A Historical Review of Changes in Farm Size in Canada

Chen, Hongyu; Weersink, Alfons; Beaulieu, Martin; Lee, Yu Na; Nagelschmitz, Katrin

doi:10.22004/ag.econ.283563

Cited by 1 publication

(1 citation statement)

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“…Financial considerations in the decision to invest or divest must be viewed in conjunction with the ability to act on the decision. Whilst some small and medium-sized producers are divesting because farming becomes unsustainable (see Gale, 2003; Gras, 2009; Chen et al. , 2019), others offset the real decline in income at the primary production level through vertical or horizontal expansion or both (Productivity Commission, 2005; Castro-Fontoura, 2016).…”

Section: Applying Structural Change Theory To South Africa's Commerci...mentioning

confidence: 99%

Confident or captured? Commercial producers in South Africa

Cloete

Mann

Delport³

2022

IJSE

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PurposeAmong the many things that land reform in South Africa suffers from is the lack of scientific attention paid to the willingness of commercial producers to exit or contract. This research aims to contribute to literature on this phenomenon.Design/methodology/approachThe interplay between the business confidence and the opportunity costs of a farming enterprise represented in a survey sample of 450 commercial farm owners is investigated, paying special attention to owners who want to, but cannot exit.FindingsThe regression analysis suggests that both forces have a strong influence on structural change, as they depict the rather complex interplay between the two main factors that may keep farms in business, one of which is a positive business climate and the other the capital invested. A subsequent cluster analysis indicates that there is a major cluster of producers who are pessimistic about the prospects of their farming business, but who are unable or unwilling to leave their farms.Research limitations/implicationsA limitation of our study is the fairly small sample size (91 exiters in the sample), so caution is advised in generalising the results. Another limitation is the overrepresentation of the Western Cape.Practical implicationsIt is likely that the productivity of South African agriculture could improve if some of these producers caught in the “system” could leave farming to create new opportunities for entrepreneurial entrants.Originality/valueThe importance of a captured state has been neglected both in theoretical frameworks and in practical concepts of commercial agriculture in South Africa.

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Section: Applying Structural Change Theory To South Africa's Commerci...mentioning

confidence: 99%