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The state of Maine has a unique tier-pricing program for dairy farms, established in 2004, which has been funded by milk-handling fees paid by processors. Given the nature of volatile production costs in dairy farming, it is important to update the baseline cost estimates for each tier every three years. This study aims to provide a precise baseline estimate of cost of production for each tier so that state legislators can better manage the tier-pricing program. The authors provide a historic overview of past Maine dairy cost-of-production studies. They analyze the trend of the cost of producing milk in Maine since 2010 using historic data of Maine dairy cost-of-production studies and evaluate their results by comparing them with other dairy cost studies. In general, this empirical study provides a comprehensive assessment of the cost of producing milk in Maine.
Maine Agricultural and Forest Experiment Station
Maine, dairy, cost of production, milk prices
Chen, X. G. Anderson, D. Bouchard, J. McGuire, G. Criner, and D. Marcinkowski. 2016. Cost of producing milk in Maine: Results form the 2013 cost-of-production survey. Maine Agricultural and Forest Experiment Station Bulletin 854.