PRELIMINARY ESTIMATES OF ECONOMIES OF SIZE IN VEGETABLE PRODUCTION

Hugo V. Fueglein and Boris Bravo-Ureta

No 279011, 1984 Annual Meeting, August 5-8, Ithaca, New York from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The purpose of this paper is to present preliminary estimates of economies of size and optimal cropping patterns for vegetable production in the Connecticut River Valley. Linear programming results indicate substantial economies of size from farms up to $100,000 of gross returns and only marginal average cost savings thereafter. For the five farms analyzed, crop diversification is observed at optimal levels of output. With the exception of the two smallest farms, once output dropped to 90 percent of the optimal levels, farms specialized in one vegetable crop.

Keywords: Crop Production/Industries; Farm Management (search for similar items in EconPapers)
Pages: 18
Date: 1984-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea84:279011

DOI: 10.22004/ag.econ.279011

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