Economies of Size of Illinois Cash Grain Hog Farms

Cover Economies of Size of Illinois Cash Grain Hog Farms
Economies of Size of Illinois Cash Grain Hog Farms
Roy Neuman Van Arsdall
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Farm expansion, even at modest levels, commonly requires the acquisition of non-contiguous tracts of land. It is not uncommon for one- man, cash-grain farms to include three or four tracts of land separated by several miles and under different ownership. Such locational fragmen- tation necessarily results in operational inefficiencies resulting from higher transport costs from headquarters to work areas and increasing difficulty of worker supervision.
7969] ECONOMIES OF SIZE OF ILLINOIS FARMS 4
...9 Ownership fragmentation of land operated as a single farm business may also affect the optimal combination and hence cost of production. A cash-grain farm may in practice require more men and smaller equip- ment to assure each landlord of timely performance of the field work on his particular tract of land. The input-output coefficients used in this study do not reflect differences caused by distance or fragmentation of land holdings. Hence, the larger farms may in actuality have higher costs than here assumed.

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