess production (USDA net removals) had been reduced from 1648 to 480 million pounds during the fourth quarter of 1981. Thus, government expenditures would have been reduced 70.87% by quota and assessment and 74.23% by a price support reduction.

FOOTNOTES

1 Florida Agricultural Experiment Stations Journal Series Number 8483.






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Copyright © 1988 by the American Dairy Science Association ®.