Explain the agency problem associated with large scale agric

Explain the “agency problem” associated with large scale agriculture. Many studies have found that within a country there exists a negative relationship between farm size and productivity. To what extent does the agency problem in agriculture play a role in generating this pattern? Explain.

Solution

Large scale agricultural investmets by various actors in sub- saharan Africa have dramatically inreased in the past decade, challenging rural livelihoods among small scale farmers. These organise in varying contexts, scale and production systems, including collaborations between small scale producers and large sclae plantation based investments that position the former into contract farmers. one distinctive feature of concern among development actors is that LaSAIs often coincides with poor governance systems, unclear property rights.