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A return of the threshing ring? Motivations, benefits and challenges of machinery and labor sharing arrangements

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  • Artz, Georgeanne M.
  • Colson, Gregory J.
  • Ginder, Roger

Abstract

Cooperative approaches provide an alternative for small- and medium-sized producers to obtain the efficiencies of large farming operations and remain competitive in an increasingly concentrated agricultural industry. This article examines the motivation and effectiveness of equipment and labor sharing arrangements in the Midwestern US. Case study evidence shows that in addition to cost savings, access to skilled, seasonal labor is an important motivation for farm-level cooperation. Key factors identified for successful cooperative agreements include compatibility of operations and members' willingness to communicate and adapt. Sharing resources is found to improve farm profitability, efficiency and farmers' quality of life.

Suggested Citation

  • Artz, Georgeanne M. & Colson, Gregory J. & Ginder, Roger, 2009. "A return of the threshing ring? Motivations, benefits and challenges of machinery and labor sharing arrangements," ISU General Staff Papers 200905050700001136, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200905050700001136
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    References listed on IDEAS

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    1. Fulton, Murray E. & Harris, Andrea, 2000. "The Cuma Farm Machinery Co-Operatives," Miscellaneous Publications 31774, University of Saskatchewan, Centre for the Study of Co-operatives.
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    6. Hall, Bronwyn H. & Khan, Beethika, 2003. "Adoption of New Technology," Department of Economics, Working Paper Series qt3wg4p528, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    7. Harris, Andrea & Fulton, Murray E., 2000. "Farm Machinery Co-Operatives: An Idea Worth Sharing," Miscellaneous Publications 31762, University of Saskatchewan, Centre for the Study of Co-operatives.
    8. Sexton, Richard J. & Iskow, Julie, 1988. "Factors Critical to the Success or Failure of Emerging Agricultural Cooperatives," Information Series 11921, University of California, Davis, Giannini Foundation.
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    11. Edwards, William M., 2001. "Joint Machinery Ownership," Staff General Research Papers Archive 2045, Iowa State University, Department of Economics.
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    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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