Question

Some individuals decry the decline of the small family farm and its replacement with the huge corporate megafarm. Discuss the possibility that this is a consequence of economies of scale.

Answer 1

Some individuals decry the decline of the small household farm and its replacement with the huge business megafarm because of the fact that the latter is known to be having an edge over the previous and enjoying the cost-benefit due to economies of scale. This can be understood even more by comprehending the history of farming over the world. Just little farms utilized to exist and run without modern-day strategies and farming technology. To increase the size of the farm and the production, in other words, the scale, the cost to be sustained used to be directly proportional to the growth planned. With the changing times, modern farming types of equipment were introduced. These farming kinds of equipment could be used only in big farms and would yield to big production, the rate of which would be much higher than the rate of increase in the cost. Therefore people who might pay for big farms began getting a higher advantage due to such mechanized farming. These farmers were able to sell the fruit and vegetables in greater quantity and lower costs as compared to those who owned small farms and earn huge earnings. This tempted corporate houses to take a look at farming as a profitable company and they began to own megafarms. Due to the above, there are many people who protest the business megafarms so that the little scale farmers whose only income id farming can be protected in the competition.