THE FARM SIZE-EFFICIENCY RELATIONSHIP IN SOUTH AFRICAN COMMERCIAL AGRICULTURE

Johan van Zyl

Agrekon, 1995, vol. 34, issue 4

Abstract: This paper briefly discusses the sources of economies of scale, with some international evidence. It provides a picture of the structure of South African agriculture, detailing distributions of Jann size as well as some results of previous studies analysing Jann size efficiencies. An analysis of Jann size-efficiency relationship in commercial fanning is done by utilising representative Jann level survey data on the six major grain producing areas and an irrigation area over the period 1975-1990. The role of policy in explaining these relationships is discussed, while some conclusions are also drawn. The findings have specific implications for land re/om,. The inverse Jam, size-efficiency relationship, which is also present in South African agriculture despite a history of policies favouring relatively large mechanised fam,s, implies that significant efficiency gains can be made if Jam, sizes in the commercial sector becomes smaller. An important element in such a process would be the removal of all policies and distortions favouring larger farms relative to smaller farms.

Keywords: Agricultural and Food Policy; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267829

DOI: 10.22004/ag.econ.267829

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