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Diversification, Vertical Integration, and the Regional Pattern of Dairy Farm Size

Posted: 23 Feb 2003  

Daniel A. Sumner

University of California, Davis - Department of Agricultural and Resource Economics

Christopher A. Wolf

Michigan State University - Department of Agricultural Economics

Abstract

Dairy farm size differs considerably across the United States. We analyze patterns of dairy farm size to determine how differences in vertical integration and diversification relate to farm size. We find that diversification accounts for little size variation. For vertical integration, the partial correlation with dairy herd size is strongly negative. Dairy value-added size measures vary less across regions than herd size, indicating that an important part of herd size variation relates to vertical integration. Nonetheless, dairy farms in the Pacific and South regions remain much larger than farms in the traditional dairy regions, even when accounting for vertical integration.

Suggested Citation

Sumner, Daniel A. and Wolf, Christopher A., Diversification, Vertical Integration, and the Regional Pattern of Dairy Farm Size. Review of Agricultural Economics, Vol. 24, pp. 442-457, 2002. Available at SSRN: https://ssrn.com/abstract=371458

Daniel A. Sumner (Contact Author)

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
530-752-5002 (Phone)
530-752-5614 (Fax)

Christopher A. Wolf

Michigan State University - Department of Agricultural Economics ( email )

East Lansing, MI 48824
United States

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