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Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship

Author

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  • Deininger, Klaus
  • Nizalov, Denys
  • Singh, Sudhir K

Abstract

With farms cultivating tens or hundreds of thousands of hectares, Ukraine is often used to demonstrate the existence of economies of scale in modern grain production. Panel data analysis for all the country's farms with more than 200 hectares in 2001-2011 suggests that higher yields and profits are due to unobserved factors at rayon (district) and farm level rather than economies of scale. Productivity growth was driven not by farm expansion but by exit of unproductive and entry of more efficient farms. Higher initial shares of area under farms with more than 3,000 or 5,000 hectares at the rayon level significantly reduce subsequent exit, suggesting that land concentration reduces productivity growth. The paper draws implications for global evolution of farm structures.

Suggested Citation

  • Deininger, Klaus & Nizalov, Denys & Singh, Sudhir K, 2013. "Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship," Policy Research Working Paper Series 6544, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6544
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    References listed on IDEAS

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    Cited by:

    1. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
    2. Klaus Deininger & Songqing Jin & Yanyan Liu & Sudhir K Singh, 2016. "Can Labor Market Imperfections Explain Changes in the Inverse Farm Size–Productivity Relationship? Longitudinal Evidence from Rural India," Working Papers id:10987, eSocialSciences.
    3. Deininger,Klaus W. & Jin,Songqing & Liu,Yanyan & Singh,Sudhir K., 2016. "Can labor market imperfections explain changes in the inverse farm size?productivity relationship ? longitudinal evidence from rural India," Policy Research Working Paper Series 7783, The World Bank.
    4. repec:uwp:landec:v:94:y:2018:i:2:p:239-258 is not listed on IDEAS
    5. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.

    More about this item

    Keywords

    Economic Theory&Research; Rural Development Knowledge&Information Systems; Crops and Crop Management Systems; Political Economy; Labor Policies;

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