Revisiting economies of scale: the moderating role of efficiency in corn farming
IntroductionThis study extends prior work on economies of scale by introducing efficiency as a moderating factor in agricultural economies of scale. By incorporating regional heterogeneity, the paper provides a new framework for understanding scale expansion in diverse agricultural environments, off...
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Frontiers Media S.A.
2025-06-01
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| Series: | Frontiers in Sustainable Food Systems |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fsufs.2025.1621038/full |
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| author | Nianning Zhang Qing Zhang Xianhui Geng |
| author_facet | Nianning Zhang Qing Zhang Xianhui Geng |
| author_sort | Nianning Zhang |
| collection | DOAJ |
| description | IntroductionThis study extends prior work on economies of scale by introducing efficiency as a moderating factor in agricultural economies of scale. By incorporating regional heterogeneity, the paper provides a new framework for understanding scale expansion in diverse agricultural environments, offering insights that can guide policies for more sustainable agricultural production.MethodsThe study examines how efficiency affects economies of scale in corn production using data from the China Rural Revitalization Survey (CRRS). A double stochastic frontier model with two-stage least squares is employed to isolate efficiency loss and address scale endogeneity via instrumental variables.ResultsThe results reveal a significant U-shaped relationship between land operating scale and unit production cost. Insufficient efficiency under expanded scale increases costs, highlighting the need for sustainable resource allocation to balance productivity and long-term agricultural viability. Furthermore, efficiency moderates economies of scale, exhibiting regional heterogeneity.DiscussionThe policy implications include optimizing factor allocation through tiered management training, improving the land transfer market to reduce transaction costs, and deploying digital infrastructure and cross-regional service alliances to mitigate regional disparities. This study provides evidence on the role of managerial ability in efficiency, which optimizing economies of scale, demonstrating how resource efficient practices reduce input waste and align agricultural growth with ecological preservation. This study provides evidence that managerial ability in efficiency not only lowers production costs but also reduces resource waste, thereby supporting the dual goals of economic viability and environmental sustainability in agriculture. These insights inform policies to scale farming operations without compromising ecological integrity. |
| format | Article |
| id | doaj-art-443bfe0ac06a4c48bca787e806828ff7 |
| institution | OA Journals |
| issn | 2571-581X |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Sustainable Food Systems |
| spelling | doaj-art-443bfe0ac06a4c48bca787e806828ff72025-08-20T02:35:30ZengFrontiers Media S.A.Frontiers in Sustainable Food Systems2571-581X2025-06-01910.3389/fsufs.2025.16210381621038Revisiting economies of scale: the moderating role of efficiency in corn farmingNianning Zhang0Qing Zhang1Xianhui Geng2College of Economics and Management, Nanjing Agricultural University, Nanjing, ChinaBusiness School, Hunan First Normal University, Changsha, Hunan, ChinaCollege of Economics and Management, Nanjing Agricultural University, Nanjing, ChinaIntroductionThis study extends prior work on economies of scale by introducing efficiency as a moderating factor in agricultural economies of scale. By incorporating regional heterogeneity, the paper provides a new framework for understanding scale expansion in diverse agricultural environments, offering insights that can guide policies for more sustainable agricultural production.MethodsThe study examines how efficiency affects economies of scale in corn production using data from the China Rural Revitalization Survey (CRRS). A double stochastic frontier model with two-stage least squares is employed to isolate efficiency loss and address scale endogeneity via instrumental variables.ResultsThe results reveal a significant U-shaped relationship between land operating scale and unit production cost. Insufficient efficiency under expanded scale increases costs, highlighting the need for sustainable resource allocation to balance productivity and long-term agricultural viability. Furthermore, efficiency moderates economies of scale, exhibiting regional heterogeneity.DiscussionThe policy implications include optimizing factor allocation through tiered management training, improving the land transfer market to reduce transaction costs, and deploying digital infrastructure and cross-regional service alliances to mitigate regional disparities. This study provides evidence on the role of managerial ability in efficiency, which optimizing economies of scale, demonstrating how resource efficient practices reduce input waste and align agricultural growth with ecological preservation. This study provides evidence that managerial ability in efficiency not only lowers production costs but also reduces resource waste, thereby supporting the dual goals of economic viability and environmental sustainability in agriculture. These insights inform policies to scale farming operations without compromising ecological integrity.https://www.frontiersin.org/articles/10.3389/fsufs.2025.1621038/fullefficiencyeconomies of scaleallocative efficiencyendogeneity treatmentregional heterogeneity |
| spellingShingle | Nianning Zhang Qing Zhang Xianhui Geng Revisiting economies of scale: the moderating role of efficiency in corn farming Frontiers in Sustainable Food Systems efficiency economies of scale allocative efficiency endogeneity treatment regional heterogeneity |
| title | Revisiting economies of scale: the moderating role of efficiency in corn farming |
| title_full | Revisiting economies of scale: the moderating role of efficiency in corn farming |
| title_fullStr | Revisiting economies of scale: the moderating role of efficiency in corn farming |
| title_full_unstemmed | Revisiting economies of scale: the moderating role of efficiency in corn farming |
| title_short | Revisiting economies of scale: the moderating role of efficiency in corn farming |
| title_sort | revisiting economies of scale the moderating role of efficiency in corn farming |
| topic | efficiency economies of scale allocative efficiency endogeneity treatment regional heterogeneity |
| url | https://www.frontiersin.org/articles/10.3389/fsufs.2025.1621038/full |
| work_keys_str_mv | AT nianningzhang revisitingeconomiesofscalethemoderatingroleofefficiencyincornfarming AT qingzhang revisitingeconomiesofscalethemoderatingroleofefficiencyincornfarming AT xianhuigeng revisitingeconomiesofscalethemoderatingroleofefficiencyincornfarming |