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Abstract The relationship between farm size and production costs is examined using current data. The analysis indicates that relatively modest sized farms can achieve a major portion of the possible cost savings associated with size. The sources of efficiency are examined, and it is shown that factors other than labor‐saving technology may be important contributors to economic efficiency. The implications of this analysis are developed for the current debate over acreage restrictions in reclamation policy. Strict enforcement of the 160‐acre limit could cause a modest overall efficiency loss, but this would be borne by landowners rather than consumers.
Hall et al. (1978) studied this question.
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