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Is Farming a Constant Cost Industry?

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  • Emery N. Castle

Abstract

Measurement of cost-size relationships for farming has long been an important area of research in agricultural economics. Much of this research has had a farm management and production economics orientation, and firm-industry interdependencies have often been ignored. Research results stemming from such an orientation should be interpreted with care when used for policy purposes. Pecuniary externalities may be of greater importance than indicated by research to this time. A suggestion is made for treating induced technical change as comparable to a pecuniary externality. Questions are raised on both theoretical and empirical grounds whether farming in the United States should be considered a constant cost industry for policy purposes.

Suggested Citation

  • Emery N. Castle, 1989. "Is Farming a Constant Cost Industry?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 574-582.
  • Handle: RePEc:oup:ajagec:v:71:y:1989:i:3:p:574-582.
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    File URL: http://hdl.handle.net/10.2307/1242013
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    Cited by:

    1. Kawasaki, Kentaro, 2010. "The costs and benefits of land fragmentation of rice farms in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-18.
    2. Kawasaki, Kentaro, 2011. "The Impact of Land Fragmentation on Rice Production Cost and Input Use," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 13, pages 1-14.
    3. McDowell, George R., 1993. "Structural Change In Higher Education: Implications For Agricultural Economics Extension; Or Does Diffedence, Decadence And Dissonance Make A Difference?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(1), pages 1-7, July.
    4. Abdullahi Abdulkadri & Michael Langemeier & Allen Featherstone, 2006. "Estimating economies of scope and scale under price risk and risk aversion," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 191-201.
    5. Weber, Bruce A., 1997. "Crossing The Next Meridian: The Economics Of Rural-Urban Interdependence, Institutions And Income Distribution In The American West," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35785, Western Agricultural Economics Association.

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