Cost efficiency in U.S. corn production
1989
Cooke, S.C. | Sundquist, W.B.
Diewert's quadratic lemma is used to derive indexes of intertemporal and interregional cost efficiency and of economies of scale for a sample of U.S. corn regions. Using U.S. Department of Agriculture farm enterprise survey data, the results indicate that intertemporal cost efficiency in U.S. corn production increased 1.3% per year, on average, between 1974 and 1983. Regions in Illinois and Iowa have a competitive advantage in corn production over those in Indiana and Nebraska. Between 1974 and 1983, very large corn enterprises (500-1,000 acres) were 4%-8% more cost efficient than large enterprises (300-460 acres) and 8%-15% more efficient than medium size corn enterprises (175-290 acres).
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