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Before- and After-Tax Size Economies: An Example for Cash Grain Production in Illinois

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  • Marvin T. Batte
  • Steven T. Sonka

Abstract

This article reports the degree to which economies of farm size exist for commercial Illinois cash grain agriculture, both on a before- and after-tax basis. Receipt, expense, and investment data are from the Illinois Farm Business Farm Management Association records, 1975–79. Analysis of covariance techniques were used in the examination of the five-year time series of cross-sectional data. Results indicate statistically significant evidence of economies of size, both on a before- and after-tax basis. There was no significant evidence of diseconomies of size for this sample.

Suggested Citation

  • Marvin T. Batte & Steven T. Sonka, 1985. "Before- and After-Tax Size Economies: An Example for Cash Grain Production in Illinois," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 600-608.
    • Handle: RePEc:oup:ajagec:v:67:y:1985:i:3:p:600-608.
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    File URL: http://hdl.handle.net/10.2307/1241081
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    Cited by:

    1. Huffman, Wallace E. & Evenson, Robert E., 2000. "Structural and productivity change in US agriculture, 1950-1982," Agricultural Economics, Blackwell, vol. 24(2), pages 127-147, January.
    2. Forster, D. Lynn & Stout, Thomas T., 1988. "Commercial Agriculture Versus The Farm Home," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270157, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Miller, James C. & Coble, Keith H. & Vergara, Oscar, 2003. "Farm Program Payments And Economies Of Scale," 2003 Annual meeting, July 27-30, Montreal, Canada 22231, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Evenson, Robert E. & Huffman, Wallace E., 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Center Discussion Papers 28518, Yale University, Economic Growth Center.
    5. Kislev, Yoav & Peterson, Willis L., 1991. "Economies Of Scale In Agriculture: A Reexamination Of The Evidence," Staff Papers 13652, University of Minnesota, Department of Applied Economics.
    6. Peterson, Willis L., 1997. "Are Large Farms More Efficient?," Staff Papers 13411, University of Minnesota, Department of Applied Economics.
    7. Unknown, 1998. "Commodity Costs and Returns Estimation Handbook (entire book-condensed file)," Commodity Costs and Returns Estimation Handbook,, Iowa State University.
    8. Unknown, 1998. "References/Literature Cited," Commodity Costs and Returns Estimation Handbook,, Iowa State University.
    9. Robert E. Evenson & Wallace B. Huffman, 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Working Papers 773, Economic Growth Center, Yale University.
    10. Gustafson, Cole R. & Barry, Peter J. & Sonka, Steven T., 1988. "Machinery Investment Decisions: A Simulated Analysis For Cash Grain Farms," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-10, December.
    11. Knutson, Ronald D. & Richardson, James W. & Smith, Edward G. & Rister, M. Edward & Grant, Warren R. & Lippke, Lawrence A. & Israelsen, Craig L., 2002. "Economic Impacts of Farm Program Payment Limits," Working Papers 42717, Texas A&M University, Agricultural and Food Policy Center.
    12. Fertő, Imre, 2002. "A mezőgazdasági termelés szerkezetének változásai a fejlett országokban, II. Az üzemnagyság és a mérethozadék problémája a mezőgazdaságban [Changes in the structure of agricultural production in th," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 760-773.

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