Farm Size And Productivity Case Study

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“Political Economy of Farm size and Productivity” Introduction: The farm size and productivity in the developing countries are used to analyze the agriculture structure. One critique levelled at literature on the productivity- farm size relationship is that the measure used and land productivity is inappropriate, that is people had a perception that big or large farms size holders had higher production than those who hold smaller farms. This perception started changing when Sen (1962, 1966) observed the inverse relationship between farm size and their output, that large farms are not that productive than the small farms. This relationship explained by the relative advantage of involving the family members as labours in the small farms that reduce the monitoring and supervision costs of hired labour. Since then many other scholars conducted study on agrarian countries to test the Sen’s finding and debate raged over- differential factor prices, differential land use, qualitative factor differences, and class-based differences among farms of different sizes or other factors. According, Feder (1985) small farmers have high labour and achieve high yield. But inverse relationship failed in rural market for credit, land and labour and there is difference between the labour endowments between the small and large farms. In the developing countries the efficiency of small farms than large farms started changing…show more content…
The case study describes the “farm size and the intensity of the land used in the state of Gujarat” by small farmers based on the regional variations in fertility and labour supply. They rationalize the regional variation in underlying land fertility by simple model that generalizes the Malthusian prediction – “those farms will be on average smaller and more productive in fertile

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