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Farms, Farm Households, and Productivity of Resource Use in Agriculture

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  • Schmitt, Gunther

Abstract

Farms are seen and analyzed by contemporary agricultural economics as firms producing farm products only. Although most farms in western countries are managed by farm families, the economics and economic implications of family farms as the dominant institution in agriculture are neglected almost totally. In the article, first, a simple model of family farms is developed where resources available are supplied by the farm household whereas the farm is demanding such resouces, however, in competition with efficient resource use outside that farm. Modifications of the micro-theory of the family farms due to imperfect instead of perfect labor and land markets are presented as well. Next, implications of the farm as a correlate of the farm household for income and productivity of resource use in agriculture are discussed. Finally, further consequences with respect to agricultural policy are mentioned. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Schmitt, Gunther, 1989. "Farms, Farm Households, and Productivity of Resource Use in Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(2), pages 257-284.
    • Handle: RePEc:oup:erevae:v:16:y:1989:i:2:p:257-84
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    Cited by:

    1. Thomson, Kenneth J. & Davidova, Sophia, 2014. "Economic Aspects of Family Farming in the European Context," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170354, Agricultural Economics Society.
    2. Kislev, Yoav, 1992. "Family Farms, Cooperatives and Collectives," 1991 Conference, August 22-29, 1991, Tokyo, Japan 183343, International Association of Agricultural Economists.
    3. McInerney, John & Turner, Martin, 1991. "Patterns, Performance and Prospects in Farm Diversification," Department of Agricultural Economics Archive 260465, University of Exeter.
    4. Hockmann, Heinrich & Pieniadz, Agata, 2007. "Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7823, European Association of Agricultural Economists.
    5. Hockmann, Heinrich & Pieniadz, Agata & Goraj, Lech, 2007. "Modeling Heterogeneity In Production Models: Empirical Evidence From Individual Farming In Poland," IAMO Discussion Papers 91733, Institute of Agricultural Development in Transition Economies (IAMO).
    6. Marcos Gallacher, 2010. "The changing structure of production: Argentine agriculture 1988-2002," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 3-28, January-D.
    7. Davidova, Sophia & Thomson, Kenneth J, 2014. "Family Farming in the Enlarged EU: Concepts, challenges and prospects," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 170155, European Association of Agricultural Economists.
    8. Schrader, Jörg-Volker, 1991. "Anpassungsprozesse in der ostdeutschen Landwirtschaft: Analyse und Bewertung," Kiel Discussion Papers 171/172, Kiel Institute for the World Economy (IfW Kiel).
    9. repec:zbw:iamodp:91733 is not listed on IDEAS
    10. Hockmann, Heinrich & Pieniadz, Agata, 2009. "Explaining differences in farms efficiencies in Polish agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 51051, International Association of Agricultural Economists.
    11. Andersson, Hans & Ramaswami, Bharat & Moss, Charles B. & Erickson, Kenneth W. & Hallahan, Charles B. & Nehring, Richard F., 2005. "Off-farm Income and Risky Investments: What Happens to Farm and Nonfarm Assets?," 2005 Annual meeting, July 24-27, Providence, RI 19480, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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