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A smallholding or smallholder is a small farm operating under a small-scale agriculture model. [2] Definitions vary widely for what constitutes a smallholder or small-scale farm, including factors such as size, food production technique or technology, involvement of family in labor and economic impact. [3] There are an estimated 500 million smallholder farms in developing countries of the world alone, supporting almost two billion people. [4] [5] Smallholdings are usually farms supporting a single family with a mixture of cash crops and subsistence farming. As a country becomes more affluent, smallholdings may not be self-sufficient. Still, they may be valued for providing supplemental sustenance, recreation, and general rural lifestyle appreciation (often as hobby farms). As the sustainable food and local food movements grow in affluent countries, some of these smallholdings are gaining increased economic viability in the developed world as well.
Small-scale agriculture is often in tension with industrial agriculture, which finds efficiencies by increasing outputs, monoculture, consolidating land under big agricultural operations, and economies of scale. Certain labor-intensive cash crops, such as cocoa production in Ghana or Côte d'Ivoire, rely heavily on smallholders; globally, as of 2008, 90% of cocoa is grown by smallholders. [6] These farmers rely on cocoa for up to 60 to 90 per cent of their income. [7] Similar trends in supply chains exist in other crops like coffee, palm oil, and bananas. [8] In other markets, small scale agriculture can increase food system investment in small holders improving food security. Today, some companies try to include smallholdings into their value chain, providing seed, feed, or fertilizer to improve production. [9]
Because smallholding farms frequently require less industrial inputs and can be an important way to improve food security and sustainable food systems in less-developed contexts, addressing the productivity and financial sustainability of smallholders is an international development priority and measured by indicator 2.3 of Sustainable Development Goal 2. [10] [3] Additionally, since agriculture has such large impacts on climate change, Project Drawdown described "Sustainable Intensification for Smallholders" an important method for climate change mitigation. [11]
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According to conventional theory, economies of scale allow agricultural productivity, in terms of inputs versus outputs, to rise as the size of the farm rises. Specialization has also been a major factor in increasing agricultural productivity, for example as commodity processing began to move off the farm in the 19th century, farmers could spend more effort on primary food production. [12]
Although numerous studies show that larger farms are more productive than smaller ones, [13] some writers state that whilst conventional farming creates a high output per worker, some small-scale, sustainable, polyculture farmers can produce more food per acre of land. [14]
Small farms have some economic advantages. Farmers support the local economy of their communities. An American study showed that small farms with incomes of $100,000 or less spend almost 95 percent of their farm-related expenses within their local communities. The same study took into comparison the fact that farms with incomes greater than $900,000 spend less than 20 percent of their farm-related expenses in the local economy. [15]
Small-scale agriculture often sells products directly to consumers. Disintermediation gives the farmer the profit that would otherwise go to the wholesaler, the distributor, and the supermarket. About two-thirds of the revenue is expended on product marketing.[ citation needed ] If farmers sell their products directly to consumers, they receive a higher percentage of the retail price, although they will spend more time selling the same amounts of product, which is an opportunity cost.
Because smallholding farms frequently require less industrial inputs and can be an important way to improve food security in less-developed contexts, addressing the productivity and financial sustainability of small holders is an international development priority and measured by indicator 2.3 of Sustainable Development Goal 2. [10] [3] The International Fund for Agricultural Development has an ongoing program for Adaptation for Smallholder Agriculture. [16]
During the global COVID-19 pandemic, and the attendant disruptions of food systems, their role has become more important. [17]
While the historical focus on smallholders has been increasing global food supply under climate change and the role played by smallholder communities, climate adaptation efforts are still hindered by lack of information on how smallholder farmers are experiencing and responding to climate change. There is lack of detailed, context-specific information on what climate change portends to smallholder farmers in different and widely varying agroecological environments and socio-economic realities, and what management strategies they are employing to deal with these impacts. [18] [19]
Especially for smallholders working in commodity crops, climate change introduces an increasing amount of variability to farmer economic viability; for example, coffee production globally is under increased threat, and smallholders in East Africa, such as in the Ugandan, Tanzanian or Kenyan industries, are rapidly losing both viable coffee land and productivity of plants. [20]
In some cases, smallholders are an important source of deforestation. For example, smallholders are an important component of the oil palm industry of Southeast Asia, contributing 40% of the production. Because such farmers are less able to access financing than larger businesses, they are unable to fund methods to increase the productivity of their farms when yields decline, increasing their need to clear more land. [21] Increasing productivity, especially amongst smallholder farms, is an important way to decrease the amount of land needed for farming and slow environmental degradation through processes like deforestation. [11] [21]
The definition of a small farm has varied over time and by country. Agricultural economists have analyzed the distinctions among farm sizes since the field's inception. [22] Traditional agricultural economic theory considered small farms inefficient, a stance that began to be challenged in the 1950s. [23] An overview of research published by the World Bank in 1998 indicated that the productivity of small farms often exceeded that of larger ones. [24]
A croft is a traditional Scottish term for a fenced or enclosed area of land, usually small and arable, and usually, but not always, with a crofter's dwelling thereon. A crofter is one who has tenure and use of the land, typically as a tenant farmer, especially in rural areas.
