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Preliminary Estimates Of Economies Of Size In Vegetable Production

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  • Fueglein, Hugo V.
  • Bravo-Ureta, Boris E.

Abstract

The purpose of this paper is to present preliminary estimates of economies of size and optimal cropping patterns for vegetable production in the Connecticut River Valley. Linear programming results indicate substantial economies of size from farms up to $100,000 of gross returns and only marginal average cost savings thereafter. For the five farms analyzed, crop diversification is observed at optimal levels of output. With the exception of the two smallest farms, once output dropped to 90 percent of the optimal levels, farms specialized in one vegetable crop.

Suggested Citation

  • Fueglein, Hugo V. & Bravo-Ureta, Boris E., 1984. "Preliminary Estimates Of Economies Of Size In Vegetable Production," 1984 Annual Meeting, August 5-8, Ithaca, New York 279011, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea84:279011
    DOI: 10.22004/ag.econ.279011
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    References listed on IDEAS

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    3. Tyrrell, Timothy J. & Anderson, Glen D. & Weaver, Thomas F., 1982. "Is Self-Sufficiency A Legitimate Goal for Northeast Agriculture?," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-5.
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