Supply Response in Dairy Farming: Evidence from Monthly, Animal-Level Data

Jared Hutchins, Brent Hueth

Research output: Contribution to journalArticlepeer-review


We estimate short-run price response in dairy farming using nearly 10 million monthly animallevel observations across 2,311Wisconsin farms in the years 2011-2014.We control for herd size and account for the age distribution of dairy cattle to identify changes in variable inputs in response to price movements.We find heterogeneous supply response across the animal life cycle to lagged movements in monthly milk and beef prices. Specifically, we find the greatest supply response in age cohorts with relatively high marginal returns from feeding, with supply elasticities as high as 0.286 for milk price and 0.713 for beef price. The results are primarily driven by significant producer response to prices in 2014, a period of volatile milk and beef prices.

Original languageEnglish (US)
Pages (from-to)38-56
Number of pages19
JournalJournal of Agricultural and Resource Economics
Issue number1
StatePublished - Jan 2022


  • biological production function
  • cattle cycle
  • dynamic panel
  • livestock
  • volatility

ASJC Scopus subject areas

  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics


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