A Return of the Threshing Ring? A Case Study of Machinery and Labor-Sharing in Midwestern Farms

Abstract

Machinery-sharing provides an alternative for smaller producers to obtain the efficiencies of large farming operations and remain competitive in an increasingly concentrated agricultural industry. This research uses a multiple case study design to examine the motivations for sharing equipment and labor among farms and to better understand how group members handle the transaction costs of sharing. Our case evidence finds that in addition to cost savings, access to reliable labor is an important motivation for participating in a sharing arrangement. Trust and frequent communication among group members helps to minimize the transaction costs incurred from sharing.machinery sharing, transaction costs, farm-level cooperation, Agribusiness, Agricultural Finance, Community/Rural/Urban Development, Crop Production/Industries, Farm Management, Financial Economics, Labor and Human Capital, Land Economics/Use, Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Q12, Q13,