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Economies of Size in U.S. Field Crop Farming

Author

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  • Miller, Thomas A.
  • Rodewald, Gordon E.
  • McElroy, Robert G.

Abstract

Economies of size refers to the relative cost efficiency associated with different firm sizes. As farm size increases in most field crop regions, per-unit costs decline at first and then are relatively constant. Medium-size commercial farms ($41,000 to $76,000 gross income) achieve most available technical cost efficiencies. Society would likely benefit little in terms of lower real food costs from further increase in the size of these farms. Apparently economies of size are not a major factor in farm enlargement; farmers expand their farms to increase income rather than to reduce per-unit costs.

Suggested Citation

  • Miller, Thomas A. & Rodewald, Gordon E. & McElroy, Robert G., 1981. "Economies of Size in U.S. Field Crop Farming," Agricultural Economic Reports 307907, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:307907
    DOI: 10.22004/ag.econ.307907
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    References listed on IDEAS

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    1. Philip M. Raup, 1978. "Some Questions of Value and Scale in American Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 303-308.
    2. Seckler, David, 1970. "Reflections on management, scale, and mechanization in agriculture," WAEA/ WFEA Conference Archive (1929-1995) 291592, Western Agricultural Economics Association.
    3. David Seckler & Robert A. Young, 1978. "Economic and Policy Implications of the 160-Acre Limitation in Federal Reclamation Law," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(4), pages 575-588.
    4. Reimund, Donn A. & Martin, J. Rod & Moore, Charles V., 1981. "Structural Change in Agriculture: The Experience for Broilers, Fed Cattle, and Processing Vegetables," Technical Bulletins 157701, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Al-Amin, A.K.M. Abdullah & Lowenberg-DeBoer, James & Franklin, Kit & Behrendt, Karl, 2021. "Economic Implications of Field Size for Autonomous Arable Crop Equipment," Agri-Tech Economics Papers 316595, Harper Adams University, Land, Farm & Agribusiness Management Department.
    2. Baum, Kenneth H. & Harrington, David H., 1983. "Effects of Alternative Economic Scenarios and Commodity Policies on Regional Representative Farms," Staff Reports 337010, United States Department of Agriculture, Economic Research Service.
    3. Al-Amin, A.K.M. Abdullah & Lowenberg-DeBoer, James & Franklin, Kit & Behrendt, Karl, 2021. "Economic Implications of Field Size for Autonomous Arable Crop Equipment," Land, Farm & Agribusiness Management Department 316595, Harper Adams University, Land, Farm & Agribusiness Management Department.
    4. Abdullah Al-Amin, A.K.M & Lowenberg‑DeBoer, James & Franklin, K. & Behrendt, K., 2022. "Economics of Field Size for Autonomous Crop Machines," Agri-Tech Economics Papers 322755, Harper Adams University, Land, Farm & Agribusiness Management Department.

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