Small Farms and Agricultural Productivity-A Macro Analysis

Abstract

Small farms measuring less than 2 hectares constitute 85% of the total operated farms in the world. Overwhelming majority of these small farms are located in Asia (87%) followed by Africa (8%) and Europe (4%). In Asia, China accounts for half of the world’s small farms (193) followed by India. Global trends indicate a decline in small farms in developed countries, while there is an increase in small farms in developing countries. Average farm size in Asia and Africa is 1.6 hectare compared to 67 hectares in Latin America, 27 hectares in Europe and 121 hectares in North America. Various studies in India during the 60s, 70s and in the later years have revealed that there is an inverse relationship between size of farms and productivity, despite a few researchers holdings contrary opinion. Findings by UN agencies and National Sample Survey (NSS) have supported farm size and productivity relationship.

Small farms have been the main stay for food security and labour employment in India. Despite their significance in providing food security, family labour employment and economy in management and high productivity per acre, small farms face a few challenges particularly in the wake of globalisation and WTO dispensation. Enhancing the productivity of small farms has been stressed by various experts. Measures like providing modern technology, information and knowledge for better skills and extended credit have been suggested for higher productivity of small farms. Small farms need positive material and policy support by the Government.