The role of extension in dynamic economic adjustments: the case of Irish dairy farms

Abstract

European Union dairy policy eliminated milk production quotas in 2015, inducing major adjustments in the European dairy industry. This article explores the role of farm extension services in dynamic adjustments on Irish dairy farms. An Arellano–Bond estimation strategy is applied to panel data from a representative sample of Irish dairy farms spanning 2008–2014. We find a positive, yet declining, impact of extension services on the dynamics of dairy herd size, specialisation and intensification. Farm-level response changes in relation to length of extension membership and policy implications to re-structure extension services are discussed.