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Before‐ and After‐Tax Size Economies: An Example for Cash Grain Production in Illinois
Author(s) -
Batte Marvin T.,
Sonka Steven T.
Publication year - 1985
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 - 10.2307/1241081
Subject(s) - diseconomies of scale , receipt , cash , production (economics) , investment (military) , economics , agriculture , agricultural economics , business , economies of scale , geography , finance , accounting , macroeconomics , archaeology , politics , political science , law , microeconomics
This article reports the degree to which economies of farm size exist for commercial Illinois cash grain agriculture, both on a before‐ and after‐tax basis. Receipt, expense, and investment data are from the Illinois Farm Business Farm Management Association records, 1975–79. Analysis of covariance techniques were used in the examination of the five‐year time series of cross‐sectional data. Results indicate statistically significant evidence of economies of size, both on a before‐ and after‐tax basis. There was no significant evidence of diseconomies of size for this sample.