Evidence of Scope Economies in the Australian Wheat-Sheep Zone
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Scope economies can be used in studies of farming systems to provide a
measure of synergies between different farm enterprises and between activities
within farm enterprises. In this paper, they are reported for farms in a
benchmarking group in the Wheat-Sheep Zone in New South Wales, Australia,
by estimating a stochastic input distance function and calculating an ‘economies
of scope parameter’. Evidence is presented of scope economies between sheep
and beef enterprises, sheep and crop enterprises, and beef and crop enterprises.