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Abstract

In contrast to the increasing trend in farm size found in most agricultural sectors, the absolute number of producers and relative share of total production from small farms growing green leaf tea in Sri Lanka have increased significantly over time. The boom in peasant production and the corresponding decline in plantations are due to the same general drivers explaining the increase in farm size elsewhere. Government programs and price effects that reduced revenue uncertainty and relative costs of production have enhanced the competitive position of small farmers relative to large estates.

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