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A Return of the Threshing Ring? A Case Study of Machinery and Labor-Sharing in Midwestern Farms

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  • Artz, Georgeanne M.
  • Colson, Gregory
  • Ginder, Roger G.

Abstract

Machinery-sharing provides an alternative for smaller producers to obtain the efficiencies of large farming operations and remain competitive in an increasingly concentrated agricultural industry. This research uses a multiple case study design to examine the motivations for sharing equipment and labor among farms and to better understand how group members handle the transaction costs of sharing. Our case evidence finds that in addition to cost savings, access to reliable labor is an important motivation for participating in a sharing arrangement. Trust and frequent communication among group members helps to minimize the transaction costs incurred from sharing.

Suggested Citation

  • Artz, Georgeanne M. & Colson, Gregory & Ginder, Roger G., 2010. "A Return of the Threshing Ring? A Case Study of Machinery and Labor-Sharing in Midwestern Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(4), pages 1-15, November.
    • Handle: RePEc:ags:joaaec:100515
    DOI: 10.22004/ag.econ.100515
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    1. Sexton, Richard J. & Iskow, Julie, 1988. "Factors Critical to the Success or Failure of Emerging Agricultural Cooperatives," Information Series 11921, University of California, Davis, Giannini Foundation.
    2. Foreman, Linda F., 2006. "Characteristics and Production Costs of U.S. Corn Farms, 2001," Economic Information Bulletin 7205, United States Department of Agriculture, Economic Research Service.
    3. Artz, Georgeanne M. & Edwards, William & Olson, Frayne, 2009. "Farm Machinery & Labor Sharing Manual," Staff General Research Papers Archive 34482, Iowa State University, Department of Economics.
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    7. Roe, Joshua D., 2005. "Value Added What??...Horizontal versus Vertical Expansion in Iowa Production Agriculture," 2005 Annual meeting, July 24-27, Providence, RI 19570, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Colson, Greg, 2008. "Alternative approaches for sharing machinery, labor, and other resources among small- and medium-sized agricultural producers," ISU General Staff Papers 2008010108000016325, Iowa State University, Department of Economics.
    9. Harris, Andrea & Fulton, Murray E., 2000. "Farm Machinery Co-Operatives: An Idea Worth Sharing," Miscellaneous Publications 31762, University of Saskatchewan, Centre for the Study of Co-operatives.
    10. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261, Elsevier.
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    Cited by:

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    3. Leppälä, Jarkko & Rautiainen, Risto & Kauranen, Ilkka, 2015. "Analysis of risk management tools applicable in managing farm risks: A literature review," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 4(3), April.
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    5. Yiorgos Gadanakis & Jorge Campos-González & Philip Jones, 2024. "Linking Entrepreneurship to Productivity: Using a Composite Indicator for Farm-Level Innovation in UK Agriculture with Secondary Data," Agriculture, MDPI, vol. 14(3), pages 1-23, March.

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