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Machinery-Sharing Contractual Issues and Impacts on Cash Flows of Agribusinesses


  • Wolfley, Jared L.
  • Mjelde, James W.
  • Klinefelter, Danny A.
  • Salin, Victoria


Contractual arrangements for joint machinery ownership between independent agribusinesses are explored. A two-farm economic simulation model of locations in Texas, Colorado, and Montana is developed to provide insight associated with sharing combines. Important variables include combine size (efficiency), yield losses resulting from untimely access to equipment, the penalty structure for untimely delivery, and cost-sharing and depreciation deductions claimed between producers. Combine sharing is risk-reducing in most cases. The gains to both parties are lowest when harvesting periods overlap. While the value of sharing is positive under many scenarios, benefits from sharing are small relative to total farm revenue.

Suggested Citation

  • Wolfley, Jared L. & Mjelde, James W. & Klinefelter, Danny A. & Salin, Victoria, 2011. "Machinery-Sharing Contractual Issues and Impacts on Cash Flows of Agribusinesses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(1), April.
  • Handle: RePEc:ags:jlaare:105536

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    References listed on IDEAS

    1. Foreman, Linda F., 2006. "Characteristics and Production Costs of U.S. Corn Farms, 2001," Economic Information Bulletin 7205, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Feil, Jan-Henning & Anastassiadis, Friederike & Mußhoff, Oliver & Kasten, Philipp, 2015. "Analysing farmers' preferences for collaborative arrangements: an experimental approach," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209195, German Association of Agricultural Economists (GEWISOLA).


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