Assessing the response of farm households to dairy policy reform in Israel

dc.contributor.author Kimhi, Ayal
dc.contributor.author Rubin, Ofir
dc.contributor.department Economics
dc.date 2018-02-17T18:17:21.000
dc.date.accessioned 2020-06-30T02:12:21Z
dc.date.available 2020-06-30T02:12:21Z
dc.date.issued 2007-06-13
dc.description.abstract <p>After nearly fifty years of stability and stagnation of dairy market regulations in Israel, a dramatic policy reform has been enacted in 1999. The reform enabled farm households, for the first time, to trade production quotas. In addition, the reform signaled to farmers that milk prices will gradually go down in real terms, and therefore only producers who expand and become more efficient will prevail. The reform allowed for generous financial support for investment in expansion, but also required the adoption of environmental regulations which could be costly to many farm families. This paper uses data from a census of small family-operated dairy enterprises that was conducted in 2001, in order to analyze the response of farm households to the reform. The results imply that the reform was particularly attractive for already strong producers. Weaker producers are less attracted by the reform and will likely fade away by default in the long run. Another finding is that intergenerational succession is an important element of decision making of milk producers. Hence, the response of farm households to changes in the economic environment cannot be disentangled from the occupational decisions of their offspring. These findings imply that the desired structural change in the family-farm milk production sector will take much longer than expected, essentially as long as the current generation of producers is around. This requires, perhaps, an extension of the reform period or a change in incentives in favor of the smaller and older producers.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/182/
dc.identifier.articleid 1181
dc.identifier.contextkey 8797565
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/182
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22403
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/182/p3870_2007_06_13.pdf|||Fri Jan 14 21:38:22 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords milk policy reform
dc.subject.keywords technology adoption
dc.subject.keywords intergenerational succession
dc.title Assessing the response of farm households to dairy policy reform in Israel
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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