Retail milk price responses to farm price changes were analyzed for Boston, Massachusetts, and Hartford, Connecticut. Prior research concluded asymmetries did not exist in the response of retail fluid milk prices to changes in farm prices. This study finds transmission rates were greater for the Compact period (100 – 120 percent) than the PreCompact period (66 – 88 percent). Short-run asymmetri...

rice production in most of asian countries has been increased more rapidly than population and this has been led to increase in supply and proportionately decrease in the real price of rice in world and domestic markets. furthermore, together with growth in production and national gross income of the country per-capita income has been increased and also demand for rice at national and internati...

Farm milk prices tend to be volatile. Dairy farmers, industry pundits, and policymakers further tend to react to price volatility with alarm. One point of concern is the response of retail prices. This study investigates farm-to-retail price transmission in the 2000s for whole milk and cheddar cheese. Results show that price shocks at the farm gate are transmitted with delay and asymmetry to re...

In 1981, the US dairy industry experienced a major change in federal policy. From 1950 until 1981 farm level milk prices were supported at a minimum of 75 to 90 percent of parity. Under parity the support price and farm level milk prices trended upward most years. But in 1981, support prices were de-coupled from the parity index. Instead, the support price would be based on the level of milk su...

This study evaluates the impacts of the trade liberalization under Doha Round on basmati rice in Pakistan using a partial equilibrium model. Price integration analysis shows that there is a stable long-run relationship between farm gate price and wholesale price and between wholesale price and world price of basmati and non-basmati rice. Direction of influence is from world price to wholesale p...

This article briefly explores the nature of price risk faced by Australian broad acre farmers and outlines some farm management ramifications of price risk. The article describes the variation in price risk across time and across commodities. The underlying distributional form of prices faced by farmers is shown to have important ramifications for farm management. The likelihood of increases in...

INCE 1974, FOLLOWING PUBLICATION of Schuh’s “The Macroeconomics of Agriculture,” much research effort has been devoted to determining whether and how monetary policy affects the farm sector. One of the more active areas of interest has been the question of whether changes in the money stock affect the farm! nonfarm product relative price ratio. The reason for this particular interest, as descri...

Over the past three decades vertical price transmission analysis has been the subject of considerable attention in applied agricultural conomics. It has been argued that the existence of asymmetric price transmission generates rents for marketing and processing agents. Retail prices allegedly move faster upwards than downwards in response to farm level pricemovements. This is an important issue...

The Dixit entry/exit real option model was applied to the entry/exit decisions of New York dairy farmers. For the cost structure of a 500-cow farm the entry milk price is $17.52 per hundredweight (cwt.) and the exit milk price is $10.84. For the 50-cow farm cost structure the entry price is higher at $23.71 per cwt., and the exit price is also higher at $13.48. If infinite numbers of representa...

over the past three decades vertical price transmission analysis has been the subject of considerable attention in applied agricultural conomics. it has been argued that the existence of asymmetric price transmission generates rents for marketing and processing agents. retail prices allegedly move faster upwards than downwards in response to farm level pricemovements. this is an important issue...