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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), December.
  • Handle: RePEc:ags:aareaj:162026
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Laure Latruffe & Laurent Piet, 2013. "Does land fragmentation affect farm performance? A case study from Brittany," Working Papers hal-01208908, HAL.
    7. 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).
    8. 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.
    9. 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).
    10. 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.
    11. 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.
    12. 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.

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