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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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    7. 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.
    8. van Schalkwyk, H. D. & van Zyl, J. & Sartorius von Bach, H. J., 1993. "Management And Returns To Farm Size: Results Of A Case Study Using Parametric And Non-Parametric Methodology To Measure Scale Efficiencies," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 32(4), December.
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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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