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Evidence of Scope Economies in Australian Agriculture

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Author Info
Villano, Renato
Fleming, Pauline
Fleming, Euan
Abstract

Scope economies can be used in studies of farming systems to provide a measure of synergies between different farm enterprises and between activities within farm enterprises. In this paper, they are reported for farms in three benchmarking groups in Australia by estimating stochastic input distance functions and calculating an 'economies of scope parameter'. Evidence of significant scope economies between sheep and crop enterprises, and between beef and crop enterprises, is presented and discussed. Similar evidence is reported between wool and lamb activities and wool and mature sheep trading activities within the sheep enterprise.

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Publisher Info
Paper provided by Australian Agricultural and Resource Economics Society in its series 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia with number 5996.

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Date of creation: 2008
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Handle: RePEc:ags:aare08:5996

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Related research
Keywords: Australia; Crops; Livestock; Sheep; Scope Economics; Crop Production/Industries; Livestock Production/Industries; Research Methods/ Statistical Methods; Industrial Organization;

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  1. Deller, Steven C & Chicoine, David L & Walzer, Norman, 1988. "Economies of Size and Scope in Rural Low-Volume Roads," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 459-65, August. [Downloadable!] (restricted)
  2. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December. [Downloadable!] (restricted)
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This page was last updated on 2009-12-26.

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