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Economies in buying and selling and in lower investments in machinery found on large wheat farms are partially offset by higher costs for labor and other hired services. Rates of return to equity before income taxes increase with farm size, but rates of return after taxes are very similar regardless of size. The number of large farms will probably increase most rapidly during periods of good prices and good weather. Continued growth in numbers is expected but management rather than capital may be the limiting factor. Growth in the number of large farms is likely to have depressing effects on smalltown merchants who are bypassed by large farmers.


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