Challenging Small‐Scale Farming: A Non‐Parametric Analysis of the (Inverse) Relationship Between Farm Productivity and Farm Size in Burundi

We use a non‐parametric approach to investigate the (inverse) relationship between farm productivity and farm size. A kernel regression is used on data of mixed cropping systems to study the determinants of production including different factors that have been identified in literature as missing variables in the testing of the inverse relationship such as soil quality, location and household heterogeneity. Household data on farm activities and crop production were gathered from 640 households in 2007 in two Northern provinces of Burundi. Our results do not reject the findings of an inverse relationship between farm size and productivity. However, we find that size returns vary substantially with farm size, that is, between 0.2 for the smallest farms and 0.8 for the largest farms. Other factors that significantly affect production include soil quality. Finally, we find a significant positive association between food security and farm size.     

土地流转背景下农户经营规模与土地生产率关系再审视——来自固定粮农和地块的证据

农户经营规模和土地生产率关系是发展经济学领域的经典议题之一。本文在土地流转加速发展的背景下讨论了我国农户经营规模扩大对土地生产率的影响以及测量两者之间关系面临的种种干扰。除了农户规模本身的作用外,理论和实证检验均表明存在土地流转市场时不同规模农户在土地生产率上的差异还可能源于农户和土地的异质性,譬如土地更多流向经营能力强的农户、流转多劣地等等。基于固定农户的固定地块数据可以有效控制异质性的实证策略,本文利用4个省两期跟踪调查数据对两者关系进行了再检验。研究发现,来自固定农户固定地块的证据表明农户土地经营规模扩大并不会影响粮食单产,而不控制固定地块时往往会得到两者负相关的伪结论,并且仅控制固定农户时上述伪结论更为明显。这一结果意味着不必担心规模经营会威胁粮食供给。     

Productivity and farm size in Australian agriculture: reinvestigating the returns to scale

A positive relationship between farm size and farm productivity is often considered to be largely due to increasing returns to scale in farm production. However, using farm‐level data for the Australian broadacre industry, we found that constant or mildly decreasing returns to scale is the more typical scenario. In this study, the marginal returns to various farm inputs are compared across farms with different sizes. We found that large farms achieved higher productivity by changing production technology rather than increasing scale alone. The results highlight the disparity between ‘returns to scale’ and ‘returns to size’ in the industry, suggesting that productivity improvement among smaller farms can be made through increasing their ability to access advanced technologies, rather than simply expanding their scale.     

Plot size and maize productivity in Zambia: is there an inverse relationship?

This article examines the relationship between maize productivity and plot size in Zambia. It offers a unique empirical approach. First, it focuses on maize, which is the major crop on small and medium size farms in Zambia, but also accounts for the endogenous determination of the size of the plot devoted to maize. Previous studies have used total farm size or harvested area. Second, it corrects for selectivity in maize cultivation. Third, it controls for differences in land quality and weather conditions across districts. Finally, it offers a structural interpretation of the above framework by modeling farm decisions as a sequential, two‐stage process, in which land is first allocated to the different crops based on the information set of the farmers at the time of planting, and the yield is affected by subsequent application of inputs, the quantities of which may depend on additional information that is revealed after planting. We use this recursive structure and the differences in the information sets over time to identify the model. The results show that the endogeneity of plot size is very important in this analysis. When considering plot size as an exogenous explanatory variable, we find a monotonic positive relationship between the yield of maize and plot size, indicating that economies of scale are dominant throughout the plot size distribution. However, when we correct for the endogeneity of plot size, we find that the inverse relationship dominates the economies of scale in all plots up to 3 ha, which constitute 86% of our sample. These results suggest that market imperfections should be targeted by any policy aimed at increasing maize productivity in Zambia.     

