The stall spaces, cows on hand, and replacements were varied 

 within each milk response and milk price combination to allow vary- 

 ing intensity of operation. These restrictions were kept in nearly 

 constant ratio to each other while solving with varying ratios of cows 

 per crop acre. Table 2 shows the values of restrictions for different 

 cow cropland ratios. 



Production and Price Data 



Most of the production and price data for this study was de- 

 veloped by the Northeast Dairy Adjustment Research Committee.* 

 The rates of performance and costs of operating machines were 

 developed from engineering data by this committee. Yields and 

 responses to fertilizer were developed in cooperation with agrono- 

 mists. The level of crop response is intended to reflect the yields and 

 costs associated with the top 25 percent of farmers in 1961.** This 

 level of crop response is also intended to be a projection of the yield 

 and variable cost structure which will be typical of the study area in 

 1970. 



Milk response functions were developed from the milk produc- 

 tion and feeding data of the Lake States Dairy Adjustment Study, 

 the Northeast Adjustment Study, and an unpublished master's thesis 

 from the University of New Hampshire (Table 3). 



The low milk response function developed for the Northeast 

 Dairy Adjustment Study reflects the milk response of cows of the 

 average ability of 1961. It starts at a milk production of 7,230 pounds 

 at the lowest level of grain feeding and rises quite sharply to 8,550 

 pounds of milk at the 2,500 pound grain feeding level. Below 2,500 

 pounds of grain, the response to grain feeding is higher because the 

 animal is not fed to her stomach capacity. From 8,550 pounds of milk 

 to the maximum milk production of 9,440 pounds, this response has 

 the same slope as the medium milk response function. This lesser 

 slope indicates cows are fed to their stomach capacity. 



* Dailey, R. T., Frick, G. E., and McAlexander, R. H., editors, "Agricultural 

 Economic Planning Data for the Northeastern United States," A.E. & R.S. 

 51, Pennsylvania State Univ., Univ. Park, Pa., July 1965. 



** See appendix II for yield and price data used in this study. 



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