Duality Of Farm Structure In Transition Agriculture: The Case Of Moldova

The duality of farm structure in Moldova is manifested by the existence of a relatively small number of large corporate farms at one extreme and a very large number of small and very small family farms at the other. “Medium-sized” family farms, the backbone of any market agriculture, virtually do not exist in Moldova. Moldovan agriculture is characterized by a much greater concentration of land in large farms than agriculture in market economies. The small individual farms on the whole are more productive and more efficient than the large corporate farms. They produce higher incomes for rural families than corporate farms. The main conclusion of the paper is that land should be allowed to flow from large corporate farms to small family farms through the medium of land markets until an equilibrium is established between the two farm sectors at a new level closer to that observed in market economies.