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The Farm Size-Efficiency Relationship In South African Commercial Agriculture

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  • van Zyl, Johan

Abstract

This paper briefly discusses the sources of economies of scale, with some international evidence. It provides a picture of the structure of South African agriculture, detailing distributions of Jann size as well as some results of previous studies analysing Jann size efficiencies. An analysis of Jann size-efficiency relationship in commercial fanning is done by utilising representative Jann level survey data on the six major grain producing areas and an irrigation area over the period 1975-1990. The role of policy in explaining these relationships is discussed, while some conclusions are also drawn. The findings have specific implications for land re/om,. The inverse Jam, size-efficiency relationship, which is also present in South African agriculture despite a history of policies favouring relatively large mechanised fam,s, implies that significant efficiency gains can be made if Jam, sizes in the commercial sector becomes smaller. An important element in such a process would be the removal of all policies and distortions favouring larger farms relative to smaller farms.

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  • van Zyl, Johan, 1995. "The Farm Size-Efficiency Relationship In South African Commercial Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 34(4), December.
    • Handle: RePEc:ags:agreko:267829
    DOI: 10.22004/ag.econ.267829
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    References listed on IDEAS

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    1. Sartorius von Bach, H. J. & Koch, B. H. & van Zyl, J., 1992. "Relating Perceptions And Associated Economic Criteria To Economic Survival In Commercial Dryland Farming In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(4), December.
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    4. Johnson, Nancy L. & Ruttan, Vernon W., 1994. "Why are farms so small?," World Development, Elsevier, vol. 22(5), pages 691-706, May.
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    9. Kislev, Yoav & Peterson, Willis L., 1991. "Economies Of Scale In Agriculture: A Reexamination Of The Evidence," Staff Papers 13652, University of Minnesota, Department of Applied Economics.
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    1. Ajuruchukwu Obi & Balogun Taofeek Ayodeji, 2020. "Determinants of Economic Farm-Size–Efficiency Relationship in Smallholder Maize Farms in the Eastern Cape Province of South Africa," Agriculture, MDPI, vol. 10(4), pages 1-18, April.

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