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Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship, Volume 1
Author:Deininger, Klaus; Nizalov, Denys; Singh, Sudhir K; Country:Ukraine;
Date Stored:2013/07/24Document Date:2013/07/01
Document Type:Policy Research Working PaperSubTopics:Political Economy; Economic Theory & Research; Crops and Crop Management Systems; Labor Policies; Rural Development Knowledge & Information Systems
Language:EnglishMajor Sector:Public Administration, Law, and Justice; Agriculture, fishing, and forestry
Rel. Proj ID:1W-Large Scale Farmland Acquisition And Use -- -- P122628;Region:Europe and Central Asia
Report Number:WPS6544Sub Sectors:General agriculture, fishing and forestry sector; Public administration- Agriculture, fishing and forestry
Collection Title:Policy Research working paper ; no. WPS 6544TF No/Name:TF097626-From #land grab# to development opportunity?
Volume No:1  

Summary: 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.

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