Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine

With farms cultivating tens or hundreds of thousands of hectares, Ukraine is often used to demonstrate the existence of economies of scale in modern grain production. Panel data analysis for all the country's farms with more than 200 hectares...

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Main Authors: Deininger, Klaus, Nizalov, Denys, Singh, Sudhir K.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
FAO
TAX
Online Access:http://documents.worldbank.org/curated/en/2013/07/18030279/mega-farms-future-global-agriculture-exploring-farm-size-productivity-relationship
http://hdl.handle.net/10986/15909
id okr-10986-15909
recordtype oai_dc
spelling okr-10986-159092021-04-23T14:03:26Z Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine Deininger, Klaus Nizalov, Denys Singh, Sudhir K. AGRIBUSINESS AGRICULTURAL COMMODITIES AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL LAND AGRICULTURAL MARKETS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURE ANIMALS ATTRITION BARLEY BARRIERS TO ENTRY CAPITAL COSTS COLLUSION COMMODITY COMMUNISM COMPARATIVE ADVANTAGE COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE COOPERATIVES CORN CROP CROP PRODUCTION DEMAND FOR FOOD DEMOCRACY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DRIVERS DUAL ECONOMY ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC PERFORMANCE ECONOMICS ECONOMIES OF SCALE EMPLOYMENT EQUIPMENT EXPORT GROWTH FACTOR MARKETS FACTORS OF PRODUCTION FAO FARM FARM GROWTH FARM STRUCTURES FARMERS FARMING FARMS FERTILIZER FINANCIAL SECTOR FIXED COSTS FOOD PRICES FOOD SECURITY FRUITS GRAIN GRAIN PRODUCTION GRAINS HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCREASING RETURNS INCREASING RETURNS TO SCALE INCUMBENT INSURANCE INTEGRATION LABOR INTENSIVE TECHNOLOGIES LABOR MARKET LABOR MARKETS LAND DISTRIBUTION LAND REFORM LIVESTOCK MACROECONOMICS MAIZE MANAGERIAL EFFICIENCY MARGINAL PRODUCT MARGINAL VALUE NEGATIVE EXTERNALITIES OILSEED PRICES OILSEEDS OLIGARCHY OPPORTUNITY COST PATTERNS OF SETTLEMENT PLANTATIONS POLITICAL ECONOMY POLITICAL PARTICIPATION POULTRY PRICE CONTROLS PRODUCTION FUNCTION PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC GOODS R&D REGIONAL PRODUCTIVITY RENT SEEKING RENTS ROOT CROPS RURAL DEVELOPMENT SECURE PROPERTY RIGHTS SEED SMALL FARMERS SMALL PRODUCERS SMALLHOLDER AGRICULTURE SOCIAL COST SOCIAL STRUCTURE SOIL FERTILITY SOIL QUALITY SOILS SOYBEAN STRUCTURAL CHANGE SUGAR SUGAR BEET SUNFLOWER SURPLUS LABOR TAX TILLAGE TOTAL FACTOR PRODUCTIVITY TRADE POLICY UNSKILLED LABOR VALUE OF OUTPUT VEGETABLES WAGES WEALTH WHEAT YIELDS With farms cultivating tens or hundreds of thousands of hectares, Ukraine is often used to demonstrate the existence of economies of scale in modern grain production. Panel data analysis for all the country's farms with more than 200 hectares in 2001-2011 suggests that higher yields and profits are due to unobserved factors at rayon (district) and farm level rather than economies of scale. Productivity growth was driven not by farm expansion but by exit of unproductive and entry of more efficient farms. Higher initial shares of area under farms with more than 3,000 or 5,000 hectares at the rayon level significantly reduce subsequent exit, suggesting that land concentration reduces productivity growth. The paper draws implications for global evolution of farm structures. 