World Bank Voices
Syndicate content

Add new comment

Submitted by Richard Rozwadowski on

An important topic and first I would question the name 'Super Farm' which does imply some 'extra efficiency' or other benefit. I am working in Ukraine, where we have 'Mega Farms' - let's say over 50k Ha but many are over 200k Ha. First there is a fundamental misconception that there is a never ending economy of scale - this is just untrue - a big tractor can do about 10k Ha and above that you need another one. My best example is an American Farmer with 2,000 Ha who runs it himself with some part-time help at harvest and his wife, who works somewhere else, does the accounts in her spare time. Mega Farms are less efficient as they employ many managers / supervisors to ensure work is being done properly and these produce nothing. The only real advantage these farms have is that (for now) they have been able to raise finance from investors but there is very little evidence that these farms can make sustainable good profits from farming and plenty of evidence to show that the traditional family farm or smaller commercial farm (say up to 20k Ha) are far more efficient. However the Mega Farms are able to buy the latest equipment and, importantly, invest in grain storage and drying and processing and this is where they have made profits. Certainly they would be more profitable by forgetting about farming and buying in their grain from regular farmers. This would also address the issues of employment and poverty reduction.

Plain text

  • Allowed HTML tags: <br> <p>
  • Lines and paragraphs break automatically.