An Analysis of Farm Size and Scale Merit in Paddy Field Farming

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  • 水田作における規模問題
  • シンポジウム論文 水田作における規模問題
  • シンポジウム ロンブン スイデンサク ニ オケル キボ モンダイ

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Abstract

This study aims to analyze the relationship between farm size and scale merit in paddy field farming, from the point of view of three factors ; productivity, marketing activity, and response to the government’s subsidy program.<br>The first point is that this study confirms structural changes paddy field farming based on Agricultural Census data from 2010, which shows that large farms in the 20 - 30 ha class and group type farms have been increasing rapidly in recent years.<br>The second point is that this study confirms that there are scale merits in rice production. The results cleary show that the scale economy curve goes flat around 10 ha.<br>The third point is based on data on farm type by commodity. I used this data to compare the cost of rice production between large farms, group farms based on community and the other group farming organizations. Our analysis shows that a cost gap does not exist among the farm types. But as we take management costs into account, the cost of the group farming organizations is higher than the other types.<br>The fourth point of this study is based on an analysis of the profitability of the paddy field farming including the effect of government subsidies provided through a set aside program. I find that the marketing activity has a greater effect on profitability of farming than farm size, especially for large farms and group type farming. But the larger farms show a tendency of a deepening dependcy on subsidies.<br>This study concludes that the primary reason for the trend of increased number of larger farms and group type farming organizations is because of the power of marketing activity and the response to the subsidy program rather than the productivity of paddy field farming.

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