			Home About us Contact

Larger Farms (larger + farm)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	60%

Selected Abstracts

External Transaction Costs and Large-scale Farming in Moscow Oblast Coûts de transaction externes et agriculture à grande échelle dans la région de Moscou Externe Transaktionskosten und landwirtschaftliche Großbetriebe in der Oblast Moskau

EUROCHOICES, Issue 2 2010
Nikolai SvetlovArticle first published online: 3 AUG 2010
Summary External Transaction Costs and Large-scale Farming in Moscow Oblast The article addresses the reasons for the domination of large-scale corporate farms in the Moscow oblast of Russia and concludes that high external transaction costs are likely to be an important determining factor. Over the nine year period studied, larger farms are shown to achieve higher performance. Increasing returns to scale, however, were not significant in explaining the superior performance of the larger farms. It is hypothesised that high external transaction costs due to lack of transparency in the milk market, typical of underdeveloped markets, give the larger farms a competitive advantage. Their search costs per unit of output are relatively low and they are able therefore to achieve higher farm-gate prices for milk as a result. The results confirm the dependence of the farm-gate milk price on farm size due to the presence of high transaction costs in the market of milk, the major output of the studied farms. The high performance farms were able to grow during the study period whereas the lower performing farms had limited growth capacity. A more competitive and transparent market environment along with improved infrastructure could lower transaction costs and entry barriers and provide opportunities for smaller scale corporate farms to compete more effectively. Cet article essaie d'expliquer les raisons de la domination des grandes exploitations agricoles constituées en société de la région de Moscou et conclut que l'ampleur des coûts de transaction externes est probablement un facteur explicatif important. Au cours de la période étudiée qui couvre neuf années, les exploitations les plus grandes ont enregistré les performances les plus élevées. Les rendements d'échelle croissants n'ont cependant pas expliqué de manière significative la meilleure performance de ces exploitations. Nous faisons l'hypothèse que les forts coûts de transaction externes liés au manque de transparence sur le marché laitier, typique des marchés incomplètement développés, donnent à ces plus grandes exploitations un avantage compétitif. Leur coût de recherche par unité de produit est relativement bas et elles sont donc capables d'obtenir des prix au niveau de la ferme plus élevés pour le lait. Les résultats confirment la dépendance des prix à la ferme envers la taille de l'exploitation du fait de la présence de coûts de transaction élevés sur le marché laitier, le lait étant le principal produit des exploitations étudiées. Les exploitations très performantes ont pu croître au cours de la période examinée tandis que les capacités de développement des exploitations les moins performantes étaient limitées. Un environnement de marché plus concurrentiel et transparent ainsi que de meilleures infrastructures pourraient réduire les coûts de transaction et les barrières à l'entrée dans le secteur, et fournir des opportunités aux exploitations constituées en société de plus petite taille d'être concurrentielles de manière plus efficace. Dieser Beitrag untersucht, weshalb es in der russischen Oblast Moskau hauptsächlich große Corporate Farms gibt, und kommt zu dem Schluss, dass dafür wahrscheinlich hohe externe Transaktionskosten ausschlaggebend sind. Über den neunjährigen Untersuchungszeitraum waren größere Betriebe erfolgreicher. Steigende Skalenerträge waren jedoch bei der Begründung für den höheren Erfolg der größeren Betriebe nicht maßgeblich. Es wird angenommen, dass hohe externe Transaktionskosten aufgrund von fehlender Transparenz auf dem Milchmarkt , typisch für unterentwickelte Märkte , den größeren Betrieben einen Wettbewerbsvorteil verschaffen. Ihre Suchkosten pro Produkteinheit sind relativ gering, daher sind sie in der Lage, höhere Preise für Milch ab Hof zu erzielen. Die Ergebnisse bestätigen die Abhängigkeit des Preises für Milch ab Hof von der Betriebsgröße, weil es auf dem Markt für Milch (dem wichtigsten Produkt der untersuchten Betriebe) hohe Transaktionskosten gibt. Den erfolgreichen Betrieben gelang es, über den Untersuchungszeitraum zu wachsen, während die leistungsschwächeren Betriebe nur eingeschränkt wachstumsfähig waren. Ein wettbewerbsfähigeres und transparenteres Marktumfeld in Kombination mit einer besseren Infrastruktur könnte die Transaktionskosten und Marktzugangsbeschränkungen senken sowie kleineren Corporate Farms Möglichkeiten eröffnen, um effektiver am Wettbewerb teilzunehmen. [source]

