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This book focuses on the use of farm level, micro- and macro-data of cooperative systems and networks in developing new robust, reliable and coherent modeling tools for agricultural and environmental policy analysis. The efficacy of public intervention on agriculture is largely determined by the existence of reliable information on the effects of policy options and market developments on farmers' production decisions and in particular, on key issues such as levels of agricultural and non-agricultural output, land use and incomes, use of natural resources, sustainable-centric management, structural change and the viability of family farms. Over the last years, several methods and analytical tools have been developed for policy analysis using various sets of data. Such methods have been based on integrated approaches in an effort to investigate the above key issues and have thus attempted to offer a powerful environment for decision making, particularly in an era of radical change for both agriculture and the wider economy.
ABSTRACT: The Florida dairy market has a few fluid milk processors and many dairy farmers. The dairy farmers are represented in negotiation with the processors by a cooperative. This dissertation builds a theoretical model for bargaining between the processors and a cooperative with outside options and risk of breakdown. The model is applied to the Florida dairy market to examine price negotiations between Florida milk processors and a dairy cooperative. Time series data was collected for the period of October 1998 to May 2009. An expectation maximization (EM) algorithm along with Maximum Likelihood Estimation was used to analyze the econometric disequilibrium model empirically in Gauss statistical software. The results show that the class I price set by the Federal Milk Marketing Order is the major factor influencing the processors' demand reservation price. Negotiated quantity and production seasonality affect the cooperative's supply reservation price. The cooperative appears to be more patient and has higher average bargaining power (0.7055) than the bargaining power for processors (0.2945). The highest (lowest) bargaining power for the cooperative (processors) occured in 2008 and the lowest (highest) bargaining power for the cooperative (processors) occurred in both 2001 and 2004.