Before- and after-tax size economies: An example for cash grain production in illinois

Marvin T. Batte, Steven T. Sonka

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish (US)
Pages (from-to)600-608
Number of pages9
JournalAmerican Journal of Agricultural Economics
Volume67
Issue number3
DOIs
StatePublished - Aug 1985

Keywords

  • Analysis of covariance
  • Cash grain
  • Economies of size
  • Illinois
  • Income taxes

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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