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

Marvin Batte and Steven T. Sonka

American Journal of Agricultural Economics, 1985, vol. 67, issue 3, 600-608

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.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:67:y:1985:i:3:p:600-608.

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