The Farm Size-Productivity Relationship: Evidence From Panel Data Analysis of Small- and Medium-Scale Farms in Nigeria

Abstract

The finding that smaller farms are more productive than larger farms has long been documented. At present, evidence in the Sub-Saharan African (SSA) region has been largely limited to data from farms operating 5ha and below. Examining changes in farm size distributions and their relationship with agricultural productivity is important not only for agricultural economists and development researchers but also for evidence-based policymaking which goes beyond the current smallholder-led strategies for development in the region. This study examined the dynamics of farm operations between small-scale farms (SSFs) and medium-scale farms (MSFs) over time in different farm size categories and their relationship with agricultural productivity using farming household data spanning 0–40ha in Nigeria.