The Farm Size -Productivity Debate Revisited

Abstract

The relationship between land size and productivity is a hotly debated topic in agricultural economics. Some argue that there is a Direct Relationship (DR) between land size and productivity, some argue for an Inverse Relationship (IR) while some researchers believe that there is no relationship as such, or is different for different land size ranges. Studying the IR-DR debate becomes important if policy makers want to improve agricultural productivity through land reforms. The area under cultivation is constrained by an increasing demand for land needed for industrialization, urbanization and infrastructure. Thus a higher agricultural production would require a higher agricultural productivity. If the IR does indeed exist , then land ceilings, redistribution after breaking up Large Farms (LFs) into Small Farms (SFs) and various other policies which support smallholders will gain backing on efficiency and growth reasons , besides equality concerns.