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Abstract
Contractual arrangements for joint machinery ownership between independent agribusinesses
are explored. A two-farm economic simulation model of locations in Texas,
Colorado, and Montana is developed to provide insight associated with sharing combines.
Important variables include combine size (efficiency), yield losses resulting from untimely
access to equipment, the penalty structure for untimely delivery, and cost-sharing and
depreciation deductions claimed between producers. Combine sharing is risk-reducing in
most cases. The gains to both parties are lowest when harvesting periods overlap. While
the value of sharing is positive under many scenarios, benefits from sharing are small
relative to total farm revenue.