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Economies Of Size, Volume And Diversification In Retail Grain And Farm Supply Businesses, D. G. Anderson, D. L. Helgeson

Historical Research Bulletins of the Nebraska Agricultural Experiment Station

This study revealed substantial cost savings could accrue to grain and farm supply businesses from plants of larger size. Given sufficient competitive pressures, farmers and consumers might benefit as well from these savings. A continuation of the present trend toward larger, more diverse firms seems likely. Existing firms of sub-optimum size and product structures will probably remain in operation until they are depreciated out. Relatively modest savings from diversified structures make any rapid trend toward one-stop centers unlikely.