siderations: (1) the comparability of models for the various areas, (2) 

 the choice of production activities, (3) the extent of resource con- 

 straints, and (4) the price variability among areas. 



Comparability of Models for the Various Areas 



The general structure of dairy farms throughout the Northeast 

 region appeared to be sufficiently alike to warrant basically similar 

 linear programming models for all areas. However, each participating 

 state developed its own model so that unique characteristics of each 

 area could be reflected. As a consequence, the various models have some 

 identical equations and some modifications to fit particular area situa- 

 tions. Special care was taken to insure that intraregional productivity 

 differences, if any, would be manifested in the results. All input-output 

 data were carefully scrutinized for intraregional consistency and com- 

 parability. Differences in results among areas, therefore, represent the 

 prevailing conditions of each area rather than differences in procedures 

 and assumptions. 



Choice of Production Activities 



Conditions that usually guide the selection of activities for linear 

 programming models are: (1) the relevant time period, (2) the state 

 of technology, and (3) the degree of specialization. 



In this study the problem was to develop a model which was to 

 maximize profits allowing resource use changes and additions that could 

 occur within intermediate run conditions. This temporal condition dic- 

 tated models designed to depict the production choices available to 

 farmers if they had sufficient time to adjust feeding rates and milk yields, 

 fertilizer rates and crop yields, crop selection and hay procurement 

 methods, dairy cow replacement methods, seasonal labor employment, 

 and barn capacity and silo capacity. Certain areas, in addition, permitted 

 choices between dairy and other livestock enterprises, principally beef 

 and hogs. In calendar time, the study specified 1960 as the base year and 

 initially set 1965 as the target date.^'* 



The input-output coefficients used in the model reflect the temporal 

 nature of the problem. Coefficients were used representing management 

 and yields associated with the top 25 percent of the farmers in 1960-61. 

 These relationships were considered to be representative of aggregate 

 farmer response within the time span of the model. 



Since most of the New England dairy farmers have few farm enter- 

 prise alternatives, the activities for New England models represented 

 specialization in the dairy enterprise. Some diversification is represented 

 by activities included in the models for the other areas of the North- 

 east. For example, the New York and Pennsylvania models included 



'^The income results of the models are for a single year's operation. Each ad- 

 justment and its corresponding income is considered as a single adjustment to reach 

 static equilihrinm, while some activities would likely require several years to reach 

 this equilibrium. 



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