<https://farmdocdaily.illinois.edu/2023/05/producer-sentiment-and-farm-growth.html#webpage>
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"Michael Langemeier and James Mintert - Michael Langemeier - There are numerous reasons why a farm may want to expand including the following: reduce costs, improve profit margins, improve asset utilization, bring in new family members, invest retained earnings, and more fully utilize the skills of key managers.  The first three reasons are related to economies of size.  In general, larger businesses have lower per-unit costs, higher profit margins, and are able to more fully utilize assets such as machinery and buildings, which improves the asset turnover ratio.  Larger businesses also tend to retain more of their retained earnings (net farm income minus owner withdrawals), investing these retained earnings back into the business is a common strategy in family-owned businesses such as farms. "
<https://farmdocdaily.illinois.edu/2023/05/producer-sentiment-and-farm-growth.html>