Land Policy and Farm Efficiency ????????? ???????? ? ????????????? ????????

1
Land Policy and Farm Efficiency?????????
???????? ? ????????????? ????????
Agricultural Policy in Moldova World Bank
Workshop, Chisinau, July 14, 2006 ????????
???????? ??????? ??????? ???????? ?????, ???????,
14.07.2006

• Zvi Lerman ??? ??????
• Hebrew University of Jerusalem
  ????????????? ???????????

2
Agricultural land largely privatized?????????
???????????? ?????
Source State Cadastre total agricultural land
2.5 million ha
3
Increasing role of individual sector?????? ???
??????????????? ???????
?????????????
??????? ?????????
4
Ranking of farm types by efficiency ????????
?????? ?? ?????????????

• Individual (family) farms
• ?????????????? (????????) ?????????
• Corporate farms with profit orientation
• ?????????? ? ??????????? ?? ???????
• Production cooperatives, collectives
• ???????????????? ???????????, ????????????
  ?????????

5
GAO recovered in 2000 ???? ???????????? ?
2000 ?.
117
100
6
Land and labor productivity by farm
type?????????????????? ????? ? ?????
??????????? ? ???????? ??????
?????????????????? ?????
?????????????????? ?????
7
Total Factor Productivity
Recent U.S. results Ahearn, Yee, Huffman 2002 An
increase of farm size reduces, rather than
increases, ag productivity On average a type of
diseconomies of size is operating in U.S. farms
?????? ??????????????????
8
Small vs. Large Farms
??????? ? ????? ?????????
Small ????? Large ???????
Agricultural land (ha) 4.48 971
Workers 4.51 332
Agricultural output (000 lei) 25.8 3,230
Output / ha (lei) 6,765 2,745
Output / worker (lei) 6,857 17,135
TFP 6,400 4,700
Workers / ha 1.42 0.26
WB 2003 survey
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What should individualization lead to?? ????
?????? ????? ???????????????? ????????? ??????????

• Higher family income
• ????????? ???????
• Better standard of living
• ????????? ?????? ?????
• Higher commercialization
• ????????? ??????????

10
Family income increases with farm size????????
????? ?????? ? ???????? ?????????
World Bank 2000 survey households and peasant
farms
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Structure of family income Moldova
2000????????? ???????? ??????? ???????
??????
???????????
??????????
12
Moldova 2000
Family income higher for sellers than
non-sellers ????? ???????? ???????? ????, ???
??????????
Commercialization increases with farm
size ?????????? ?????? ? ???????? ????????
13
Family well-being increases with farm
size??????? ????? ?????? ? ???????? ????????
14
Larger peasant farms achieve higher
well-being??????? ????? ?????, ??? ?????????
15
Fragmentation reduces productivity??????
???????????? ?? ?????????????????? ????? ? ?????
Number of parcels ?????????? ????????
16
Growth of land sale transactions???? ????????
?????-??????? ?????
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Farms grow by leasing land?????? ????????????
??????????
Surveys ?????? Own land ??? ?????? Ownlease ???????? lease ????????
1997 2.8 ha 16.9 ha 6
2003 3.8 11.6 21
2005 3.7 9.5 28
18
Agrarian ranks for CIS ???????? ????? ?????
???
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What did we show? ??? ??
?????????

• Individualization of agriculture is conducive to
  sectoral growth
• Among individual farms, more land leads to higher
  income, higher well-being, higher
  commercialization
• Commercialization in turn translates into higher
  family income
• ???????????????? ???????? ?-? ????
• ?????????? ???????? ???????? ???????? ??????,
  ??????????????, ??????????
• ?????????? ???????? ???????? ??????

20
What to do? ??? ???????

• Structure of land tenure strengthen mid-size
  farms
• Land markets eliminate constraints, simplify
  administrative procedures
• Level playing field abandon large farm bias
• Institutions supporting commercialization of
  family farms focus on infrastructure, not
  intervention in farming
• ????????? ???????????????? ?????????? ???????
  ???????????? ???????? ??????? ?????????
• ???????? ?????????? ????? ??????? ?????-????????
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• ????? ?? ??????? ????????? ? ????????????
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