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A Return of the Threshing Ring? Motivations, Benefits and Challenges of Machinery and Labor Sharing Arrangements

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Listed:
  • Artz, Georgeanne M.
  • Colson, Gregory J.
  • Ginder, Roger

Abstract

Cooperative approaches provide an alternative for small- and medium-sized producers to obtain the efficiencies of large farming operations and remain competitive in an increasingly concentrated agricultural industry. This article examines the motivation and effectiveness of equipment and labor sharing arrangements in the Midwestern US. Case study evidence shows that in addition to cost savings, access to skilled, seasonal labor is an important motivation for farm-level cooperation. Key factors identified for successful cooperative agreements include compatibility of operations and members' willingness to communicate and adapt. Sharing resources is found to improve farm profitability, efficiency and farmers' quality of life.

Suggested Citation

  • Artz, Georgeanne M. & Colson, Gregory J. & Ginder, Roger, 2009. "A Return of the Threshing Ring? Motivations, Benefits and Challenges of Machinery and Labor Sharing Arrangements," Staff General Research Papers Archive 13065, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:13065
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    References listed on IDEAS

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    1. 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.
    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. 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).
    4. 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.
    5. 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.
    6. 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.
    7. Bronwyn H. Hall & Beethika Khan, 2003. "Adoption of New Technology," NBER Working Papers 9730, National Bureau of Economic Research, Inc.
    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. Edwards, William M., 2001. "Joint Machinery Ownership," Staff General Research Papers Archive 2045, Iowa State University, Department of Economics.
    10. 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.
    11. Hall, Bronwyn H. & Khan, Beethika, 2003. "Adoption of New Technology," Department of Economics, Working Paper Series qt3wg4p528, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    12. 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.
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    Cited by:

    1. Feil, J.-H. & Anastassiadis, F. & Mußhoff, O. & Kasten, P., 2016. "Analysing Farmers’ Preferences fo Collaborative Arrangements: An Experimental Approach," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 51, March.
    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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    More about this item

    Keywords

    machinery sharing; skilled farm labor; productivity; farm-level cooperations;
    All these keywords.

    JEL classification:

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

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    This paper has been announced in the following NEP Reports:

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