Can Small Still Be Beautiful in Farming?

Can Small Still Be Beautiful in Farming?


Smallholders can be quite productive, and some evidence indicates that they are proportionately more productive than larger farmers. With the exception of plantation farming, an inverse relationship between plot size and productivity per hectare has been observed, and has found support in some empirical evidence.

Recent research from Uganda has demonstrated that smallholding farmers typically over-report land holdings — discrediting longstanding claims that this inverse relationship is merely a function of under-reported plot sizes and inflated yield data. This same study found that average acre yields of medium farmers were 270 percent more productive than those of large farmers, while average acre yields of small farmers were over 300 percent more productive. These dis-economies of scale may possibly be explained through their labour structures.

Small family farms can be maintained by a self-motivated workforce with expertise in local ecology and a labour supply that is easily adjusted for seasonal variability. However, this may not apply for all crops and environments. For example, evidence from Brazil and Argentina indicate that, at least for grains, larger farms tend to be highly productive and cost efficient. There are crops that seem better suited for smallholder farmers, such as coffee, cocoa, and vegetables, amongst others, where yields and productivity amongst these smallholders can be very high. These are more labour intensive crops, compared to grains that rely on scale and mechanisation.


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