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Economies of Size in Grain Farming in Saskatchewan and the Potential Impact of Rail Rationalization Proposals
Author(s) -
Fleming Marion S.,
Uhm Ihn H.
Publication year - 1982
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - French
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1982.tb01961.x
Subject(s) - rationalization (economics) , economy , distribution (mathematics) , tonnage , production (economics) , agricultural economics , economics , geography , oceanography , geology , mathematical analysis , mathematics , macroeconomics , microeconomics
This paper empirically examines the economies of size in both grain production and distribution by farm truck in Saskatchewan by using farm level data, and confirms that economies of size prevail. The examination also shows that economies of size in farm trucking reinforce the economies in production. The policy implication is such that the potential impact of an increase in rail freight rates and branch line abandonment would have a differential impact on individual producer's net income by farm size. En utilisant les données relev'ees au niveau des fermes, ce document examine d'une façon empirique les exploitations agricoles de la Saskatchewan importantes tant du point de vue de la production céréaliere que de la distribution par camionnage et confirme que ce genre d'exploitations prédomine. L'analyse montre aussi que le camionnage par gros tonnage renforce la production. L'impact potentiel d'une augmentation des tarifs ferroviaires et I'abandon des voies d'embranchement auraient un impact sur le revenu net de chaque producteur variant selon la grandeur de son exploitation.