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The Farm Size-Efficiency Relationship In South African Commercial Agriculture

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  • van Zyl, Johan

Abstract

This paper briefly discusses the sources of economies of scale, with some international evidence. It provides a picture of the structure of South African agriculture, detailing distributions of Jann size as well as some results of previous studies analysing Jann size efficiencies. An analysis of Jann size-efficiency relationship in commercial fanning is done by utilising representative Jann level survey data on the six major grain producing areas and an irrigation area over the period 1975-1990. The role of policy in explaining these relationships is discussed, while some conclusions are also drawn. The findings have specific implications for land re/om,. The inverse Jam, size-efficiency relationship, which is also present in South African agriculture despite a history of policies favouring relatively large mechanised fam,s, implies that significant efficiency gains can be made if Jam, sizes in the commercial sector becomes smaller. An important element in such a process would be the removal of all policies and distortions favouring larger farms relative to smaller farms.

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  • van Zyl, Johan, 1995. "The Farm Size-Efficiency Relationship In South African Commercial Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 34(4), December.
    • Handle: RePEc:ags:agreko:267829
    DOI: 10.22004/ag.econ.267829
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    References listed on IDEAS

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    1. van Zyl, Johan & Binswanger, Hans & Thirtle, Colin, 1995. "The relationship between farm size and efficiency in South African agriculture," Policy Research Working Paper Series 1548, The World Bank.
    2. J. Van Zyl & N. Vink & T.I. Fényes, 1987. "Labour‐Related Structural Trends in South African Maize Production," Agricultural Economics, International Association of Agricultural Economists, vol. 1(3), pages 241-258, October.
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    4. Michael R. Carter, 1994. "Sequencing Capital and Land Market Reforms for Broadly Based Growth," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 379, Wisconsin-Madison Agricultural and Applied Economics Department.
    5. Johnson, Nancy L. & Ruttan, Vernon W., 1994. "Why are farms so small?," World Development, Elsevier, vol. 22(5), pages 691-706, May.
    6. Sartorius von Bach, H. J. & Koch, B. H. & van Zyl, J., 1992. "Relating Perceptions And Associated Economic Criteria To Economic Survival In Commercial Dryland Farming In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(4), December.
    7. John M. Brewster, 1950. "The Machine Process in Agriculture and Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 32(1), pages 69-81.
    8. A. Allan Schmid, 1992. "Legal Foundations of the Market: Implications for the Formerly Socialist Countries of Eastern Europe and Africa," Journal of Economic Issues, Taylor & Francis Journals, vol. 26(3), pages 707-732, September.
    9. Carter, Michael R., 1994. "Sequencing Capital And Land Market Reforms For Broadly Based Growth," Staff Papers 12689, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    10. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
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    12. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772, Elsevier.
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    Cited by:

    1. Ajuruchukwu Obi & Balogun Taofeek Ayodeji, 2020. "Determinants of Economic Farm-Size–Efficiency Relationship in Smallholder Maize Farms in the Eastern Cape Province of South Africa," Agriculture, MDPI, vol. 10(4), pages 1-18, April.

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