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2010-09-02

Small land holdings and large scale agriculture production

Comments on Sherry Tao Kong, Xin Meng and Dandan Zhang “The impact of the global financial crisis on China’s migrant workers”, 1/09/3010, http://www.eastasiaforum.org/2010/09/01/the-impact-of-the-global-financial-crisis-on-chinas-migrant-workers/
Just a comment on the main point in the following paragraph: “In the long run, small-scale farming will inevitably give way to large landholding and higher agricultural productivity. This will naturally lead to the consolidation of farmland, and many small landholders will need to sell their land. For these workers, then, future employment shocks will have to be cushioned by other means.”

There may be alternatives to just selling their land. For example, some of them may find it more beneficial in holding their land and rent the land to some organisations or persons. In that way, it is still possible to consolidate land holdings for larger scale agricultural production, but allows a diversified ownership, not too dissimilar to share holding in listed firms.

The potential appreciation of some land, especially those likely to be used for other more valuable purposes means some holdings may be good for some small “land holders” to continue to hold their land.

In short, there should be a diversifying and flexible system to provide different options for land holders of different circumstances.

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