Temel, Tugrul (2011): New facts for old debates: Farm size and productivity in US agriculture.
Download (651kB) | Preview
This study examines the relationship between farm size and productivity in U.S. agriculture during 1982-92. A nonparametric regression method is applied to detect ex-post geographical patterns in changes in farm size and productivity. The estimations show that (i) in 1982 productivity per acre was high in the East, West, and South, modest in the middle part of the U.S., and low in the North, and this pattern remained the same during 1987-92, while the level of productivity continously increased over time; (ii) during 1982-92 farm size remained unchanged, large farms in the middle belt stretching from North to South and small ones in the East, West and South; and �nally (iii) during 1982-92 an inverse relationship grew stronger between farm size and productivity. Furthermore, with the application of Markov chains approach, we projected the above patterns into the future. The �ndings suggest: (i) farms are likely to experience ower productivity; (ii) small and large farms are likely to coexist as medium-sized farms to vanish; and (iii) the inverse relationship is likely to show a strong geographical pattern.
|Item Type:||MPRA Paper|
|Original Title:||New facts for old debates: Farm size and productivity in US agriculture|
|Keywords:||farm size; productivity; geography; inverse relationship; U.S. agriculture; nonparametric regression; Markov chains.|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R14 - Land Use Patterns
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy
|Depositing User:||Tugrul Temel|
|Date Deposited:||29. Jun 2011 16:52|
|Last Modified:||27. Sep 2015 06:37|
Barrett, C. (1993). On the price risk and the inverse farm size-productivity relationship (Staff Paper No. 369). Wisconsin: University of Wisconsin-Madison, Department of Agricultural Economics.
Binswanger, H., & Rozensweig, M. (1986). Behavioral and material determinants of production relations in agriculture. Journal of Development Studies, 22, 503-539.
Chavas, J. P., & Cox, T. (1988). A nonparametric analysis of agricultural technology. American Journal of Agricultural Economics, 70, 303-310.
Cochran, W. (1966). Sampling techniques. New York: John Wiley & Sons. Inc. (2nd edition).
Cornia, G. (1985). Farm size, land yields, and the agricultural production function: An analysis for �fteen developing countries. World Development, 13, 513-534.
Cox, T., & Chavas, J. P. (1990). A nonparametric analysis of productivity: The case of US agriculture. European Review of Agricultural Economics, 17, 449-464.
Debreu, G. & Herstein, I.N. (1953). Non-negative square matrices. Econometrica, 21, 597-607.
de Janvry, A. (1987). Farm structure, productivity, and poverty (Working Paper no. 432). Berkeley, CA: University of California, Giannini Foundation of Agricultural Economics.
de Janvry, A., Fafchaamps, M., & Sadoulet, E. (1991). Peasant household behavior with missing markets: Some paradoxes explained. Economic Journal, 101, 1400-1417.
Dismukes, R., Harwood, J. L., Bentley, S. E. (1997). Characteristics and risk management needs of limited-resource and socially disadvantaged farmers (Agriculture Information Bulletin No. 733). Commercial Agriculture Division, Economic Research Service, and Risk Management Agency, U.S. Department of Agriculture.
Eckstein, S., Donald, G., Horton, D., & Caroll, T. (1978). Land reform in Latin America: Bolivia, Chile, Mexico, Peru, and Venezuela (World Bank Staff Working Paper No. 275). Washington, D.C.: World Bank.
Edwards, C., Smith, M. G., & Patterson, R. N. (1985). The changing distribution of farms by size: A Markov analysis. Agricultural Economics Resources, 37, 1-16.
Eswaran, M., & Kotwal, A. (1986). Access to capital as a determinant of the organization of production and resource allocation in an agrarian economy. Economic Journal, 96, 482-498.
Evenson, R. E., & Hu¤man, W. B. (1997). Long-run structural and productivity change in U.S. agriculture: E¤ects of prices and policies. Unpublished manuscript, Yale-Economic Growth Center at New Haven.
