EVALUATION OF THE BASE-EXCESS PLAN FOR LEVELING SEASONAL MILK PRODUCTION: CASE EXAMPLE OF MARYLAND

Seasonal incentive plans, such as the base-excess plan, have been initiated to encourage producers to shift their production to be more similar to seasonal consumption patterns. The effectiveness of the seasonal incentive plan was evaluated by examining Maryland milk production data for the period 1966-78. The analysis indicated that month-to-month variation in milk production has increased in recent years, and suggests that current seasonal incentive plans be evaluated to encourage dairy producers to shift their production schedules.