Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
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World Bank, Washington, D.C.
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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.
Palabras clave
AGRIBUSINESS, AGRICULTURAL COMMODITIES, AGRICULTURAL DEVELOPMENT, AGRICULTURAL ECONOMICS, AGRICULTURAL LAND, AGRICULTURAL MARKETS, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURE, ANIMALS, ATTRITION, BARLEY, BARRIERS TO ENTRY, CAPITAL COSTS, COLLUSION, COMMODITY, COMMUNISM, COMPARATIVE ADVANTAGE, COMPETITIVE MARKETS, CONSTANT RETURNS TO SCALE, COOPERATIVES, CORN, CROP, CROP PRODUCTION, DEMAND FOR FOOD, DEMOCRACY, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DRIVERS, DUAL ECONOMY, ECONOMETRICS, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMIC OUTCOMES, ECONOMIC PERFORMANCE, ECONOMICS, ECONOMIES OF SCALE, EMPLOYMENT, EQUIPMENT, EXPORT GROWTH, FACTOR MARKETS, FACTORS OF PRODUCTION, FAO, FARM, FARM GROWTH, FARM STRUCTURES, FARMERS, FARMING, FARMS, FERTILIZER, FINANCIAL SECTOR, FIXED COSTS, FOOD PRICES, FOOD SECURITY, FRUITS, GRAIN, GRAIN PRODUCTION, GRAINS, HUMAN CAPITAL, INCOME, INCOME DISTRIBUTION, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INCUMBENT, INSURANCE, INTEGRATION, LABOR INTENSIVE TECHNOLOGIES, LABOR MARKET, LABOR MARKETS, LAND DISTRIBUTION, LAND REFORM, LIVESTOCK, MACROECONOMICS, MAIZE, MANAGERIAL EFFICIENCY, MARGINAL PRODUCT, MARGINAL VALUE, NEGATIVE EXTERNALITIES, OILSEED PRICES, OILSEEDS, OLIGARCHY, OPPORTUNITY COST, PATTERNS OF SETTLEMENT, PLANTATIONS, POLITICAL ECONOMY, POLITICAL PARTICIPATION, POULTRY, PRICE CONTROLS, PRODUCTION FUNCTION, PRODUCTION PROCESS, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC GOODS, R&D, REGIONAL PRODUCTIVITY, RENT SEEKING, RENTS, ROOT CROPS, RURAL DEVELOPMENT, SECURE PROPERTY RIGHTS, SEED, SMALL FARMERS, SMALL PRODUCERS, SMALLHOLDER AGRICULTURE, SOCIAL COST, SOCIAL STRUCTURE, SOIL FERTILITY, SOIL QUALITY, SOILS, SOYBEAN, STRUCTURAL CHANGE, SUGAR, SUGAR BEET, SUNFLOWER, SURPLUS LABOR, TAX, TILLAGE, TOTAL FACTOR PRODUCTIVITY, TRADE POLICY, UNSKILLED LABOR, VALUE OF OUTPUT, VEGETABLES, WAGES, WEALTH, WHEAT, YIELDS