Optimal farm size in an uncertain land market: the case of Kyrgyz Republic

AGRICULTURAL ECONOMICS, Issue 2009
Sara Savastano
Option value theory; Farm size; Uncertainty; Irreversibility Abstract This article applies a real options model to the problem of land development. Making use of the 1998,2001 Kyrgyz Household Budget Survey, we show that when the hypothesis of decreasing return to scale holds, the relation between the threshold value of revenue per hectare and the amount of land cultivated is positive. In addition, the relation between the threshold and the amount of land owned is positive in the case of continuous supply of land and negative when there is discontinuous supply of land. The direct consequence is that, in the first case, smaller farms will be more willing to rent land and exercise the option where, in the second case, larger farms will exercise first. The results suggest three main conclusions: (i) the combination of uncertainty and irreversibility is an important factor in land development decisions, (ii) farmer behavior is consistent with the continuous profit maximization model, and (iii) farming unit revenue tends to be positively related to farm size, once uncertainty is properly accounted for. [source]

Paraquat and sustainable agriculture

PEST MANAGEMENT SCIENCE (FORMERLY: PESTICIDE SCIENCE), Issue 4 2004
Richard H Bromilow
Abstract Sustainable agriculture is essential for man's survival, especially given our rapidly increasing population. Expansion of agriculture into remaining areas of natural vegetation is undesirable, as this would reduce biodiversity on the planet. Maintaining or indeed improving crop yields on existing farmed land, whether on a smallholder scale or on larger farms, is thus necessary. One of the limiting factors is often weed control; biological control of weeds is generally of limited use and mechanical control is either often difficult with machinery or very laborious by hand. Thus the use of herbicides has become very important. Minimum cultivation can also be important, as it reduces the power required to work the soil, limits erosion and helps to maintain the organic matter content of the soil. This last aspect helps preserve both the structure of soil and its populations of organisms, and also sustains the Earth's soil as a massive sink for carbon, an important consideration in the light of global warming. The introduction of the bipyridinium herbicide paraquat in the early 1960s greatly facilitated weed control in many crops. Paraquat has the unusual property of being active only by direct spray onto plants and not by uptake from soil in which strong binding deactivates it. Together with its rapid action in light in killing green plant tissue, such properties allow paraquat to be used in many crops, including those grown by low-tillage methods. This paper reviews the ways in which agricultural systems have been and are being developed to make use of these properties, and provides a risk/benefit analysis of the world-wide use of paraquat over nearly 40 years. Copyright © 2004 Society of Chemical Industry [source]

Remnant habitats for grassland species in an abandoned Swedish agricultural landscape

APPLIED VEGETATION SCIENCE, Issue 3 2010
Anna Dahlström
Abstract Questions: Which factors influence the persistence of vascular grassland plants in long-abandoned (at least 50 yr) arable fields and meadows? What might be the implications of current levels of species richness on abandoned arable fields and meadows for future restoration? Location: Forested highlands of Kilsbergen, south central Sweden. Methods: The abundance of all vascular plant species was investigated in three habitat types: former arable fields, hay meadows and outlands (pastures) at 27 farms, abandoned for either approximately 50 yr or 90 yr. Time since abandonment, tree cover, soil depth, degree of soil podsol development, size of the infield area and two measures of connectivity were used as predictors for species richness and species composition. Results: Former outland had denser tree cover, fewer species and fewer grassland species than former arable fields and hay meadows, irrespective of time since abandonment. Former hay meadows and arable fields with a longer time since abandonment were less rich in species, more wooded and had greater podsolization than meadows and fields abandoned at a later stage. Species richness was higher in hay meadows and arable fields at farms with larger infield area and deeper soils compared with farms with smaller infield area and shallower soils. The greatest richness of species and most open habitat were former arable fields at larger farms abandoned 50 yr before the study. Former arable fields had the highest number of grassland species. Conclusion: After 50 yr of abandonment, former arable fields were the most important remnant habitats for grassland species and may be a more promising target for restoration than formerly managed grasslands. [source]

Do family farms really converge to a uniform size?

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 1 2010
The role of unobserved farm efficiency
We analyse the growth of family farms in Israeli cooperative villages during a period of economic turmoil. We use instrumental variables to account for the endogeneity of initial farm size, and correct for selectivity as a result of farm survival. We also include a technical efficiency index, derived from the estimation of a stochastic frontier production model, as an explanatory variable. Our aim is to check whether ignoring efficiency could have been the reason for convergence results obtained elsewhere in the literature. We found that technical efficiency is an important determinant of farm growth, and that not controlling for technical efficiency could seriously bias the results. In particular, larger farms are found to grow faster over time, while without controlling for technical efficiency the farm growth process seemed to be independent of initial farm size. The increasing polarisation of farm sizes in Israel has ramifications for the inefficiencies induced by the historical quota system, for the political power of the farm sector and for the social stability of farm communities. [source]