In Northern England, crofter was a term connected with tenant farming and rural employment. For example in the textiles industry; someone who bleached cloth prior to dyeing, laying it out in fields or 'crofts'. [25] [26] [27]Smallholder farms, also known as small-scale farms, encompass a diverse array of agricultural operations, varying from those owning the land they cultivate to those who do not. [28] These farmers, often family-oriented, rely significantly on family labor to meet production needs, with women contributing a substantial portion of farm labor. [29]
The agricultural work on smallholder farms predominantly involves family members, with occasional hired labor, particularly during peak seasons. [29] However, the productivity per hectare tends to increase with higher involvement of family members in farm activities. [29] In addition to farm-related duties, women on smallholder farms often shoulder responsibilities such as collecting fuel and water and engaging in low-value, small-scale trading activities. [29]
Many smallholder farms supplement their income through off-farm work, crucial for sustaining livelihoods, particularly during agricultural downturns like droughts. [29] Engaging in off-farm employment also serves to build social capital and resilience within these communities. [29] Having multiple sources of income or employment opportunities off the farm contributes to the economic stability of smallholder farming households. These off-farm income-generating activities offer a buffer against agricultural shocks and allow for a diversified livelihood strategy, providing families with increased financial security and access to essential resources.
In many developing countries, smallholding is a small plot of land with low rental value, used to grow crops. [30] By some estimates, there are 525 million smallholder farmers in the world. [31] These farms vary in land sizes, production and labor intensities. [32] The distribution of farm sizes depends on a number of agroecological and demographic conditions, as well as on economic and technological factors. [33] Smallholders are critical to local and regional food systems, as well as livelihoods, and especially so during periods of food supply chain disruptions. [34] Smallholders dominate production in certain key sectors such as coffee and cocoa. Various types of agribusinesses enterprises work with smallholding farmers in a range of roles including buying crops, providing seed, and acting as financial institutions. [35]
In low-income countries, women make up 43 percent of smallholding agricultural labor but produce 60–80 percent of food crops. [11]
In India, there is five sizes classification for smallholders. These are 'marginal' less than 1 hectare (2+1⁄2 acres), 'small' between 1 and 2 hectares (2+1⁄2 and 5 acres), 'semi medium' between 2 and 4 hectares (5 and 10 acres), 'medium' between 4 and 10 hectares (9.9 and 24.7 acres), 'large' above 10 hectares (25 acres). If we use 4 hectares (10 acres) (marginal + small + medium) as a threshold, 94.3% of holdings are small and these constitute 65.2% of all farmland. [5] The bulk of India's hungry and poor people are constituted of smallholder farmers and landless people. 78% country's farmers own less than 2 hectares (5 acres), which constitutes 33% of total farmland but at the same time, they produce 41% of the country's food grains. 20% of the world's poor live in India, although the country was self-sufficient in food production in 2002 due to the first Green Revolution started in the latter half of the twentieth century, numerous households lacked resources to purchase food. Holdings less than 2 ha contributed 41% of total food grain production in 1991 compared to 28% in 1971, which means a substantial increase, whereas medium holdings registered a mere 3% increase in the same period and large holdings registered a decline from 51 to 35%. This signifies the importance of smallholders in the Green Revolution and the attainment of national food security. Smallholder families are becoming more vulnerable and more disadvantaged due to the expansion of international trade liberalisation. The needs and aspirations of small farmers must feature prominently in policies of market reform that seek to improve food and nutritional security. India's total increase rate of productivity across the farming sector was far less in 1990's when compared to previous decades. [36]
