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The Growing Heterogeneity in the Farm Sector and Its Implications

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  • Alfons Weersink

Abstract

The farm sector has moved from one that was very homogeneous to one with significant differences in size and/or orientation. The decline in the number of “average†sized†farm and the growth in the number of large farms are due primarily to technological innovations that push operations producing commodities to grow as a means of capturing economies of size. The increase in the relative number of small farms is also due partially to technical advances that allow for the production of food goods with the desired quality attributes to be delivered to the appropriate market. This market is continually being differentiated due to demographic and income shifts. The growing heterogeneity in farm structure complicates the assessment and design of farm policy. The social policy objective of improving the livelihood of farmers and their families could be achieved through farm support and extension programs when the sector was homogeneous. The policy objective has shifted toward improving the competitiveness of the sector, but for which of its components? The trend toward greater heterogeneity is likely to continue and thus so will the internal and external support for any policies targeted toward the farm sector.L'on trouve maintenant dans le secteur agricole, anciennement homogène, des différences de tailles et d'orientation considérables. Le déclin du nombre d'exploitations agricoles de tailles moyennes ainsi que la croissance des grandes exploitations surviennent principalement grâce aux innovations technologiques qui poussent la croissance des fermes de productions comme moyen de profiter d′économies de volume. Cette augmentation au nombre relatif de petites fermes est aussi partiellement causée par les avancées technologiques permettant la production de denrées alimentaires comportant les attributs désirés de qualité pouvant être livrés aux marchés appropriés, ces derniers étant continuellement différenciés suivant des variations démographiques et de revenus. L'hétérogénéité croissante de la structure agricole complique l′évaluation et la conception de politiques agricoles. Lorsque le secteur était homogène, la politique sociale dont l'objectif est l'amélioration des moyens de subsistance des fermiers et de leurs familles pouvait être atteinte à l'aide de soutien et de programmes d′éducation permanente. L'objectif politique s'est transformé pour viser l'amélioration de la compétitivité du secteur mais pour lesquelles de ses composantes ? La tendance vers une plus grande hétérogénéité risque de se poursuivre tout comme l'appui à l'interne et à l'externe des politiques visant le secteur agricole.

Suggested Citation

  • Alfons Weersink, 2018. "The Growing Heterogeneity in the Farm Sector and Its Implications," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(1), pages 27-41, March.
  • Handle: RePEc:bla:canjag:v:66:y:2018:i:1:p:27-41
    DOI: 10.1111/cjag.12163
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    References listed on IDEAS

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    1. Kislev, Yoav & Peterson, Willis, 1982. "Prices, Technology, and Farm Size," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 578-595, June.
    2. Daniel A. Sumner, 2014. "American Farms Keep Growing: Size, Productivity, and Policy," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 147-166, Winter.
    3. Kenneth Poon & Alfons Weersink, 2014. "Growing Forward with Agricultural Policy: Strengths and Weaknesses of Canada's Agricultural Data Sets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 191-218, June.
    4. Ellen Goddard & Alfons Weersink & Kevin Chen & Calum G. Turvey, 1993. "Economics of Structural Change in Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(4), pages 475-489, December.
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    2. Zheng, Yanan & Goddard, Ellen W. & Qiu, Feng, 2018. "Exploring the Effect of Disease Outbreaks on Farm Structure Change: A Dynamic Analysis for Canadian Pig Industry," 2018 Annual Meeting, August 5-7, Washington, D.C. 273801, Agricultural and Applied Economics Association.
    3. André Magnan & Melissa Davidson & Annette Aurélie Desmarais, 2023. "‘They call it progress, but we don’t see it as progress’: farm consolidation and land concentration in Saskatchewan, Canada," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(1), pages 277-290, March.
    4. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    5. Sarker, Rakhal, 2021. "Farm Safety Net Payments and Risk Balancing in Ontario Beef Sector," 2021 Conference, August 17-31, 2021, Virtual 315321, International Association of Agricultural Economists.
    6. Alfons Weersink & Murray Fulton, 2020. "Limits to Profit Maximization as a Guide to Behavior Change," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 67-79, March.
    7. Kabirigi, Michel & Sekabira, Haruna & Sun, Zhanli & Hermans, Frans, 2023. "The use of mobile phones and the heterogeneity of banana farmers in Rwanda," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(6), pages 5315-5335.
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