Examining the relationship between farm size and productive efficiency: a Bayesian directional distance function approach

Achieving sustainable food security and increased farm income will depend on how efficient production systems are in converting available inputs to produce outputs. Using data from Malawi, we estimate a Bayesian directional technology distance function to examine the relationship between farm size and technical efficiency. Our results support the existence of an inverse relationship between farm size and productive efficiency, where small farms are more efficient than large farms. On average, farms exhibit inefficiency levels of 60%, suggesting that productivity could be improved substantially. Improving productive efficiency and food security will require farms to operate in ways where the size of cultivated area is matched by nonland production inputs such as labor, fertilizer, and improved seeds. The results highlight the need for policies that could incentivize farmers to adopt productivity‐enhancing technologies and, where possible, to allocate excess land to lease markets.     

Considering Technical and Allocative Efficiency in the Inverse Farm Size–Productivity Relationship

In the leading explanations for the oft‐observed inverse relationship (IR) between farm size and productivity in developing country agriculture, labour market imperfections have commonly occupied a central role. However, an emerging literature suggests that disparities in technical or allocative efficiency may be driving productivity differentials. Using nationally‐representative panel data from Nicaragua, we develop and employ a four‐stage empirical framework to simultaneously test the competing explanations for the IR. While efficiency differences exert a significant impact on all productivity indicators, their explanatory power is insufficient to rule out labour market imperfections as the driving force behind the relationship.     

Testing Household-Specific Explanations for the Inverse Productivity Relationship

The inverse relationship between land productivity and farm size is an old and puzzling empirical regularity. Most explanations for this relationship rely on market imperfections that jointly determine the farm size and the household's shadow price of some productive inputs. We use plot-level data from the ICRISAT/VLS to assess whether these household-specific theories can explain the puzzle. The data exhibit plots of different sizes being simultaneously cropped by the same household. The inverse relationship is shown to hold true with the same magnitude across the plots of each household, thus cross-household heterogeneity does not suffice to explain the puzzle.     

Structural transformation and smallholder agriculture: an information‐theoretic analysis of the Nicaraguan case

In light of continued debate regarding the capacity of small‐scale agricultural producers to compete amidst globalization and/or liberalization, we examine recent trends in the distribution and use of agricultural landholdings in developing nations via refined exploration of the Nicaraguan case. With nationally‐representative, Living Standards Measurement Survey‐type data for the years 1998, 2001, and 2005, we employ Markov chain methods within an information‐theoretic framework in an attempt to advance the analysis of structural transformation in developing countries beyond the examination of trends in mean farm sizes or Gini coefficients, approaches ill‐suited to the detection of the apparent complexities of structural change. Further, while Markov chain analysis has witnessed relatively widespread application in the investigation of structural transformation in developed nations, we offer a novel methodological extension by allowing for the simultaneous exploration of structural transformation across multiple dimensions–namely, structural change in both the distribution and use of agricultural landholdings—as well as the incorporation of microlevel determinants of farm size and land use change. The results of the inquiry, above all, suggest that Nicaragua's agricultural and livestock sector is characterized by a definitive persistence of smallholders. While a moderate tendency toward bifurcation in the distribution of landholdings would appear to obscure any immediate relationship between operational landholdings and land productivity, we contend that such trends are, in fact, consistent with the often observed inverse farm size‐productivity relationship.     

Land size and productivity in the livestock sector: evidence from pastoral areas in China

This article explores the relationship between land size and productivity in the livestock sector. Household panel data from pastoral areas in northwestern China were analysed. Results suggest an inverse relationship (IR) between land size and the number of livestock per ha. IR can be largely explained by labour input intensity, which is negatively correlated with land size. We find that household’s labour demand is not separable from household’s labour supply and households’ decisions to rent land and hire labour for grazing are significantly related to the labour–land endowment ratio. These findings are consistent with the Chayanovian explanation that labour input intensity varies with farm size due to unobserved interhousehold variation in shadow wage rates. In addition, participation in the labour market does not significantly influence the IR for the employer, while the practice of land renting reduces, but does not eliminate, the IR for the lease. These findings point towards the potential for using factor markets to optimise pasture‐based livestock production scale, and the need to promote the factor market development to achieve efficiency in resource use.     

