The Growing Heterogeneity in the Farm Sector and Its Implications

The farm sector has moved from one that was very homogeneous to one with significant differences in size and/or orientation. The decline in the number of “average†sized†farm and the growth in the number of large farms are due primarily to technological innovations that push operations producing commodities to grow as a means of capturing economies of size. The increase in the relative number of small farms is also due partially to technical advances that allow for the production of food goods with the desired quality attributes to be delivered to the appropriate market. This market is continually being differentiated due to demographic and income shifts. The growing heterogeneity in farm structure complicates the assessment and design of farm policy. The social policy objective of improving the livelihood of farmers and their families could be achieved through farm support and extension programs when the sector was homogeneous. The policy objective has shifted toward improving the competitiveness of the sector, but for which of its components? The trend toward greater heterogeneity is likely to continue and thus so will the internal and external support for any policies targeted toward the farm sector.L'on trouve maintenant dans le secteur agricole, anciennement homogA¨ne, des diffA©rences de tailles et d'orientation considA©rables. Le dA©clin du nombre d'exploitations agricoles de tailles moyennes ainsi que la croissance des grandes exploitations surviennent principalement grA¢ce aux innovations technologiques qui poussent la croissance des fermes de productions comme moyen de profiter d′A©conomies de volume. Cette augmentation au nombre relatif de petites fermes est aussi partiellement causA©e par les avancA©es technologiques permettant la production de denrA©es alimentaires comportant les attributs dA©sirA©s de qualitA© pouvant Aatre livrA©s aux marchA©s appropriA©s, ces derniers A©tant continuellement diffA©renciA©s suivant des variations dA©mographiques et de revenus. L'hA©tA©rogA©nA©itA© croissante de la structure agricole complique l′A©valuation et la conception de politiques agricoles. Lorsque le secteur A©tait homogA¨ne, la politique sociale dont l'objectif est l'amA©lioration des moyens de subsistance des fermiers et de leurs familles pouvait Aatre atteinte A l'aide de soutien et de programmes d′A©ducation permanente. L'objectif politique s'est transformA© pour viser l'amA©lioration de la compA©titivitA© du secteur mais pour lesquelles de ses composantes ? La tendance vers une plus grande hA©tA©rogA©nA©itA© risque de se poursuivre tout comme l'appui A l'interne et A l'externe des politiques visant le secteur agricole.