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Abstract
By using a two-period model in which farmers must choose one of two alternative production technologies I analyze the relationship between farm scales of farm income and the adoption of new technology. A high type of production techniques yields higher returns but also demands a bigger fixed implementation cost. I find that these fixed implementation costs imply threshold effects in the selection process of production techniques-farmers above a critical level of the first period income select a high type of production techniques while farmers below the threshold select a low type of production techniques.