Outlining Optimum Size Holding for Production: A Farm Management Perspective

  • Haripriya Dutta Research Scholar Deptt. of Business Administration Tezpur University-784028, Assam
  • Anjan Bhuyan Associate Professor, Department of Business Administration, Tezpur University-784028, Assam
Keywords: average cost of production, farm management, optimum farm size, technical Efficiency


The family farms overwhelm the institutional farms worldwide. They are the prime contributors to food security at large. Therefore, it is necessary for the family to determine a reasonable size of farmland for worthwhile cultivation. In this paper, an optimum size of farmland is tried to be outlined in context of Assam. Data are collected from 360 households across the six agro-climatic zones of the state from the diverse range of farm size. The study identifies the optimal agricultural units based on two parameters–one,  farm households with a combination of production factors giving highest range of economic efficiency in producing a specific level of outputs; second, farm households with the maximum profit per hectare of land derived from total cost (TC) and total revenue (TR) approach. These two parameters outline a range of farm size between 1.26 ha. to 3.37 ha. as relatively efficient size for paddy cultivation. The study is expected to help the policy makers in remapping the land distribution of Assam. It will help the state to develop as the nation’s key strategic area for paddy production. An alternative way to adjust farm size other than land reforms measures is also forwarded as suggestive measure. This study is also put to serve as the Modus Vivendi on the age old debate of small versus large farm.



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