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Input purchasing advantages associated with farm size

  • Mathematics


A random sample of Ohio farm operators was queried about the price discounts received on seed, fertilizer, pesticides, and machinery. Analysis of the survey data found that, consistent with the findings of previous studies, large farmers (1000 + acres) received higher discounts than smaller farmers. Significantly, the analysis also found that the average discount increased over all farm sizes investigated. Therefore, not just the largest farm operators reported significant discounts. Lastly, substantial variation was found in the discounts reported by farm operators with the same size operation.

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