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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
  • Colson, Gregory
  • Ginder, Roger

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 & Colson, Gregory & Ginder, Roger, 2010. "A Return of the Threshing Ring? A Case Study of Machinery and Labor-Sharing in Midwestern Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(4), pages 805-819, November.
  • Handle: RePEc:cup:jagaec:v:42:y:2010:i:04:p:805-819_00
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    References listed on IDEAS

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    1. Fulton, Murray E. & Harris, Andrea, 2000. "The Cuma Farm Machinery Co-Operatives," Miscellaneous Publications 31774, University of Saskatchewan, Centre for the Study of Co-operatives.
    2. Bronwyn H. Hall & Beethika Khan, 2003. "Adoption of New Technology," NBER Working Papers 9730, National Bureau of Economic Research, Inc.
    3. McBride, William D., 2012. "Production Costs Critical to Farming Decisions," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8, July.
    4. 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.
    5. 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).
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Edwards, William M., 2001. "Joint Machinery Ownership," Staff General Research Papers Archive 2045, Iowa State University, Department of Economics.
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    Cited by:

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    2. Simon Cornée & Madeg Le Guernic & Damien Rousselière, 2020. "Governing Common-Property Assets: Theory and Evidence from Agriculture," Journal of Business Ethics, Springer, vol. 166(4), pages 691-710, November.
    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.
    4. Min‐Han Tsai & Yir‐Hueih Luh, 2023. "Group heterogeneity and the economic effect of farmer organisation participation: Empirical evidence from Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 473-491, June.
    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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    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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