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Before- and After-Tax Size Economies: An Example for Cash Grain Production in Illinois

Author

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  • Marvin T. Batte
  • Steven T. Sonka
Abstract
This article reports the degree to which economies of farm size exist for commercial Illinois cash grain agriculture, both on a before- and after-tax basis. Receipt, expense, and investment data are from the Illinois Farm Business Farm Management Association records, 1975–79. Analysis of covariance techniques were used in the examination of the five-year time series of cross-sectional data. Results indicate statistically significant evidence of economies of size, both on a before- and after-tax basis. There was no significant evidence of diseconomies of size for this sample.

Suggested Citation

  • Marvin T. Batte & Steven T. Sonka, 1985. "Before- and After-Tax Size Economies: An Example for Cash Grain Production in Illinois," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 600-608.
    • Handle: RePEc:oup:ajagec:v:67:y:1985:i:3:p:600-608.
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    File URL: http://hdl.handle.net/10.2307/1241081
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    Citations

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    Cited by:

    1. Peterson, Willis L., 1997. "Are Large Farms More Efficient?," Staff Papers 13411, University of Minnesota, Department of Applied Economics.
    2. Unknown, 1998. "Commodity Costs and Returns Estimation Handbook (entire book-condensed file)," Commodity Costs and Returns Estimation Handbook,, Iowa State University.
    3. Huffman, Wallace E. & Evenson, Robert E., 2000. "Structural and productivity change in US agriculture, 1950-1982," Agricultural Economics, Blackwell, vol. 24(2), pages 127-147, January.
    4. Unknown, 1998. "References/Literature Cited," Commodity Costs and Returns Estimation Handbook,, Iowa State University.
    5. Robert E. Evenson & Wallace B. Huffman, 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Working Papers 773, Economic Growth Center, Yale University.
    6. Forster, D. Lynn & Stout, Thomas T., 1988. "Commercial Agriculture Versus The Farm Home," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270157, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Gustafson, Cole R. & Barry, Peter J. & Sonka, Steven T., 1988. "Machinery Investment Decisions: A Simulated Analysis For Cash Grain Farms," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-10, December.
    8. Knutson, Ronald D. & Richardson, James W. & Smith, Edward G. & Rister, M. Edward & Grant, Warren R. & Lippke, Lawrence A. & Israelsen, Craig L., 2002. "Economic Impacts of Farm Program Payment Limits," Working Papers 42717, Texas A&M University, Agricultural and Food Policy Center.
    9. Miller, James C. & Coble, Keith H. & Vergara, Oscar, 2003. "Farm Program Payments And Economies Of Scale," 2003 Annual meeting, July 27-30, Montreal, Canada 22231, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Evenson, Robert E. & Huffman, Wallace E., 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Center Discussion Papers 28518, Yale University, Economic Growth Center.
    11. Kislev, Yoav & Peterson, Willis L., 1991. "Economies Of Scale In Agriculture: A Reexamination Of The Evidence," Staff Papers 13652, University of Minnesota, Department of Applied Economics.
    12. Fertő, Imre, 2002. "A mezőgazdasági termelés szerkezetének változásai a fejlett országokban, II. Az üzemnagyság és a mérethozadék problémája a mezőgazdaságban [Changes in the structure of agricultural production in th," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 760-773.

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