EVALUATION OF THE BASE-EXCESS PLAN FOR LEVELING SEASONAL MILK PRODUCTION: CASE EXAMPLE OF MARYLAND
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Seasonal incentive plans, such as the base-excess plan, have been
initiated to encourage producers to shift their production to be more similar
to seasonal consumption patterns. The effectiveness of the seasonal
incentive plan was evaluated by examining Maryland milk production data
for the period 1966-78. The analysis indicated that month-to-month
variation in milk production has increased in recent years, and suggests that
current seasonal incentive plans be evaluated to encourage dairy producers
to shift their production schedules.