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S2 Ep1: Are there too many farms in the world?

VoxDev Development Economics

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Taking Advantage of the Economical Scale of Machinery

As farm scale increases, you're able to take advantage of the economies of scale associated with machinery. An eight row harvester can harvest a lot more crop per minute than a four row harvesters. But so if you have a small farm, you can't take advantage of those obvious scale economies. So we have this curve globaly where productivity goes down as farms get a little bit bigger, and then goes way, way up as they get larger and larger and larger.

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