Gender and agricultural productivity: implications of the Farm Input Subsidy Program in Malawi

Alleviating gender differences in agricultural productivity is vital for poverty reduction. While numerous studies suggest that gender differences in agricultural productivity are a result of female farmers having limited access to resources, few studies investigate the role of agricultural interventions in alleviating the constraints to input use and subsequently the gender gap in productivity. This study investigates whether there are gendered gains in agricultural productivity from participating in an input subsidy program and if these gains help reduce the gender gap. Using nationally representative data that is disaggregated at the plot level, this study analyzes the large‐scale voucher‐based Farm Input Subsidy Program in Malawi. Focusing on the total value of output per hectare, relationships are identified using weighted estimators, where the weights are constructed from propensity scores, and spatial fixed effects, to address the unobservable factors that may confound the relationship between program participation and productivity. The findings suggest that participation in the program improves agricultural productivity for both male and female farmers but it does not provide disproportionate help to female famers to overcome gender disparities in agricultural productivity. This suggests that female farmers face additional constraints to productivity apart from nonlabor input use.     

Capital Intensification,Productivity and Exchange – A Class‐Based Analysis of Agriculture in West Bengal in the Current Millennium

This paper deals with capitalist agricultural development in West Bengal, India. Based on a field study of two regions at different ends of the development spectrum, it shows the class‐specific nature of agrarian development. Farms based on hired labour adopt more capital‐intensive techniques, operate on a much larger scale and have higher yields in comparison to farms based on family labour, regardless of their size. Differentiation of the peasantry is intense where the adoption of capital‐intensive technology is high. The paper concludes that the arguments of A.V. Chayanov and A.K. Sen, which seek to explain the inverse relation between farm size and productivity in terms of the superior efficiency of farms based on family labour compared to capitalist farms, are not borne out by our findings. Moreover, in the advanced region of Bardhaman, farmers of all economic classes are found to be subject to a form of compulsive exchange or stressed commerce brought about by traders external to the region.     

Farm size and the determinants of productive efficiency in the Brazilian Center-West

This paper explores the determinants of technical efficiency, and the relationship between farm size and efficiency, in the Center-West of Brazil. This is the region where agricultural production and total factor productivity have grown the fastest since 1970. It is also a region characterised by unusually large farms. Technical efficiency is studied with Data Envelopment Analysis and county level data disaggregated by farm size and type of land tenure. The efficiency measure is regressed on a set of explanatory variables which includes farm size, type of land tenure, composition of output, access to institutions and indicators of technology and input usage. The relationship between farm size and efficiency is found to be non-linear, with efficiency first falling and then rising with size. Type of land tenure, access to institutions and markets, and modern inputs are found to be important determinants of the differences in efficiency across farms.     

Specialization,diversification, and productivity: a panel data analysis of rice farms in Korea

This article examines the microeconomics of productivity associated with specialization/diversification in production activities, with an application to Korean rice farms. Korean rice farms tend to be very small and highly specialized. Our analysis examines the productivity effects associated with both farm size and farm specialization/diversification in Korean agriculture. Relying on farm‐level panel data, the analysis studies farm productivity in a multi‐input multi‐output context, accounting not only for changes in inputs and technical change in rice production, but also for the role of diversification in the production of other crops in current and previous periods. We find positive but small productivity gains from farm diversification. These gains come mostly from complementarity effects across farm outputs, with minimal effect of scale economies. The positive complementarity effects work against nonconvexity effects, which provide strong productivity incentives for rice farms to specialize.     

Input Substitution,Productivity Performance and Farm Size

This paper develops a theoretical model to examine the relationship between the input elasticity of (technical) substitution and both farm total factor productivity and size. In the presence of ongoing technical change and its factor bias, the ‘income effect’ arising from farms' cost minimising behaviour enables them to increase productivity by saving inputs or, through the dual equivalent, enlarging farm size. As such, farms with higher elasticities of substitution tend to grow larger and become more productive, which provides a new mechanism through which farm heterogeneity in productivity growth can be examined. Empirical evidence from Australian broadacre agriculture supports this theory and points to important policy implications.     

