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The costs and benefits of land fragmentation of rice farms in Japan

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  • Kawasaki, Kentaro

Abstract

Land fragmentation, in which a farm operates multiple, separate plots of land, is a common phenomenon in Japan and many other countries. Usually, land fragmentation is regarded as a harmful phenomenon as it increases production costs and reduces the advantages of scale economies. However, it is also known that fragmentation may have beneficial effects in reducing risk through spatial dispersion of plots. Thus, land fragmentation has both costs and benefits, and whether it is beneficial or harmful is determined by the magnitude of these costs and benefits. This article investigates the costs and benefits of land fragmentation empirically using panel data from Japanese rice farms. The empirical results reveal that fragmentation increases production costs and offsets economies of size, and these impacts strengthen as farm size increases. Moreover, although fragmentation does reduce production risk, its monetary value is far below the cost of land fragmentation. From these findings, we conclude that land fragmentation is an impediment to efficient rice production in Japan.

Suggested Citation

  • Kawasaki, Kentaro, 2010. "The costs and benefits of land fragmentation of rice farms in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-18.
  • Handle: RePEc:ags:aareaj:162026
    DOI: 10.22004/ag.econ.162026
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    File URL: http://ageconsearch.umn.edu/record/162026/files/j.1467-8489.2010.00509.x.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. OGAWA Kazuo, 2017. "Inefficiency in Rice Production and Land Use: A panel study of Japanese rice farmers," Discussion papers 17020, Research Institute of Economy, Trade and Industry (RIETI).
    2. Rao, Xudong, 2014. "Land Fragmentation with Double Bonuses -- The Case of Tanzanian Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169436, Agricultural and Applied Economics Association.
    3. Klaus Deininger & Daniel Monchuk & Hari K Nagarajan & Sudhir K Singh, 2017. "Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 53(1), pages 82-98, January.
    4. repec:bla:agecon:v:50:y:2019:i:1:p:39-49 is not listed on IDEAS
    5. repec:ags:stagec:280978 is not listed on IDEAS
    6. Takayama, T. & Hashizume, N. & Nakatani, T., 2018. "The Impact of Direct Payments in Less Favored Areas on Agricultural Land Use and Farm Numbers: An Instrumental Variable Approach with Panel Data," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277294, International Association of Agricultural Economists.
    7. Ogawa, Kazuo, 2017. "Inefficiency in Rice Production and Land Use: A Panel Study of Japanese Rice Farmers," HIT-REFINED Working Paper Series 68, Institute of Economic Research, Hitotsubashi University.
    8. Laure Latruffe & Laurent Piet, 2013. "Does land fragmentation affect farm performance? A case study from Brittany," Working Papers hal-01208908, HAL.
    9. Arimoto, Yutaka, 2011. "The impact of farmland readjustment and consolidation on structural adjustment: The case of Niigata, Japan," CEI Working Paper Series 2011-3, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    10. repec:eee:agisys:v:161:y:2018:i:c:p:81-88 is not listed on IDEAS
    11. repec:ags:naaenj:280325 is not listed on IDEAS
    12. Deininger, Klaus & Jin, Songqing & Liu, Yanyan & Singh, Sudhir, 2015. "Labor Market Performance and the Farm Size-Productivity Relationship in Rural India," 2015 Conference, August 9-14, 2015, Milan, Italy 212720, International Association of Agricultural Economists.
    13. Orea, Luis & Pérez, Jose A. & Roibás, David, 2013. "Evaluating the double effect of land fragmentation on technology choice and dairy farm productivity: A latent class model approach," Efficiency Series Papers 2013/08, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    14. Ciaian, Pavel & Rajcaniova, Miroslava & Guri, Fatmir & Zhllima, Edvin & Shahu, Edmira, 2018. "The impact of crop rotation and land fragmentation on farm productivity in Albania," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(3), December.
    15. repec:bla:asiaec:v:31:y:2017:i:4:p:331-353 is not listed on IDEAS
    16. Ali,Daniel Ayalew & Deininger,Klaus W. & Ronchi,Loraine, 2015. "Costs and benefits of land fragmentation : evidence from Rwanda," Policy Research Working Paper Series 7290, The World Bank.
    17. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66, 11-2019.
    18. repec:gam:jsusta:v:10:y:2018:i:7:p:2490-:d:158270 is not listed on IDEAS
    19. repec:gam:jsusta:v:10:y:2018:i:7:p:2120-:d:153708 is not listed on IDEAS
    20. Takayama, Taisuke & Nakatani, Tomoaki, 2015. "The Impact of Participatory Projects on Social Capital: Evidence from Farmland Consolidation Projects in Japan," 2015 Conference, August 9-14, 2015, Milan, Italy 211938, International Association of Agricultural Economists.
    21. Yagi, Hironori, 2012. "Farm size and Distance-to-Field in Scattered Rice Field Areas:with Integration of Plot and Farm Data," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125390, International Association of Agricultural Economists.
    22. Laure Latruffe & Laurent Piet, 2013. "Does land fragmentation affect farm performance? A case study from Brittany, France," Working Papers SMART - LERECO 13-04, INRA UMR SMART-LERECO.

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