Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine
With farms cultivating tens or hundreds
of thousands of hectares, Ukraine is often used to
demonstrate the existence of economies of scale in modern
grain production. Panel data analysis for all the
country's farms with more than 200 hectares in
2001-2011 suggests that higher yields and profits are due to
unobserved factors at rayon (district) and farm level rather
than economies of scale. Productivity growth was driven not