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Consolidation Policies and Small-Farm Agriculture in Northwest Portugal

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  • Monke, Eric
  • Avillez, Francisco
  • Ferro, Manuela

Abstract

This paper discusses linkages between land policy and structural change on small farms in northwest Portugal. Policy has attempted to increase farm incomes through land consolidation programs, legal limits on fragmentation, and regulations that allow credit for land purchase to be used only for consolidation. This paper uses a profit maximization model to show that the farmer's benefits from consolidation are positively related to the capacity utilization of own-labor and capital resources. If farm resources are under-employed, the gains from consolidation are reduced. Empirical data for small farms in Portugal show that gains from consolidation are small in comparison to the gains from growth in farm size, even if growth entails increasing fragmentation. In this circumstance, consolidation policies serve only to exclude some small farmers from opportunities for income growth. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Monke, Eric & Avillez, Francisco & Ferro, Manuela, 1992. "Consolidation Policies and Small-Farm Agriculture in Northwest Portugal," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(1), pages 67-83.
    • Handle: RePEc:oup:erevae:v:19:y:1992:i:1:p:67-83
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    Cited by:

    1. Tomomi Tanaka, 2005. "Resource allocation with spatial externalities: Experiments on land consolidation," Experimental 0511004, University Library of Munich, Germany.
    2. Ostapchuk, I. & Curtiss, J. & Gagalyuk, T., 2018. "Holding Affiliation Effects on Performance and Growth: Analysis of Ukrainian Farms," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277468, International Association of Agricultural Economists.
    3. Gonzalez, X.P. & Marey, M.F. & Alvarez, C.J., 2007. "Evaluation of productive rural land patterns with joint regard to the size, shape and dispersion of plots," Agricultural Systems, Elsevier, vol. 92(1-3), pages 52-62, January.
    4. Guiomar, N. & Godinho, S. & Pinto-Correia, T. & Almeida, M. & Bartolini, F. & Bezák, P. & Biró, M. & Bjørkhaug, H. & Bojnec, Š. & Brunori, G. & Corazzin, M. & Czekaj, M. & Davidova, S. & Kania, J. & K, 2018. "Typology and distribution of small farms in Europe: Towards a better picture," Land Use Policy, Elsevier, vol. 75(C), pages 784-798.
    5. Sebastián Lozano & Belarmino Adenso-Díaz, 2021. "A DEA approach for merging dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(6), pages 209-219.
    6. Wu, Ziping & Liu, Minquan & Davis, John, 2005. "Land consolidation and productivity in Chinese household crop production," China Economic Review, Elsevier, vol. 16(1), pages 28-49.
    7. Gonzalez, X. P. & Alvarez, C. J. & Crecente, R., 2004. "Evaluation of land distributions with joint regard to plot size and shape," Agricultural Systems, Elsevier, vol. 82(1), pages 31-43, October.

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