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Farms, Farm Households, and Productivity of Resource Use in Agriculture


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  • Schmitt, Gunther
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    Farms are seen and analyzed by contemporary agricultural economics as firms producing farm products only. Although most farms in western countries are managed by farm families, the economics and economic implications of family farms as the dominant institution in agriculture are neglected almost totally. In the article, first, a simple model of family farms is developed where resources available are supplied by the farm household whereas the farm is demanding such resouces, however, in competition with efficient resource use outside that farm. Modifications of the micro-theory of the family farms due to imperfect instead of perfect labor and land markets are presented as well. Next, implications of the farm as a correlate of the farm household for income and productivity of resource use in agriculture are discussed. Finally, further consequences with respect to agricultural policy are mentioned. Copyright 1989 by Oxford University Press.

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    Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

    Volume (Year): 16 (1989)
    Issue (Month): 2 ()
    Pages: 257-84

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    Handle: RePEc:oup:erevae:v:16:y:1989:i:2:p:257-84

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    Cited by:
    1. Marcos Gallacher, 2010. "The changing structure of production: Argentine agriculture 1988-2002," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 3-28, January-D.
    2. Andersson, Hans & Ramaswami, Bharat & Moss, Charles B. & Erickson, Kenneth W. & Hallahan, Charles B. & Nehring, Richard F., 2005. "Off-farm Income and Risky Investments: What Happens to Farm and Nonfarm Assets?," 2005 Annual meeting, July 24-27, Providence, RI 19480, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Schrader, Jörg-Volker, 1991. "Anpassungsprozesse in der ostdeutschen Landwirtschaft: Analyse und Bewertung," Kiel Discussion Papers 171/172, Kiel Institute for the World Economy (IfW).
    4. Hockmann, Heinrich & Pieniadz, Agata, 2009. "Explaining differences in farms efficiencies in Polish agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 51051, International Association of Agricultural Economists.
    5. Hockmann, Heinrich & Pieniadz, Agata, 2008. "Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44278, European Association of Agricultural Economists.
    6. Thomson, Kenneth J. & Davidova, Sophia, 2014. "Economic Aspects of Family Farming in the European Context," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170354, Agricultural Economics Society.


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