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Evidence of Scope Economies in Australian Agriculture

Author

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  • Villano, Renato A.
  • Fleming, Pauline
  • Fleming, Euan M.

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.

Suggested Citation

  • Villano, Renato A. & Fleming, Pauline & Fleming, Euan M., 2008. "Evidence of Scope Economies in Australian Agriculture," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 5996, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare08:5996
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    File URL: http://purl.umn.edu/5996
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    References listed on IDEAS

    as
    1. 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.
    2. 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 459-465, August.
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    Keywords

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

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