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Cost Efficiency in U.S. Corn Production

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  • Stephen C. Cooke
  • W. Burt Sundquist

Abstract

Diewert's quadratic lemma is used to derive indexes of intertemporal and interregional cost efficiency and of economies of scale for a sample of U.S. corn regions. Using U.S. Department of Agriculture farm enterprise survey data, the results indicate that intertemporal cost efficiency in U.S. corn production increased 1.3% per year, on average, between 1974 and 1983. Regions in Illinois and Iowa have a competitive advantage in corn production over those in Indiana and Nebraska. Between 1974 and 1983, very large corn enterprises (500–1,000 acres) were 4%–8% more cost efficient than large enterprises (300–460 acres) and 8%–15% more efficient than medium size corn enterprises (175–290 acres).

Suggested Citation

  • Stephen C. Cooke & W. Burt Sundquist, 1989. "Cost Efficiency in U.S. Corn Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 1003-1010.
    • Handle: RePEc:oup:ajagec:v:71:y:1989:i:4:p:1003-1010.
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    File URL: http://hdl.handle.net/10.2307/1242676
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    Cited by:

    1. Abdullahi Abdulkadri & Michael Langemeier & Allen Featherstone, 2006. "Estimating economies of scope and scale under price risk and risk aversion," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 191-201.
    2. Cooke, Stephen C., 1991. "Alternative Uses For Crop And Livestock Enterprise Budgets In Research And Extension," A.E. Extension Series 304922, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    3. Peterson, Willis L., 1997. "Are Large Farms More Efficient?," Staff Papers 13411, University of Minnesota, Department of Applied Economics.
    4. Kivanda, Lena & Fox, Glenn, 1993. "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    5. Cooke, Stephen C. & Sundquist, W. Burt, 1991. "Measuring And Explaining The Decline In U.S. Cotton Productivity Growth," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-16, July.

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