Optimal Production Schedules for a Representative Farm Under Alternative Seasonal Milk Pricing Patterns of the Base-Excess Plan

Abstract

Production of milk under various pricing policies were examined for a representative dairy farm operating under the base- excess plan. Three pricing scenarios ~re examined to determine calving schedule, milk production, and shadow prices . The period May- July was most profitable, and December- January the least profitable months for calving , under the base-excess program in the Mid- Atlantic Order. The representative producer responded to the pricing policies by shifting production in response to changes in the seasonal patterns of the base and excess prices.