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Alternative approaches for sharing machinery, labor, and other resources among small- and medium-sized agricultural producers

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  • Colson, Greg

Abstract

As the U.S. agriculture industry continues to become increasingly concentrated, the viability of small- and medium-sized farms faced with diminishing profit margins per unit of output hinges in part on their ability to expand operations. In this study, the solution to this problem of taking advantage of economies of scale through farm-level resource sharing arrangements is considered. Through a two phase data collection procedure, Midwestern farmer groups engaged in resource sharing arrangements were identified and investigated through a case study approach. Evidence from the case studies suggest that sharing of equipment and labor can yield not only financial benefits but also enable expansions in cultivated acreage, access to better technologies, greater operational efficiencies, and improved access to information. As well, a cost-benefit model is developed to explore the potential economies of scale in sharing machinery among multiple farms. The model quantifies the significant potential for equipment cost reductions through cooperation.

Suggested Citation

  • 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.
    • Handle: RePEc:isu:genstf:2008010108000016325
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    References listed on IDEAS

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    1. Edwards, William M., 2001. "Machinery Management: Transferring Ownership of Farm Machinery," Staff General Research Papers Archive 2044, Iowa State University, Department of Economics.
    2. 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.
    3. Edwards, William M., 2001. "Machinery Management: Estimating Farm Machinery Costs," Staff General Research Papers Archive 2038, Iowa State University, Department of Economics.
    4. 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.
    5. Edwards, William M., 2001. "Machinery Management: Farm Machinery Selection," Staff General Research Papers Archive 2042, Iowa State University, Department of Economics.
    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. Harris, Andrea & Fulton, Murray E., 2000. "Farm Machinery Co-Operatives In Saskatchewan And Quebec," Miscellaneous Publications 31756, University of Saskatchewan, Centre for the Study of Co-operatives.
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    Cited by:

    1. 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.

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