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Cost-Size Relationships of North Dakota Ranches

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Title: Cost-Size Relationships of North Dakota Ranches
Author: Leistritz, F. Larry; Schneeberger, Walter
Description: The article addresses the relationship between cost versus ranch size. Ranchers observed that the costs of resources used in their ranch businesses were increasing at a faster rate than the prices they received for their product which was beef cattle. This phenomenon, was termed the "cost-price squeeze". This reduces the margin between receipts and costs per animal sold. Several researchers have studied the ranch cost-size relationships using ranch survey data, which may be obscured by differences in management ability, range condition and related factors among ranchers surveyed. A study, using linear programming, was employed to determine was conducted to help determine the production costs for ranches of varying sizes in south-western North Dakota. the results are presented. Costs per unit of gross income decrease sharply as ranch size increases from a one-man operation to a two or three-man ranch, but cost benefit is slight when four-man.
Date: 1973
Subject: Ranching
Farm management
Permalink: http://hdl.handle.net/10365/9790

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