Milk quota leasing prices and the 'end of season effect'. Will it continue?
Series: Farm Management ; 10(11) October 2000, 643-653(6)Publication details: 2000Subject(s): Summary: The milk quota lease price often increases towards the end of the quota trading year. The 'end of season effect' occurs because some farmers are unable to reduce production to their effective quota - even though there are clear indications that superlevy will be incurred. In these circumstances, farmers adopt a second best strategy of increasing the price they bid to lease quota because this can reduce the financial loss associated with the production and disposal of over-quota milk. But in the Agenda 2000 agreement, the deadline for leasing quota was extended to the end of the milk quota year and may change trading patterns and consequently reduce the end of season effect on prices. References.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS63360 (Browse shelf(Opens below)) | 1 | Available | 110167-1001 |
The milk quota lease price often increases towards the end of the quota trading year. The 'end of season effect' occurs because some farmers are unable to reduce production to their effective quota - even though there are clear indications that superlevy will be incurred. In these circumstances, farmers adopt a second best strategy of increasing the price they bid to lease quota because this can reduce the financial loss associated with the production and disposal of over-quota milk. But in the Agenda 2000 agreement, the deadline for leasing quota was extended to the end of the milk quota year and may change trading patterns and consequently reduce the end of season effect on prices. References.