An analysis of the derived demand for pastureland and the dairy farming productivity in Hokkadio
2001
Fujii, Y. (Hokkaido Univ., Sapporo (Japan)) | Kondo, T.
This study analyzes the effect of increases in Hokkaido pastureland on dairy farming. In order to represent the feed producing process explicitly and to analyze the derived demand for input factors, subsystem equations as well as a master system equation were employed. The results implied that farmers react to changes in the input price ratio of feed and land. A continuous decrease in the price ratio, which is caused by the increasing land rent in the 1970's and the rapidly decreasing feed price in the 1980's, has induced the feed-using and land-saving technologies. However, in recent years, the previously increasing land rent has been decreasing, and this should induce more efficient land-using technologies.
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