Farm Structure Development under Market Economic Conditions Theoretical Considerations and Empirical Evidence

SVEND RASMUSSEN

The Royal Veterinary and Agricultural University, Department of Economics and Natural Resources, KVL. Rolighedsvej 23. DK-1958 Copenhagen, Denmark

Abstract

RASMUSSEN, SV., 1999. Farm structure development under market economic conditions theoretical considerations and empirical evidence. Bulg. J. Agric. Sci., 5:291-297

Structural changes in agriculture under market economic are determined by a number of factors. Alternative models describing structural change in agriculture and related industries have been presented by for instance Boehlje (1992), and Goddard et. al. (1993) give a good review of the economics of structural change in agriculture, describing factors that may influence the development.
Based on these two papers, a theory/model of structural change is further developed. The theoretical considerations are confronted with structural development in Danish agriculture over last twenty years, and explanations for the development towards larger and more specialized firms are given. In this context, the relationship between structural development and changing productivity is analysed, and empirical primary due to changes in technology due to changes in farm size.

Key words: farm structure development, market economic conditions, theoretical considerations Danish agriculture


Svend Rasmussen, associate professor, Dr., Ph.D. Department of Economics and Natural Resources. The Royal Veterinary and Agricultural University, KVL. Rolighedsvej 23. DK-1958 Copenhagen, Denmark