2013-09-27T18:33:30Z 2013-09-27T18:33:30Z 2013-07 http://documents.worldbank.org/curated/en/2013/07/18030279/mega-farms-future-global-agriculture-exploring-farm-size-productivity-relationship http://hdl.handle.net/10986/15909 English en_US Policy Research Working Paper;No.6544 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Ukraine
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRIBUSINESS
AGRICULTURAL COMMODITIES
AGRICULTURAL DEVELOPMENT
AGRICULTURAL ECONOMICS
AGRICULTURAL LAND
AGRICULTURAL MARKETS
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURE
ANIMALS
ATTRITION
BARLEY
BARRIERS TO ENTRY
CAPITAL COSTS
COLLUSION
COMMODITY
COMMUNISM
COMPARATIVE ADVANTAGE
COMPETITIVE MARKETS
CONSTANT RETURNS TO SCALE
COOPERATIVES
CORN
CROP
CROP PRODUCTION
DEMAND FOR FOOD
DEMOCRACY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DRIVERS
DUAL ECONOMY
ECONOMETRICS
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMIC OUTCOMES
ECONOMIC PERFORMANCE
ECONOMICS
ECONOMIES OF SCALE
EMPLOYMENT
EQUIPMENT
EXPORT GROWTH
FACTOR MARKETS
FACTORS OF PRODUCTION
FAO
FARM
FARM GROWTH
FARM STRUCTURES
FARMERS
FARMING
FARMS
FERTILIZER
FINANCIAL SECTOR
FIXED COSTS
FOOD PRICES
FOOD SECURITY
FRUITS
GRAIN
GRAIN PRODUCTION
GRAINS
HUMAN CAPITAL
INCOME
INCOME DISTRIBUTION
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INCUMBENT
INSURANCE
INTEGRATION
LABOR INTENSIVE TECHNOLOGIES
LABOR MARKET
LABOR MARKETS
LAND DISTRIBUTION
LAND REFORM
LIVESTOCK
MACROECONOMICS
MAIZE
MANAGERIAL EFFICIENCY
MARGINAL PRODUCT
MARGINAL VALUE
NEGATIVE EXTERNALITIES
OILSEED PRICES
OILSEEDS
OLIGARCHY
OPPORTUNITY COST
PATTERNS OF SETTLEMENT
PLANTATIONS
POLITICAL ECONOMY
POLITICAL PARTICIPATION
POULTRY
PRICE CONTROLS
PRODUCTION FUNCTION
PRODUCTION PROCESS
PRODUCTIVITY
PRODUCTIVITY GROWTH
PUBLIC GOODS
R&D
REGIONAL PRODUCTIVITY
RENT SEEKING
RENTS
ROOT CROPS
RURAL DEVELOPMENT
SECURE PROPERTY RIGHTS
SEED
SMALL FARMERS
SMALL PRODUCERS
SMALLHOLDER AGRICULTURE
SOCIAL COST
SOCIAL STRUCTURE
SOIL FERTILITY
SOIL QUALITY
SOILS
SOYBEAN
STRUCTURAL CHANGE
SUGAR
SUGAR BEET
SUNFLOWER
SURPLUS LABOR
TAX
TILLAGE
TOTAL FACTOR PRODUCTIVITY
TRADE POLICY
UNSKILLED LABOR
VALUE OF OUTPUT
VEGETABLES
WAGES
WEALTH
WHEAT
YIELDS
spellingShingle AGRIBUSINESS
AGRICULTURAL COMMODITIES
AGRICULTURAL DEVELOPMENT
AGRICULTURAL ECONOMICS
AGRICULTURAL LAND
AGRICULTURAL MARKETS
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURE
ANIMALS
ATTRITION
BARLEY
BARRIERS TO ENTRY
CAPITAL COSTS
COLLUSION
COMMODITY
COMMUNISM
COMPARATIVE ADVANTAGE
COMPETITIVE MARKETS
CONSTANT RETURNS TO SCALE
COOPERATIVES
CORN
CROP
CROP PRODUCTION
DEMAND FOR FOOD
DEMOCRACY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DRIVERS
DUAL ECONOMY
ECONOMETRICS
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMIC OUTCOMES
ECONOMIC PERFORMANCE
ECONOMICS
ECONOMIES OF SCALE
