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Size Economies on Grain Farms

About This Publication

An often-asked question is whether larger grain farms have lower per acre costs than smaller grain farms. In this paper, data from the Illinois Farm Business Farm Management (FBFM) Association are used to address this question. We find that per acre costs for farm sizes in size categories less than 800 to 1,200 acres are higher than for larger farm size categories. Total costs are relatively constant across categories for categories above 1,200 acres.

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