The Citizen, 1996-03-20, Page 51Agriculture 1996
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THE CITIZEN, WEDNESDAY, MARCH 20, 1996. PAGE A-27.
No studies to show diseconomies of scale
Continued from A-4
Small village and town
economies can be destroyed.
As for purchasing feed in larger
volumes, Durand says there is little
price savings when buying more
than a 35 tonne load of corn per
month, an amount easily consumed
by a small operation. There is a
small advantage to a trailer load of
soymeal, he says.
With marketing boards in place,
Durand says there is no advantage
for the producer who can take
1,000 animals to market as opposed
to one who takes 100. Everyone
gets the same price. Larger opera-
tors may have to split the profit
between 10 workers though, while
the individual farmer just feeds his
family, says Durand.
Whether it be a corporation farm
or an expanding family operation,
farms in Huron, Middlesex, on the
prairies (and other Ontario coun-
ties) are getting as large as the cor-
porate ones. "That is the trend,"
says Fletcher.
"As far as I am aware, there has
not been any studies to show dis-
economies of scale. There are no
reports of an operation getting too
large to cause negative results, in
terms of agriculture outputs," says
Hecht.
For all producers, whether it be
in cash crops or livestock, it is the
juggling act between expansion and
increased outputs and the risk of
environmental, social (odours) con-
cerns and family needs which will
create an equilibrium in the agricul-
ture sector.
True or
false
answers
Continued from A-23
drawbar height, starting a heavy
load quickly, and immobilizing the
rear wheels are all practices that
can cause a tractor to overturn to
the rear.
10. True. According to recommend-
ed speed-weight ratio guidelines,
20 mph is the maximum speed
when towing a load not equipped
with brakes that weighs the same or
less than the tractor. Reduce
maximum speed to 10 mph when
towing a load up to double the
tractor weight. Do not tow loads
that exceed twice the tractor
weight. Reduce speed and use
additional caution when towing
loads under adverse surface
conditions, when turning, and on
inclines.
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