Before‐ and After‐Tax Size Economies: An Example for Cash Grain Production in Illinois

This article reports the degree to which economies of farm size exist for commercial Illinois cash grain agriculture, both on a before‐ and after‐tax basis. Receipt, expense, and investment data are from the Illinois Farm Business Farm Management Association records, 1975–79. Analysis of covariance techniques were used in the examination of the five‐year time series of cross‐sectional data. Results indicate statistically significant evidence of economies of size, both on a before‐ and after‐tax basis. There was no significant evidence of diseconomies of size for this sample.