Regional and Structural Factors in Farm-Size Variation: A Manitoba Elucidation

The geography of farm-size variation has tended to overlook the relationships between physical size and agricultural productivity. This paper remedies that deficiency by explicitly considering the mechanisms promoting viability across the spectrum of farm-size gradation. Aspects of internal and external economies of scale, interfarm competition, local comparative advantage, and spatial separation are incorporated in a conceptual framework developed for a Canadian Prairie setting (Manitoba). In addition, social and cultural influences on the farm-size determinants are monitored. An equation system is established consisting of three structural equations, one each for large farms, medium-size farms, and small farms, and is calibrated by using two-stage least-squares regression. Results indicate that regional factors tend to overshadow the indices of economies of scale, but that efficiency considerations vary according to the size of farm.