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Individual Farming as a Labor Sink Evidence from Poland and.pdf

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Individual Farming as a Labor Sink: Evidence from Poland and Russia Zvi Lerman Department of Agricultural Economics and Management, The Hebrew University, Rehovot, Israel (lerman@agri.huji.ac.il) * Pepijn Schreinemachers Center for Development Research, University of Bonn, Germany (pepijn.schreinemachers@uni-bonn.de) May 2002 Selected paper to be presented at the Annual Meeting of the American Agricultural Economics Association, Long Beach, CA, July 28-31, 2002 Copyright 2002 by Zvi Lerman and Pepijn Schreinemachers. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. * Contact author 1 Individual Farming as a Labor Sink: Evidence from Poland and Russia Abstract In Poland and Russia, small-scale individual farms employ more labor per hectare of land than large-scale corporate farms, without suffering from lower labor productivity. Individual farming is a labor sink for the rural population, and land policies promoting individualization of agriculture in transition countries can alleviate the social consequences of rural unemployment without sacrificing agricultural productivity. Keywords: transition agriculture, agricultural employment, individual farming, corporate farming, land consolidation, farm restructuring Introduction In developing and developed countries, small-scale family farms are observed to use more labor per unit of land than large-sc