Title

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

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2010

Journal or Book Title

Journal of Agricultural and Applied Economics

Volume

42

Issue

4

First Page or Article ID Number

805

Last Page

819

DOI

10.1017/S1074070800003977

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.

JEL Classification

Q12, Q13

Comments

This is a working paper of an article published in Journal of Agricultural and Applied Economics, Vol. 42 no. 4 (November 2010): 805, doi: 10.1017/S1074070800003977.