Economics of Size in Dairy Farm Adjustment to Water Quality Constraints

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Abstract

Adjustment of small, medium, and large Vermont dairy farms to successively tighter constraints on phosphorus loss was modeled using linear programming. Aggregate response to phosphorus control was estimated for an area from farm marginal costs. Medium and large farms have lower costs than small farms and could achieve higher levels of phosphorus reduction at the same proportional loss of income.

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1982-07
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Charles H. Dyson School of Applied Economics and Management, Cornell University
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