Inside the Corn Industry

Inside the Corn Industry — page 5
Farming equipment often requires a large-scale upfront investment acquiring expensive equipment and hiring workers If a family does not want to buy machinery that could cost millions of dollars it can rent the equipment or hire outside companies to do some of the work such as preparing fields or harvesting crops This strategy makes the risk of starting a new farm relatively low However if farmers do want to purchase their own equipment they can benefit from economy of scale This means that the more land a farmer has the less expensive it is to farm For instance the same combine can harvest 1,000 acres 405 ha or 2,000 acres 810 ha The cost to farm each acre goes down the more land the farmer owns 8