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Plantations Agriculture

In: Handbook of Agricultural Economics

Author

Listed:
  • Hayami, Yujiro
Abstract
Large plantations producing tropical cash crops based on hired labor represent a sharp contrast with small family farms, popularly called "peasants" in developing economies. The family farm is an old institution that has existed since time immemorial, but the plantation is a new institution introduced by Western colonialism for extracting tropical cash crops for export to home countries. Large-scale operation of the plantation was necessary for internalizing gains from investment in infrastructure needed for opening vast tracts of unused lands. However, where the communities of indigenous smallholders had already been established, family farms proved to be equally or more efficient producers of tropical export crops using the family labor of low supervision costs, relative to plantations based on hired labor. This advantage of family farms rose as population density increased and rural infrastructure improved, whereas not only economic but also social drawbacks of the plantation system loomed. However, reforms aimed to break down plantations to the operation of smallholders by a government's coercive power could be disruptive and inefficient. A better approach might be to support the initiative of the private sector to reorganize the plantation system into a more decentralized system, such as the contract farming system in which an agribusiness enterprise manages the processing/marketing process and contracts with small growers on the assured supply of farm-produced raw materials.

Suggested Citation

  • Hayami, Yujiro, 2010. "Plantations Agriculture," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 4, chapter 64, pages 3305-3322, Elsevier.
  • Handle: RePEc:eee:hagchp:6-64
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    Citations

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    Cited by:

    1. Derek Byerlee & Klaus Deininger, 2013. "The Rise of Large Farms in Land-Abundant Countries: Do They Have a Future?," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 14, pages 333-353, Palgrave Macmillan.
    2. Hofman, Irna & Visser, Oane, 2021. "Towards a geography of window dressing and benign neglect: The state, donors and elites in Tajikistan’s trajectories of post-Soviet agrarian change," Land Use Policy, Elsevier, vol. 111(C).
    3. World Bank, 2011. "Tackling Poverty in Northern Ghana," World Bank Publications - Reports 2755, The World Bank Group.
    4. J.P.B. Lillesø & C. Harwood & Abayneh Derero & L. Graudal & J. M. Roshetko & R. Kindt & S. Moestrup & W. O. Omondi & N. Holtne & A. Mbora & P. van Breugel & I. K. Dawson & R. Jamnadass & H. Egelyng, 2018. "Why institutional environments for agroforestry seed systems matter," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 89-112, March.
    5. Briones, Roehlano M., 2015. "Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," World Development, Elsevier, vol. 72(C), pages 43-52.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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