@article{Madden:307322,
      recid = {307322},
      author = {Madden, J. Patrick},
      title = {Economies of Size in Farming:  Theory, Analytical  Procedures, and a Review of Selected Studies },
      address = {1967-02},
      number = {1473-2020-1079},
      series = {Agricultural Economic Report No. 107},
      pages = {87},
      year = {1967},
      abstract = {Excerpts from the report Highlights:  Selected studies of  the  economies of size in crop production, specialized beef  feedlots, and dairy farms were reviewed.  The theoretical  basis for analyzing economies of size was discussed, and  several alternative analytical procedures were examined.   The analytical procedure that provides the most reliable  results in studying economies of size in farming is the  synthetic-firm or economic-engineering approach.  When the  farm organization includes relatively few choices, this  type of analysis may be done through manual budgeting.  But  when more complex farming operations are analyzed, linear  programming is helpful.  Choice of a residual claimant (the  factors that absorb profit) strongly influences the height  and shape of the average cost curve.  For example, as more  factors are included in the residual claimant, total cost  is reduced, thus lowering average cost.  A modified concept  of the farm firm--viewing the farm as a goods-and-services  firm--provides a realistic basis for explaining the  persistence of a relatively large number of small farms and  part-time farms.  This concept also helps to account for  the rising importance of custom-hired farm operations.  A  number of studies of crop-farming situations in various  States were reviewed.  In most of these situations, all of  the economies of size could be achieved by modern and fully  mechanized 1-man or 2-man farms.},
      url = {http://ageconsearch.umn.edu/record/307322},
      doi = {https://doi.org/10.22004/ag.econ.307322},
}