Adoption of Milk and Feed Forward Pricing Methods by Dairy Farmers

Increasing volatility in milk and feed prices has led to higher levels of market and financial risk for dairy farmers. We examine dairy farmer use of forward pricing methods for milk sales and feed purchases. Operators with larger herds, higher levels of education, and those farm businesses that were not organized as sole proprietorships were more likely to have used forward pricing. We also examine reasons dairy farm operators had not used these tools to date and find that the most common reason was lack of knowledge. These findings may be used to target educational seminars and outreach to dairy farm managers.


Issue Date:
2014-11
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/189100
Published in:
Journal of Agricultural and Applied Economics, Volume 46, Number 4
Page range:
527-541
Total Pages:
14
JEL Codes:
G13; Q12; Q13
Series Statement:
46
4




 Record created 2017-04-01, last modified 2017-04-28

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