Abstract:
This thesis shows that there is evidence of a negative relationship between farm size and productivity for a large proportion of the most marginalized Zambian smallholders, and this has important policy implications for the development of the agricultural sector in Zambia.
The analysis of the farm size-productivity relationship indicates a potential poverty trap for small-scale farmers. Increasing returns to farm size is evident, however only above a threshold plot size of 3 hectares. The potential poverty trap is caused by market imperfections in rural markets and the fact that most small-scale farmers rely on wage-income from casual work on larger farms. This makes them potential losers on export-led agricultural growth. Because of this small-scale farming can play a key role in ghting hunger, however it can also do the direct opposite and instead keep farmers stuck in a low level equilibrium. Smallholder farmers dependent on agricultural wage-income are possible losers on agricultural growth, and it is essential to address the constraints faced by this group.