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The impact of land fragmentation on milk production

Author

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  • del Corral, J.
  • Pérez, J.A.
  • Roibás, D.

Abstract

The effect of land fragmentation on agriculture has worried policy makers for a long time as its effect is expected to be negative. Land consolidation policies are frequently implemented in order to soften the land fragmentation degree. However, there is, to the authors’ knowledge, no study in the dairy sector that empirically analyzes the role of land fragmentation on farms’ productivity and profits. This study contributes to filling the gap in the literature by evaluating the effect of land fragmentation on milk production. To accomplish this, a stochastic frontier production function has been estimated. This empirical analysis uses information corresponding to a sample of Spanish dairy farms located in a region where dairy production is by far the most important agricultural product and land is highly fragmented. As policy makers in the region assume that land fragmentation has a negative influence on agricultural production and, particularly, in dairy production, a land consolidation process is being developed. Thereafter, a simulation analysis is carried out to evaluate the increase in profits that could be obtained by reducing land fragmentation. The results show that dairy farms could increase their profits in a range between 9.4% and 14% by reducing the land fragmentation degree in a proportion similar to the one attained by the land consolidation process that is being carried out in the region.

Suggested Citation

  • del Corral, J. & Pérez, J.A. & Roibás, D., 2010. "The impact of land fragmentation on milk production," Efficiency Series Papers 2010/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
  • Handle: RePEc:oeg:wpaper:2010/02
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    File URL: https://www.unioviedo.es/oeg/ESP/esp_2010_02.pdf
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    References listed on IDEAS

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    1. repec:gam:jlands:v:7:y:2018:i:2:p:58-:d:144297 is not listed on IDEAS
    2. Latruffe, Laure & Piet, Laurent, 2013. "Does land fragmentation affect farm performance? A case study from Brittany, France," Working Papers 207854, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. Latruffe, Laure & Piet, Laurent, 2013. "Does land fragmentation affect farm performance? A case study from Brittany," Factor Markets Working Papers 151, Centre for European Policy Studies.
    4. Finneran, E. & Crosson, p., 2013. "Effects of scale, intensity and farm structure on the income efficiency of Irish beef farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(4), pages 1-12, July.
    5. repec:ags:gewipr:261089 is not listed on IDEAS
    6. Singh, Shiv Raj & Datta, K.K., 2013. "Future of Smallholders in the Indian Dairy Sector – Some Anecdotal Evidence," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(2), pages 1-13.
    7. Orea, Luis & Pérez, Jose A. & Roibás, David, 2013. "Evaluating the double effect of land fragmentation on technology choice and dairy farm productivity: A latent class model approach," Efficiency Series Papers 2013/08, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    8. Niskanen, Olli & Heikkilä, Anna-Maija, 2015. "The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(1), pages 65-77, April.
    9. Sauer, Johannes & Davidova, Sophia & Gorton, Matthew, 2012. "Land fragmentation, market integration and farm efficiency: empirical evidence from Kosovo," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134968, Agricultural Economics Society.
    10. Sauer, J. & Davidova, S. & Gorton, M., 2013. "Land Fragmentation and Market Integration- Heterogenous Technologies in Kosovo," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.
    11. Sauer, Johannes & Davidova, Sophia & Gorton, Matthew, 2012. "Heterogeneous Technologies as an Answer to Market and Price Risk: The Case of Kosovo," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122509, European Association of Agricultural Economists.
    12. Roibás, David & Wall, Alan & Pérez, José A., 2014. "The influence of meteorological conditions on dairy production," Efficiency Series Papers 2014/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    13. repec:aka:aoecon:v:67:y:2017:i:4:p:643-672 is not listed on IDEAS
    14. Alvarez, Antonio & Arias, Carlos, 2015. "Effects of switching between production systems in dairy farming," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 4(1), pages 1-16, April.

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