Kenya's smallholder means someone who owns, possess or produces agricultural products in small-scale . smallholder production accounts for 78 percent of total agricultural production and 70 percent of commercial production. [37] Majority of the smallholder population work in farm sizes averaging 0.47 hectares (11⁄4 acres). [38] This represents the vast majority of Kenya's rural poor population who depend on agriculture for their livelihood. [39] Adverse risk events during the period 1980–2012 led to production losses in smallholder farms resulting in a drop in agricultural gross domestic product (GDP) of 2 percent or more. [39] Increasing the productivity of smallholder farmers is encouraged due to its potential of improving food availability, increasing rural incomes, lowering poverty rates, and growing the economy. [39] Diversification of crops in smallholder farms is one of the potential strategies in sustaining agricultural productivity, and copping with marketing risks. [40] It is also a transitional step from subsistence to commercial agriculture.[ citation needed ] Age, education of household head, type of crops, cropping system, amount of credit, and irrigation facilities are some of the factors influencing diversification in smallholder farms. [41]
Along the upper and middle reaches of the Nduruma River in the Pangani River Basin, Tanzania, there is not enough water to go around. Smallholder farmers address inequities in land and water distribution by enforcing existing traditional local rules. Whilst larger estate farms may have governmental licences guaranteeing rights to the water, a study found that those large-scale farms which adhere to the traditional water rights structures fare better in terms of social reputation, which better ensures their access to water. Adhering to the water law in order to enforce their permits is less effective, as regional Tanzanian local governments generally attempt to avoid conflict with their populace. On a larger scale, however, existing traditional rules are ineffective in maintaining cooperation among users along the Nduruma River. [42]
In 1975, there were 4.2 million smallholder farming households in Thailand. In 2013, Thailand had 5.9 million smallholder farming households. The average area of these smallholdings had shrunk from 3.7 to 3.2 hectares (9+1⁄4 to 8 acres) over that period. Instead of farms getting larger and less numerous, as has been the case in the Global North, the reverse happened: they got smaller and more numerous. [43]
Several definitions of small farm have been formulated in legislation. In 1977 the US Congress, via the Food and Agriculture Act of 1977, defined a small farm as one with sales under $20,000. [44] At the time these comprised 70% of farms in the US. [22] The Act sponsored additional research on small farming operations by US land grant universities and their extension services and mandated that an annual report on these activities be issued by the US Secretary of Agriculture. [22] A 1997 study by the United States Small Farms Commission defined small farms as those with less than $250,000 in gross receipts annually on which day-to-day labor and management are provided by the farmer and/or the farm family that owns the production, or owns or leases the productive assets. In 2000, such farms accounted for about 90% of the more than 2.1 million U.S. farms, but only about 40% of U.S. farm production.
The concentration of production on fewer and larger operations is a longstanding concern among some segments of the agricultural community. Others view these changes as inevitable, and even necessary to maintain the efficiency and competitiveness of the sector.
Farm typology analysis by the USDA Economic Research Service divides the small family farm category into five groups:
Many farmers are upset by their inability to fix the new types of high-tech farm equipment. [45] This is due mostly to companies using intellectual property law to prevent farmers from having the legal right to fix their equipment (or gain access to the information to allow them to do it). [46] This has encouraged groups such as Open Source Ecology and Farm Hack to begin to make open-source agricultural machinery.
The debate concerning the role of small farms within the European Union is ongoing. The European Commission states that more than three-quarters of farm holdings in the European Union are less than 10 hectares, with a large number less than five hectares,. [47] However as of 2009 [update] it had not established a formal definition of the term that could be used in its Common Agricultural Policy. The public perception of the possible benefits of small-scale farming has led to requests for further studies from the European Commission. [48]
Agriculture encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to live in the cities. While humans started gathering grains at least 105,000 years ago, nascent farmers only began planting them around 11,500 years ago. Sheep, goats, pigs, and cattle were domesticated around 10,000 years ago. Plants were independently cultivated in at least 11 regions of the world. In the 20th century, industrial agriculture based on large-scale monocultures came to dominate agricultural output.
