Market functions and the plight of the Northeast livestock auction industry [North Eastern States (USA)]

Extract: The purpose of this paper is to test the hypothesis that auction market costs exceed allowable fees for markets in dairy states. Permissible fees are regulated by the Packers and Stockyards Administration (PandSA) of the U.S. Department of Agriculture in much the same fashion as are public...

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Bibliographic Details
Published inJournal of the Northeastern Agricultural Economics Council Vol. 8; no. 2; pp. 221 - 229
Main Author Lesser, W.H
Format Journal Article
LanguageEnglish
Published 01.10.1979
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Summary:Extract: The purpose of this paper is to test the hypothesis that auction market costs exceed allowable fees for markets in dairy states. Permissible fees are regulated by the Packers and Stockyards Administration (PandSA) of the U.S. Department of Agriculture in much the same fashion as are public utility fees. The results of this study support the hypothesis that the costs of operating auctions in dairy states exceeds permissible service derived revenue for several size categories of markets. The inequality of costs and permissible revenue, known as revenue requirements, is due to the relative costliness of dairy auctions compared to the national average. Thus the future of some of the markets in the principal dairy states in the Northeast and elsewhere is in doubt
Bibliography:8129965
E70
ISSN:0163-5484
2398-4635
DOI:10.1017/S0163548400004878