Estimates of Before and After Tax Scale Economies For a Sample of Illinois Cash Grain Farms

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1981-07

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Ohio State University. Department of Agricultural, Environmental and Development Economics

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The primary purpose of this study was to investigate the degree of economies of scale existing, on a before and an after tax basis, for a sample of commercial Illinois farms. Results of the analysis indicate substantial scale economies both before and after taxes for this sample of cash grain producers. The cost curves were typically L-shaped, with major cost reductions occurring by the time farm size reached 500 tillable acres.

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