A farm is an area of land that is devoted primarily to agricultural processes with the primary objective of producing food and other crops; it is the basic facility in food production. The name is used for specialized units such as arable farms, vegetable farms, fruit farms, dairy, pig and poultry farms, and land used for the production of natural fiber, biofuel, and other commodities. It includes ranches, feedlots, orchards, plantations and estates, smallholdings, and hobby farms, and includes the farmhouse and agricultural buildings as well as the land. In modern times, the term has been extended so as to include such industrial operations as wind farms and fish farms, both of which can operate on land or at sea.
Agricultural productivity is measured as the ratio of agricultural outputs to inputs. While individual products are usually measured by weight, which is known as crop yield, varying products make measuring overall agricultural output difficult. Therefore, agricultural productivity is usually measured as the market value of the final output. This productivity can be compared to many different types of inputs such as labour or land. Such comparisons are called partial measures of productivity.
Sustainable agriculture is farming in sustainable ways meeting society's present food and textile needs, without compromising the ability for current or future generations to meet their needs. It can be based on an understanding of ecosystem services. There are many methods to increase the sustainability of agriculture. When developing agriculture within sustainable food systems, it is important to develop flexible business processes and farming practices. Agriculture has an enormous environmental footprint, playing a significant role in causing climate change, water scarcity, water pollution, land degradation, deforestation and other processes; it is simultaneously causing environmental changes and being impacted by these changes. Sustainable agriculture consists of environment friendly methods of farming that allow the production of crops or livestock without causing damage to human or natural systems. It involves preventing adverse effects on soil, water, biodiversity, and surrounding or downstream resources, as well as to those working or living on the farm or in neighboring areas. Elements of sustainable agriculture can include permaculture, agroforestry, mixed farming, multiple cropping, and crop rotation.
Subsistence agriculture occurs when farmers grow crops on smallholdings to meet the needs of themselves and their families. Subsistence agriculturalists target farm output for survival and for mostly local requirements. Planting decisions occur principally with an eye toward what the family will need during the coming year, and only secondarily toward market prices. Tony Waters, a professor of sociology, defines "subsistence peasants" as "people who grow what they eat, build their own houses, and live without regularly making purchases in the marketplace".
A hobby farm is a smallholding or small farm that is maintained without expectation of being a primary source of income. Some are held simply to bring homeowners closer to nature, to provide recreational land for horses, or as working farms for secondary income.
Agriculture is a major sector of the Nigerian economy, accounting for up to 35% of total employment in 2020. According to the FAO, agriculture remains the foundation of the Nigerian economy, providing livelihood for most Nigerians and generating millions of jobs. Along with crude oil, Nigeria relies on the agricultural products it exports to generate most of its national revenue. The agricultural sector in Nigeria comprises four sub-sectors: crop production, livestock, forestry, and fishing.
The history of agriculture in India dates back to the Neolithic period. India ranks second worldwide in farm outputs. As per the Indian economic survey 2020 -21, agriculture employed more than 50% of the Indian workforce and contributed 20.2% to the country's GDP.
The main economic products of Malawi are tobacco, tea, cotton, groundnuts, sugar and coffee. These have been among the main cash crops for the last century, but tobacco has become increasingly predominant in the last quarter-century, with a production in 2011 of 175,000 tonnes. Over the last century, tea and groundnuts have increased in relative importance while cotton has decreased. The main food crops are maize, cassava, sweet potatoes, sorghum, bananas, rice, and Irish potatoes and cattle, sheep and goats are raised. The main industries deal with agricultural processing of tobacco, tea and sugar and timber products. The industrial production growth rate is estimated at 10% (2009).
Agriculture in Ghana consists of a variety of agricultural products and is an established economic sector, providing employment on a formal and informal basis. It is represented by the Ministry of Food and Agriculture. Ghana produces a variety of crops in various climatic zones which range from dry savanna to wet forest which run in east–west bands across Ghana. Agricultural crops, including yams, grains, cocoa, oil palms, kola nuts, and timber, form the base of agriculture in Ghana's economy. In 2013 agriculture employed 53.6% of the total labor force in Ghana.