EMPLOYMENT
EQUIPMENT
EXPORT GROWTH
FACTOR MARKETS
FACTORS OF PRODUCTION
FAO
FARM
FARM GROWTH
FARM STRUCTURES
FARMERS
FARMING
FARMS
FERTILIZER
FINANCIAL SECTOR
FIXED COSTS
FOOD PRICES
FOOD SECURITY
FRUITS
GRAIN
GRAIN PRODUCTION
GRAINS
HUMAN CAPITAL
INCOME
INCOME DISTRIBUTION
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INCUMBENT
INSURANCE
INTEGRATION
LABOR INTENSIVE TECHNOLOGIES
LABOR MARKET
LABOR MARKETS
LAND DISTRIBUTION
LAND REFORM
LIVESTOCK
MACROECONOMICS
MAIZE
MANAGERIAL EFFICIENCY
MARGINAL PRODUCT
MARGINAL VALUE
NEGATIVE EXTERNALITIES
OILSEED PRICES
OILSEEDS
OLIGARCHY
OPPORTUNITY COST
PATTERNS OF SETTLEMENT
PLANTATIONS
POLITICAL ECONOMY
POLITICAL PARTICIPATION
POULTRY
PRICE CONTROLS
PRODUCTION FUNCTION
PRODUCTION PROCESS
PRODUCTIVITY
PRODUCTIVITY GROWTH
PUBLIC GOODS
R&D
REGIONAL PRODUCTIVITY
RENT SEEKING
RENTS
ROOT CROPS
RURAL DEVELOPMENT
SECURE PROPERTY RIGHTS
SEED
SMALL FARMERS
SMALL PRODUCERS
SMALLHOLDER AGRICULTURE
SOCIAL COST
SOCIAL STRUCTURE
SOIL FERTILITY
SOIL QUALITY
SOILS
SOYBEAN
STRUCTURAL CHANGE
SUGAR
SUGAR BEET
SUNFLOWER
SURPLUS LABOR
TAX
TILLAGE
TOTAL FACTOR PRODUCTIVITY
TRADE POLICY
UNSKILLED LABOR
VALUE OF OUTPUT
VEGETABLES
WAGES
WEALTH
WHEAT
YIELDS
Deininger, Klaus
Nizalov, Denys
Singh, Sudhir K.
Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
geographic_facet Europe and Central Asia
Ukraine
relation Policy Research Working Paper;No.6544
description With farms cultivating tens or hundreds of thousands of hectares, Ukraine is often used to demonstrate the existence of economies of scale in modern grain production. Panel data analysis for all the country's farms with more than 200 hectares in 2001-2011 suggests that higher yields and profits are due to unobserved factors at rayon (district) and farm level rather than economies of scale. Productivity growth was driven not by farm expansion but by exit of unproductive and entry of more efficient farms. Higher initial shares of area under farms with more than 3,000 or 5,000 hectares at the rayon level significantly reduce subsequent exit, suggesting that land concentration reduces productivity growth. The paper draws implications for global evolution of farm structures.
format Publications & Research :: Policy Research Working Paper
author Deininger, Klaus
Nizalov, Denys
Singh, Sudhir K.
author_facet Deininger, Klaus
Nizalov, Denys
Singh, Sudhir K.
author_sort Deininger, Klaus
title Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
title_short Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
title_full Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
title_fullStr Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
title_full_unstemmed Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
title_sort are mega-farms the future of global agriculture? exploring the farm size-productivity relationship for large commercial farms in ukraine
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/07/18030279/mega-farms-future-global-agriculture-exploring-farm-size-productivity-relationship
http://hdl.handle.net/10986/15909
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