THE USDA FIRM ENTERPRISE DATA SYSTEM: CAPABILITIES AND APPLICATIONS

Public Economics,

Farm size and cost relationships in relation to recent machine technology: An analysis of potential farm change by static and game theoretic methods

This study includes estimates of the relation of more recent machine technology to per-unit costs of crop production for farms of different sizes. The types of new machine technology of particular interest include large-capacity equipment such as 4- and 6-row corn planting and cultivating equipment and picker-sheller harvesting machines. A hypothesis generally held by persons concerned with agriculture is that these large-capacity machines, with high fixed costs which must be spread over more acres, stand to cause an important increase in farm size. This study is based on data for the Carrington-Clyde soils in northeast Iowa and the Ida-Monona soils in western Iowa. Cost functions are estimated for farms of different sizes or acreages by budgeting procedures. More specifically, cost curves are derived as a function of acreage per farm. Losses in crop production resulting from untimely field operations are considered as costs for different acreages and are related to particular machine combinations. Parametric linear programming is used to permit analyses of livestock optimum enterprises and to consider the effect of subjective discounting of returns on size considerations. For decision making under risk and uncertainty, game theory models were employed to incorporate consideration of weather variations on optimal machinery-land or farm-size relationships

How Big Will Our Farms Get? Report No. 2

Ten years ago, a study similar to the one reported here indicated that 240 acres were large enough to realize most of the cost economies coming from farm size alone. But machinery improvements since have changed the picture

Profit-maximizing plans and static supply schedules for fluid milk in the Des Moines milkshed

The objectives of the study reported here were (1) to develop profit-maximizing production plans for dairy farms in the Des Moines area and (2) to derive aggregate fluid milk supply schedules for the area based on these optimum plans. The dairy farms in the area were classified into 24 categories on the basis of acreage, soil type. tenure and dairy-building resources. Optimum plans were developed for an average farm in each category at two levels of production per cow. Plans were developed for the short run and for two long-run planning periods. In plans for the short-run situation, buildings and the supply of operating capital are considered fixed at about current levels. In the long-run plans, buildings are considered variable, and operating capital is limited only by the requirement that it earn at least 5 percent return on investments. Special long-run plans also were developed with allowance for advancement in production techniques. These plans were developed using linear programming techniques utilizing a variable price for fluid milk. In addition to the usual on-farm enterprises, two off-farm alternatives are included. All labor may be hired out at $0.50 per hour, and capital may be loaned at 5 percent interest. The presence of these alternatives makes it requisite that on-farm .enterprises bring at least these minimum returns, or the resources will not be used on the farm

Projection of Farm Numbers for North Dakota With Markov Chains

The Markov process was first applied in economics to problems of relative structure, as for example in the analysis of income and wage distributions. The extension of such distributions over time was an initial step in projection. The analysis in this paper takes a further step by developing a method for making projections of absolute numbers from an appropriately modified Markov base. This new departure represents both a weakness and a strength; weakness because the modifying assumptions abstract considerably from reality, but strength because the technique covers a broader area of obvious need