Angola is a potentially rich agricultural country, with fertile soils, a favourable climate, and about 57.4 million ha of agricultural land, including more than 5.0 million ha of arable land. Before independence from Portugal in 1975, Angola had a flourishing tradition of family-based farming and was self-sufficient in all major food crops except wheat. The country exported coffee and maize, as well as crops such as sisal, bananas, tobacco and cassava. By the 1990s Angola produced less than 1% the volume of coffee it had produced in the early 1970s, while production of cotton, tobacco and sugar cane had ceased almost entirely. Poor global market prices and lack of investment have severely limited the sector since independence.
Agriculture employs the majority of Madagascar's population. Mainly involving smallholders, agriculture has seen different levels of state organisation, shifting from state control to a liberalized sector.
Agriculture in the United Kingdom uses 70% of the country's land area, employs 1% of its workforce and contributes 0.5% of its gross value added. The UK currently produces about 54% of its domestic food consumption.
Gender roles in agriculture are a frequent subject of study by sociologists and farm economists. Historians also study them, as they are important in understanding the social structure of agrarian, and even industrial, societies. Agriculture provides many job opportunities and livelihoods around the world. It can also reflect gender inequality and uneven distribution of resources and privileges among gender.
Agroecology is an applied science that involves the adaptation of ecological concepts to the structure, performance, and management of sustainable agroecosystems. In Latin America, agroecological practices have a long history and vary between regions but share three main approaches or levels: plot scale, farm scale, and food system scale. Agroecology in Latin American countries can be used as a tool for providing both ecological, economic, and social benefits to the communities that practice it, as well as maintaining high biodiversity and providing refuges for flora and fauna in these countries. Due to its broad scope and versatility, it is often referred to as "a science, a movement, a practice."
The Committee on Sustainability Assessment (COSA) is a global consortium of development institutions that work collaboratively to advance sustainability learning with systematic and science-based measurement. COSA applies a pragmatic and collective approach for using scientific methods to develop indicators, tools, and technologies to measure the distinct social, environmental, and economic impacts and are applied in performance monitoring, evaluation, return on investment (ROI) calculation, and impact assessment. COSA has a public mission to open its scientific methods and metrics up to widespread use.
Mozambique has a variety of regional cropping patterns; agro-climatic zones range from arid and semi-arid to the sub-humid zones to the humid highlands. The most fertile areas are in the northern and central provinces, which have high agro-ecological potential and generally produce agricultural surpluses. Southern provinces have poorer soils and scarce rainfall, and are subject to recurrent droughts and floods.
Ghana'sMinistry of Food and Agriculture (MOFA) is the government agency responsible for the development and growth of agriculture in the country. The jurisdiction does not cover the cocoa, coffee, or forestry sectors. The primary organisation and main area of the presidential administration of Ghana is the nation's Ministry of Food and Agriculture (MOFA), which is in charge of creating and carrying out policies and plans for the agricultural sector within the framework of an efficient national socio-economic development and prosperity agenda. The Ministry's plans and programmes are created, coordinated, and put into effect using frameworks for policy and strategy using a sector-wide approach. The Food and Agriculture Sector Development Policy II and the Medium Term Agriculture Sector Investment Plan were both developed with the aid of MOFA in relation to this.
Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers. Sometimes it involves the buyer specifying the quality required and the price, with the farmer agreeing to deliver at a future date. More commonly, however, contracts outline conditions for the production of farm products and for their delivery to the buyer's premises. The farmer undertakes to supply agreed quantities of a crop or livestock product, based on the quality standards and delivery requirements of the purchaser. In return, the buyer, usually a company, agrees to buy the product, often at a price that is established in advance. The company often also agrees to support the farmer through, e.g., supplying inputs, assisting with land preparation, providing production advice and transporting produce to its premises. The term "outgrower scheme" is sometimes used synonymously with contract farming, most commonly in Eastern and Southern Africa. Contract farming can be used for many agricultural products, although in developing countries it is less common for staple crops such as rice and maize.
A number of movements seek to expand the practice of agroecology in West Africa. Agroecology is a scientific discipline, movement and practice that integrates ecology in agriculture with strong emphasis on diversification, food sovereignty, energy efficiency and sustainability. Agroecological practices apply the systems and knowledge that traditional farmers in the region have developed and inherited. The agroecological social movement empowers smallholder farmers that hold the knowledge of indigenous farming systems, however are recently engulfed by larger farms or are migrating to urban areas, looking for better paying jobs.
This article incorporates public domain material from Jasper Womach. Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition (PDF). Congressional Research Service.