Farm Size and Productivity Revisited

The negative relationship between farm size and output per acre has been tested for Pakistan and it is concluded that the observed negative or positive correlations between land productivity and the farm size in the case of Pakistan are the result of over-aggregation. Land productivity curve is U-Shaped; the productivity is high on desperately small farms due to intensive labour and irrigation use and on largest farms due to capital-intensive inputs. The middle-level efficient entrepreneur farmer has so far failed to emerge.