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Farm Size and Economic Efficiency: The Case of California
Author(s) -
Hall Bruce F.,
LeVeen E. Phillip
Publication year - 1978
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240243
Subject(s) - acre , enforcement , economic efficiency , land reclamation , production (economics) , economics , agricultural economics , economic analysis , natural resource economics , business , agricultural science , environmental science , microeconomics , geography , archaeology , political science , law
The relationship between farm size and production costs is examined using current data. The analysis indicates that relatively modest sized farms can achieve a major portion of the possible cost savings associated with size. The sources of efficiency are examined, and it is shown that factors other than labor‐saving technology may be important contributors to economic efficiency. The implications of this analysis are developed for the current debate over acreage restrictions in reclamation policy. Strict enforcement of the 160‐acre limit could cause a modest overall efficiency loss, but this would be borne by landowners rather than consumers.