In Defence of Neo-Classical Neo-Populism

This paper is a response to the discussion in the special issue of this Journal on Redistributive Land Reform Today (Vol. 4, Nos. 1 and 2). We begin by attempting to clarify the methodological debate, differentiating our approach, which our critics call neo-classical neo-populism, from mainstream neo-classical economics and historical materialism. We then distinguish between land tenure reforms and redistributive land reforms, and argue that it is the latter that really matter. Next, we address the issue of the inverse relationship between farm size and productivity. Fourth, we discuss cases in which systems of labour control are used to transform the peasantry into a landless rural proletariat and challenge the view that systems of labour control can usefully be reduced to a problem of transaction costs. We end with discussions of reform in the transition economies, China and Bangladesh, where we defend the view that it is the distribution of landownership rather than operational holdings that largely determines the extent of poverty.     

Farm productivity in Rwanda: effects of farm size,erosion, and soil conservation investments

This paper examines the effects of farm size, soil erosion, and soil conservation investments on land and labor productivity and allocative efficiency in Rwanda. There were several key results. First, there is a strong inverse relationship between farm size and land productivity, and the opposite for labor productivity. For smaller farms, there is evidence of allocative inefficiency in use of land and labor, probably due to factor market access constraints. Second, farms with greater investment in soil conservation have much better land productivity than average. Those with very eroded soils do much worse than average. Smaller farms are not more eroded than larger farms, but have twice the soil conservation investments. Third, land productivity benefits substantially from perennial cash crops, and the gains to shifting to cash crops are highest for those with low erosion and high use of fertilizer and organic matter. Program and policy effort to encourage and enable farmers to make soil conservation investments, to use fertilizer and organic matter, and to participate in cash cropping of perennials will have big payoffs in productivity. Land markets that allow smaller farmers to buy land could also increase aggregate productivity.     

Estimating Farm Productivity Differentials using Panel Data: The Hausman‐Taylor Approach

This paper investigates the relation between unobserved farm productivity and other production factors in a system of netput equations for specialised pig breeding farms in the Netherlands. In order to estimate the system, a Hausman‐Taylor panel data estimator is developed for a system of equations with unbalanced panel data. Tests on the correlation between model variables and farm‐effects are performed, yielding an insight into the sources of differences in total factor productivity and its components (e.g. managerial ability and scale economies). Results indicate that specialised pig breeding farms that are characterised by high total factor productivity have more buildings and machinery than farms with low total factor productivity.     

Exploring the relationship between information and communication technology (ICT) and productivity: Evidence from Australian farms

The relationship between information and communication technology (ICT) and farm productivity remains unresolved and often debated with limited evidence. While ICT is generally accepted by many to be a positive driver of productivity, others question it. Realistically, truth is likely somewhere in between. Certain ICT investments are likely to facilitate productivity improvement, whereas others may offer some other benefits such as improved safety or reduced emissions. It is also undeniable that some ICT investments may fail or offer little more than a temporary novelty. Using a sample of Australian farm-level data, analysis in this paper finds a positive relationship between ICT investment and productivity. Specifically, the use of precision agriculture and machinery infused with ICT (such as GPS autosteering tractors) is found to be statistically significant. Moreover, digital internet access or access to the National Broadband Network (NBN) is found to be beneficial—and conversely, farms that reported mobile and internet connectivity problems tended to achieve lower productivity.     

典型家庭农场组织化程度对生产效率的影响分析

现阶段中国农业生产仍属于高投入、低效率的粗放模式,粮食安全缺乏可持续性.研究不同规模下不同组织形式的家庭农场生产效率,有助于揭示在中国农业高质量发展阶段中通过转变农业经营组织形式提高粮食生产效率,保障国家粮食安全的新路径.本文利用湖北武汉、安徽郎溪等地家庭农场的问卷调查数据,采用三阶段DEA方法比较纯种植与种养结合两类...