Factors influencing the rationalization of Swedish agriculture

Summary The rationalization process has been studied on the basis of the following definition: A rational production structure, given certain conditions and during a certain period, is the one which compared to all other possible structures gives the lowest social costs of production estimated as the opportunity costs of the resources. Thus, the costs elements are particularly observed, i.e., the development of the labour, capital and land resources in agriculture — the volumes and the alternative values. Factors influencing these resources are supposed to be of a push and pull type. Decisive among the push factors are the prices and the supply of technical innovations and among the pull factors the supply of alternative employment opportunities outside agriculture and the commuting distances. Also state rationalization measures are influential, and estimations are given for the degree of influence. Furthermore, a cost-benefit calculation is discussed to demonstrate the effects of these rationalization activities.