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family farming?

Alan Garcia's government continues the policy initiated in the government of Alberto Fujimori, to modernize agriculture based on neolatifundios. According to the minister Agriculture, Adolfo de Cordoba, the fourth stage of Chavimochic require $ 300 million public investment to be gained for export crops 40 000 hectares. As has been in previous stages, the land will be acquired by large investors. The concentration of land ownership continues even through market mechanisms of land. The extreme case is the Gloria Group, owner of the sugar plantations (former cooperatives) Casagrande, Cartavio Sintuco and Chiquitoy, which has recently acquired control of another sugar company, San Jacinto (Nepeña Valley), which amounts to about 55 thousand hectares on the coast. Is Peru's largest landowner.

The main argument that justifies and promotes this concentration is that the large agricultural enterprise is more efficient than medium and small-scale agriculture.

Is it true this argument? Does agricultural enterprises of five hundred thousand or 5 thousand and more acres are more efficient than the 10, 20 or 50 hectares? Are there studies to support this assertion? While in Peru neolatifundismo is consolidating amid a sea of \u200b\u200bsmall-scale agriculture, there is no debate on the subject.

A recent World Bank publication involved in this important discussion on the subject the need to redistribute agricultural land when there is concentration and presents appropriate circumstances. The editor Hans Binswanger, a world authority on the subject and author of several chapters, argues emphatically that "nearly a century of research by agricultural economists across the world has produced a stylized fact contradictory: small-scale farmers usually use the land , labor and capital more efficiently than large farmers, who rely primarily on hired labor. " The author explains the reasons for this apparent paradox, which by extension can not be reproduced in this column. Binswanger

stresses, in contrast, the advantages of family farming. This is characterized in that the owners live on the farm, administer, and are assisted by other family members. He also notes the disadvantages: greater difficulty in access to input markets, products, financing, technical assistance and information. Disadvantages can be counteracted, "she says if small farmers coordinate their efforts, as indicated by the experience, through credit cooperatives and marketing.

Furthermore, in contrast to an agrarian economy based on large estates, the author argues that "increased access to land for farming families can also lead to more vital local economies, more integrated, better living standards and more retail stores.

In other words, family farming is more appropriate for the development of rural areas. There is no doubt that this discussion is highly relevant to Peru.