TY  - CPAPER 
AB  - Past studies suggest that family farming is more productive than farming groups, but empirical studies are not enough to conclude which is more efficient. This paper tries to econometrically analyze the efficiency difference between farming groups and family farming, using original plot yield data from a district in Japan. We accomplish this by, first, analyzing the empirical determinants behind the farmers’ choice of participation forms in farming groups based on communities. Second, we verify the presence of free-riding at community-based farming groups which adopts an income-pooling system. Results of the regression analysis showed that for the choice of participation forms in farming groups the most important factor is family labor force. Estimating yield differences between farming group plots and family farming plots shows that farming groups is less efficient due to the incentive problem. Since the core problem of community-based farming groups seems to be the trade-off between efficiency and equity, even if farming groups yield level decreases, the adoption of commission paid according to each plot’s yield is not necessarily desirable. Therefore, a profit distribution mechanism in community-based farming groups should be designed, taking equity issues also into consideration.
AU  - Nakajima, Shinsaku
AU  - Tahara, Kengo
DA  - 2009-06
DA  - 2009-06
DO  - 10.22004/ag.econ.51640
DO  - doi
EP  - 24
EP  - 1
ID  - 51640
KW  - Farm Management
KW  - Institutional and Behavioral Economics
KW  - Land Economics/Use
KW  - Agricultural Collectives
KW  - Tenancy Contract
KW  - Moral Hazard
L1  - https://ageconsearch.umn.edu/record/51640/files/Contributed%20Paper_Reference%20number%20_370__The%20Choice%20of%20Participation%20Forms%20in%20Community-Based%20Group%20Farming%20and%20Production%20in%20Team.pdf
L2  - https://ageconsearch.umn.edu/record/51640/files/Contributed%20Paper_Reference%20number%20_370__The%20Choice%20of%20Participation%20Forms%20in%20Community-Based%20Group%20Farming%20and%20Production%20in%20Team.pdf
L4  - https://ageconsearch.umn.edu/record/51640/files/Contributed%20Paper_Reference%20number%20_370__The%20Choice%20of%20Participation%20Forms%20in%20Community-Based%20Group%20Farming%20and%20Production%20in%20Team.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/51640/files/Contributed%20Paper_Reference%20number%20_370__The%20Choice%20of%20Participation%20Forms%20in%20Community-Based%20Group%20Farming%20and%20Production%20in%20Team.pdf
N2  - Past studies suggest that family farming is more productive than farming groups, but empirical studies are not enough to conclude which is more efficient. This paper tries to econometrically analyze the efficiency difference between farming groups and family farming, using original plot yield data from a district in Japan. We accomplish this by, first, analyzing the empirical determinants behind the farmers’ choice of participation forms in farming groups based on communities. Second, we verify the presence of free-riding at community-based farming groups which adopts an income-pooling system. Results of the regression analysis showed that for the choice of participation forms in farming groups the most important factor is family labor force. Estimating yield differences between farming group plots and family farming plots shows that farming groups is less efficient due to the incentive problem. Since the core problem of community-based farming groups seems to be the trade-off between efficiency and equity, even if farming groups yield level decreases, the adoption of commission paid according to each plot’s yield is not necessarily desirable. Therefore, a profit distribution mechanism in community-based farming groups should be designed, taking equity issues also into consideration.
PY  - 2009-06
PY  - 2009-06
SP  - 1
T1  - The Choice of Participation Forms in Community-Based Group Farming and Efficiency in Team Production
TI  - The Choice of Participation Forms in Community-Based Group Farming and Efficiency in Team Production
UR  - https://ageconsearch.umn.edu/record/51640/files/Contributed%20Paper_Reference%20number%20_370__The%20Choice%20of%20Participation%20Forms%20in%20Community-Based%20Group%20Farming%20and%20Production%20in%20Team.pdf
Y1  - 2009-06
T2  - Contributed Paper
T2  - 370
ER  -