Is Larger Scale Better? Evidence from Rice Farming in Jianghan Plain

Abstract

Abstract: Small-scale household agricultural production has been in conflict with China's agricultural modernization. In the context of vigorously promoting rural land circulation and moderate scale management nationwide, research on the relationship between farm size and scale efficiency has become increasingly important. In this paper, we use the “DEA-OLS” two stage method to analyze data from 368 surveys of rice farming households in the Jianghan Plain. The scale efficiency of rice farming was calculated, and the relationship between farm size and scale efficiency investigated. The results indicate that (1) the rice farm size is generally small in Jianghan Plain, with an average of 0.77 ha. The average scale efficiency is 0.88, and it is the main factor limiting an increase in comprehensive technical efficiency. Moreover, 88.32% of households are in the stage of increasing returns to scale. (2) There is a stable inverted “U” type relationship between rice farm size and scale efficiency. Considering cha...