Adoption and productivity of breeding technologies: evidence from US dairy farms

Abstract

Adoption and associated profitability of advanced breeding technologies are analyzed for US dairy farms. We account for correlation and selection associated with breeding technology adoption decisions. The bivariate probit model with selection is used to model adoption decisions and least squares with extended correction terms is used for profit, productivity, and cost equations. Results show that more specialized farms with younger, more educated operators having longer planning horizons are more likely to adopt advanced breeding technologies. Artificial insemination positively impacted farm profit and negatively impacted cost of milk production, while advanced breeding technologies positively impacted milk produced per cow.