Optimal Production Schedules for a Representative Farm Under Alternative Seasonal Milk Pricing Patterns of the Base-Excess Plan
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Production of milk under various pricing
policies were examined for a representative dairy
farm operating under the base- excess plan. Three
pricing scenarios ~re examined to determine calving
schedule, milk production, and shadow
prices . The period May- July was most profitable,
and December- January the least profitable months
for calving , under the base-excess program in the
Mid- Atlantic Order. The representative producer
responded to the pricing policies by shifting
production in response to changes in the seasonal
patterns of the base and excess prices.