Saturday, December 03, 2011

Why Do Farms Grow Bigger?

The University of Illinois reports on levels of debt and machinery costs, which says farmers are investing but not overextending.   But one chart caught my eye: it's a graph showing the per acre debt/machinery costs by farm size.  The curve descends, slowly but steadily.  In other words, the bigger the farm, the more acres you can spread the cost of equipment over.  What a surprise.

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