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Farm Size, Technology Adoption and Agricultural Trade Reform: Evidence from Canada

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  • Brown, Mark
  • Ferguson, Shon
  • Viju, Crina

Abstract

Using detailed census data covering over 30,000 farms in Alberta, Saskatchewan and Manitoba, Canada, we document the vast and increasing farm size heterogeneity, and analyse the role of farm size in adapting to the removal of an export subsidy in 1995. Consistent with the Alchian‐Allen hypothesis, the increase in per‐unit trade costs due to the reform was associated with farms of all sizes shifting their production of crops from low value wheat to higher value canola. We find that switching to new labour‐saving tillage technologies and away from summerfallow in response to the large negative shock to grain prices caused by the reform varied across the farm size distribution. We develop a theory of heterogenous farms and technology adoption that can explain our findings.
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  • Brown, Mark & Ferguson, Shon & Viju, Crina, 2018. "Farm Size, Technology Adoption and Agricultural Trade Reform: Evidence from Canada," 2018 Annual Meeting, August 5-7, Washington, D.C. 274381, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea18:274381
    DOI: 10.22004/ag.econ.274381
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    Cited by:

    1. Xi Yu & Xiyang Yin & Yuying Liu & Dongmei Li, 2021. "Do Agricultural Machinery Services Facilitate Land Transfer? Evidence from Rice Farmers in Sichuan Province, China," Land, MDPI, vol. 10(5), pages 1-14, April.
    2. Huw Lloyd-Ellis & Ardyn Nordstrom, 2021. "Trade, poverty and food security: A survey of recent research and its implications for East Africa," Working Paper 1460, Economics Department, Queen's University.

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    More about this item

    Keywords

    Productivity Analysis and Emerging Technologies; International Trade; Food and Agricultural Policy Analysis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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