Fawson, C., & Shumway, R. C. (1988). A nonparametric investigation of agricultural production behavior for U.S. subregions. American Journal of Agricultural Economics, 70, 311-317.
Feder, G. (1985). The relation between farm size and farm productivity: The role of family labor, supervision and credit constraints. Journal of Development Economics, 18, 297-313.
Gale, F. F. (1993). Why did the number of young farm entrants decline? American Journal of Agricultural Economics, 75, 138-146.
Garcia, P., O¤utt, S. E., & Sonka, S. T. (1987). Size distribution and growth in a sample of Illinois cash grain farms. American Journal of Agricultural Economics, 69(2), 471-476.
Gardner, D. B., & Rope, R. D. (1978). How is scale and structure determined in agriculture? American Journal of Agricultural Economics, 60(2), 295-302.
Goodman, A. L., & Anderson, W. T. (1957). Statistical inference about Markov chains. The Annals of Mathematical Statistics, XXVIII, 89-110.
Goodman, A. L. (1962). Statistical methods for analyzing processes of change. The American Journal of Sociology, 68, 57-78.
Hardle, W. (1990). Applied nonparametric regression. New York: Cambridge University Press.
Harris, G. D., & Nehring, R. F. (1976). Impact of farm size on the bidding potential for agricultural land. American Journal of Agricultural Economics, 58, 161-69.
Hoel, P. G., Port, S. C., & Stone, C. J. (1987). Introduction to stochastic processes. Illinois: Waveland Press, Inc.
Hoppe, R. A., Green, R. C., Banker, D., Kalbacher, J. Z., & Bentley, S. E. (1993). Structural and �nancial characteristics of U.S. farms, 1995: 18th annual family farm report to the congress (Agriculture Information Bulletin No. 728). Rural Economy Division, Economic Research Service, U.S. Department of Agriculture.
Keyzer, M. A., & Sonneveld, B. G. J. S. (1997). Using the molli�er method to characterize data sets and models: The case of the universal soil loss equation. ITC Journal, 97(3-4), 263-272.
Kislev, Y., & Peterson, W. (1982). Prices, technology, and farm size. Journal of Political Economy, 90(31), 578-595.
Lipton, M. (1993). Land reform as commenced business: the evidence against stopping. World Development, 21(4), 641-657.
Quah, D. (1993). Empirical cross-section dynamics in economic growth. European Economic Review, 37(2-3), 426-34.
Quah, D. (1996). Empirics for economic growth and convergence. European Economic Review, 40, 1353-1375.
Peterson, L. W. (1997). Are large farms more e¢ cient? (Staff Papers No. P97-02). Minnesota: University of Minnesota, Department of Applied Economics.
Repetto, R., & Holmes, T. (1983). The role of population in resource depletion in developing countries. Population and Development Review, 9(4), 609-632.
Silverman, B. W. (1986). Density estimation for statistics and data analysis. New York: Chapman and Hall.
Sommer, J. E., Hoppe, R. A., Green, R. C., & Korb, P. J. (1995). Structural and �nancial characteristics of U.S. farms, 1995: 20th annual family farm report to the congress (Agriculture Information Bulletin No. 746). Resource Economics Division, Economic Research Service, U.S. Department of Agriculture.
Stanton, F. B. (1978). Perspective on farm size. American Journal of Agricultural Economics, 60, 727-37.
Taslim, M. (1989). Supervision problems and the size-productivity relation in Bangladesh agriculture. Oxford Bulletin of Economics and Statistics, 51, 55-71.
Tavernier, M. E., Temel, T., & Li, F. (1997). The role of farm ownership in off-farm work participation. Agricultural and Resource Economics Review, 26(1), 67-81.
USDA. (1992). CD-Rom by USDA. Washington, DC: U.S. Department of Agriculture.
Yatchew, A. (1998). Nonparametric regression techniques in economics. Journal of Economic Literature, XXXVI, 669-721.