Social and Behavioral Sciences Commons^™

Regional Adjustment Response In The U.S. Dairy Sector To Changes In Milk Support Price, Alfons Weersink, Wayne H. Howard

Agribusiness

Milk production supply response at the regional level for the U.S. dairy sector is estimated through the use of dynamic dual models. Adjustment rates and elasticity measures are presented, and then the estimated parameter coefficients are used to stimulate shifts in production resulting from price changes. A drop in milk price designed to realign market conditions is projected to be borne largely by the Corn Belt and, to a lesser extent, the western states.