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The Rationality of Farm Size Growth: An Example from 'White' South Africa

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  • Moll, Peter G

Abstract

The author examines whether farmers respond reasonably efficiently to market signals, or whether their decision-making about farm expansion is based upon nonmarket principles. Four approaches to this problem are outlined. The first makes inferences from aggregate income data. The second estimates earnings functions. The third tests the hypothesis of economies of scale. The fourth examines farmers' long-term plans econometrically. These methods are applied in the context of commercial agriculture in South Africa. It appears that expansion is undertaken for rational economic reasons. It is concluded that the costs of interventions to alter farm sizes may be considerable. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Moll, Peter G, 1989. "The Rationality of Farm Size Growth: An Example from 'White' South Africa," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(3), pages 345-357.
    • Handle: RePEc:oup:erevae:v:16:y:1989:i:3:p:345-57
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    Cited by:

    1. Kassier, W E & Groenewald, J A, 1990. "The Agricultural Economy of South Africa," 1990 Symposium, Agricultural Restructuring in Southern Africa, July 24-27, 1990, Swakopmund, Namibia 183486, International Association of Agricultural Economists.
    2. Klerk, M J de, 1990. "Issues and Options for Land Reform in South Africa," 1990 Symposium, Agricultural Restructuring in Southern Africa, July 24-27, 1990, Swakopmund, Namibia 183527, International Association of Agricultural Economists.

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