Dissertation
Cause and Effect of Marketing Order Terminations
Washington State University
Doctor of Philosophy (PhD), Washington State University
01/2021
DOI:
https://doi.org/10.7273/000002408
Handle:
https://hdl.handle.net/2376/122197
Abstract
Marketing orders were originally developed during the Great Depression to help small farmers by giving them better control of the market. As the only government approved cartels in the US, we would expect to see more of them; however, we see less. Considering the potential benefits, we set out to determine why these orders might be terminating and what happens when they do. In the first paper, we created a novel dataset on marketing order characteristics to determine what could be impacting individual terminations between 1974 – 2019. Using survival models, we find that having a corresponding marketing agreement and more profitable production led to a lower probability of termination while age led to a higher probability. If a marketing order wants to ensure its survival, it needs to have full community involvement and remain profitable.
In the second paper, we considered the total prevalence of marketing orders instead of individual survivability. Since agricultural has changed dramatically since the origination of marketing orders, we wanted to consider some of the market and cultural changes that have happened over the last few decades. We found higher family labor levels led to more active marketing orders while farm growth and productivity led to fewer active marketing orders. While we were able to verify small family farms benefited, marketing orders will need to adapt, or their usefulness will continue to decline.
In the third paper, we considered the general equilibrium effects if a marketing order were to terminate or lose their supply control. Using data from California in 2013, we estimated a 13-sector computable general equilibrium model when the raisin marketing order lost their supply control. As expected, raisin output increased which was followed by a reduction in price. While the output value was increased for raisins, fruit, forestry, and mining, the remaining sectors lost. At the same time, households benefited with small changes, but the benefit was declining for those in higher income brackets. While terminating supply controls benefited some, it hurt all.
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Details
- Title
- Cause and Effect of Marketing Order Terminations
- Creators
- Samantha Rose Johnson
- Contributors
- Jill J. McCluskey (Advisor)Michael P. Brady (Advisor)Ron C. Mittelhammer (Committee Member)Philip S. Watson (Committee Member)
- Awarding Institution
- Washington State University
- Academic Unit
- Economic Sciences, School of
- Theses and Dissertations
- Doctor of Philosophy (PhD), Washington State University
- Publisher
- Washington State University
- Number of pages
- 118
- Identifiers
- 99900606752901842
- Language
- English
- Resource Type
- Dissertation