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The Growth of Farms

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  • Upton, Martin
  • Haworth, Simon

Abstract

A cross-sectional time series of farm accounts for eighty-one farms and fourteen years was used to compare r elative growth rates of gross output, size in hectares, labor force, and machinery depreciation. Highly significant differences were obser ved between types of farming groups and between farms within groups. Growth rates were independent of size, but strongly associated with m easures of managerial ability and family size, and negatively with of f-farm income. It is concluded that the observed size distribution of farms is the outcome of differential growth in the past rather than of a static optimizing decision. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Upton, Martin & Haworth, Simon, 1987. "The Growth of Farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 14(4), pages 351-366.
    • Handle: RePEc:oup:erevae:v:14:y:1987:i:4:p:351-66
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    Cited by:

    1. Zoltan Bakucs & Stefan Bojnec & Imre Fertő & Laure Latruffe, 2013. "Farm size and growth in field crop and dairy farms in France, Hungary and Slovenia," Post-Print hal-01208897, HAL.
    2. Kostov, Philip & Patton, Myles & Moss, Joan E. & McErlean, Seamus, 2005. "Does Gibrat's Law Hold Amongst Dairy Farmers in Northern Ireland?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24775, European Association of Agricultural Economists.
    3. Villatoro, Mario & Langemeier, Michael, 2006. "Factors Impacting Farm Growth," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2006, pages 1-7.
    4. Ayal Kimhi & Nitzan Tzur-Ilan, 2021. "Structural Changes in Israeli Family Farms: Long-Run Trends in the Farm Size Distribution and the Role of Part-Time Farming," Agriculture, MDPI, vol. 11(6), pages 1-15, June.
    5. Toma, Luiza & Sutherland, Lee-Ann & Barnes, Andrew Peter & Renwick, Alan W. & McCrum, Gillian & Blackstock, Kirsty, 2011. "Policy Implications of a Behavioural Economics Analysis of Land Use Determinants in Rural Scotland," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116086, European Association of Agricultural Economists.
    6. Amer Ait Sidhoum & K Hervé Dakpo & Laure Latruffe, 2022. "Trade-offs between economic, environmental and social sustainability on farms using a latent class frontier efficiency model: Evidence for Spanish crop farms," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-17, January.
    7. Weiss, Christoph R. & Thiele, Holger D., 2002. "Diversifikation und Wachstum landwirtschaftlicher Unternehmen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(03), pages 1-8.
    8. Kousar, Rakhshanda & Abdulai, Awudu, 2014. "Impact of non-farm work and land tenancy contracts on soil conservation measures," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170522, Agricultural Economics Society.
    9. Lefebvre, Marianne & Gomez y Paloma, Sergio & Viaggi, Davide, 2014. "EU farmers' intentions to invest in 2014-2020: complementarity between asset classes," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182737, European Association of Agricultural Economists.
    10. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," Discussion Papers 99217, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    11. Brenes Muñoz, Thelma & Lakner, Sebastian & Brümmer, Bernhard, 2012. "Economic growth of farms: An empirical analysis on organic farming," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126756, International Association of Agricultural Economists.
    12. Margarian, Anne, 2007. "Mehr-Ebenen-Modelle in der Analyse agrarstruktureller Entwicklungen – Methodik und Implikationen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(08), pages 1-14.
    13. Fertő, Imre & Bakucs, Lajos Zoltán, 2008. "Érvényes-e a Gibrat-törvény a magyar mezőgazdaságban? [Is Gibrat s law valid for Hungarian agriculture?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 25-38.
    14. Marie-Luce Ghib & Pierre Wavresky & Krystyna Larkham & Lucian Luca, 2010. "Les petites exploitations roumaines connaissent elles une évolution sous contraintes de localisation?," INRA UMR CESAER Working Papers 2010/4, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
    15. Conor M. O'Toole & Carol Newman & Thia Hennessy, 2011. "The role of investment, fundamental Q and financing frictions in agricultural investment decisions: an analysis pre and post financial crisis," Working Papers 1101, Rural Economy and Development Programme,Teagasc.
    16. Sherzod B. Akhundjanov & Tatiana Drugova, 2022. "On the growth process of US agricultural land," Empirical Economics, Springer, vol. 63(3), pages 1727-1740, September.
    17. Fertő, Imre, 2002. "A mezőgazdasági termelés szerkezetének változásai a fejlett országokban, II. Az üzemnagyság és a mérethozadék problémája a mezőgazdaságban [Changes in the structure of agricultural production in th," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 760-773.

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