IS INVERSE RELATIONSHIP A PHENOMENON?

Abstract

Inverse productivity basically disproves the land productivity which is presumably based on the size of the farm. The main aim of this paper is to analyse the empirical studies which have been made on this issue in detail so far and develop some policy implications. The empirical results show that an inverse relationship in developing countries might become more of an issue because of the predominant sector in Agriculture.  Some suggestions can be made in order to handle problems that small farms encounter. The first and most important is the high value added product. The government should encourage small farmers to grow high value added products by controlling market supply and demand. Second, public policies should be sufficient to attract private investors in transportation, retail chain stores, processing and storage. The technology level of bigger farms should be costless and easily transferred to smaller farms. Last but not least, small farms are one of the most fragile issues concerning family farms and food security.