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المستخلص THE EFFECT OF FARM’S HOLDING SIZE ON THE AGRICULTURAL PRODUCTIVITY IN YEMEN ARAB REPUBLIC SUMMARY AND RECOMMENDATIONS The agricultural sector is a very important and economic sector in Arab Republic of Yemen, due to its contribution to the national income. Moreover, it is considered the only source of living to more than 90% of the population. ’It holds more than 73% of the labor force,because agriculture was and still the base on which Yemen Society development stands. This st udy includes 5 chapte-rssubse_quent. t’? the int roduct ion which includes a review 0 f the p’rohlem,:”the goals of the study and the methodology and a reView of the’ literature. The following is a review of which is included in these chapters and the resul~s obtained. Chapter I was didicated to be a descriptive study of Yemen agricultural sector. Therefore, the study was concerned with recognition of the natural agricultural regions in Arab Republic of Yemen i.e., their agricultural Possibilities in respect to land, water, manpower, in addition to type of investment and constrains of the agricultural production. It was noticed from the study that about 84% of the cultivated ’area which is equal to 1.515 million hectares depends upon rainfall. Most of t hr s area lies in Sanaa AS and Taiez governorates,’ respectively. The remainder of the cultivated area which is equal to 16% depends upon the other sources of irrigation water since about 7.9% of the cultivated area is irrigated by floods and flowages and lies in Hodaieda governorate. About 4.8% is irrigated with steady irrigation system with water flows out of springs and wells. Most of this land lies in Sanaa, AS and Taiez governorates. respectively. About 3 .3% is irrigated wi th water drawn out of springs by pumps and other water pumping means. Most of this land lies in Hodaieda governorate. Due to minority af the cultivated area which is irrigated with e1ther steady 0 r spring i.rrigation system; the major part of ”the cultivated area,depends u~on the irrigular rainfall.·· Therefo re, the a9 ricul tural production is affected w~th the rainfall cytle, which is sharp in addition to some other constrains which limit its development. Amongst these constrains_and the most significant factors are: 1. Lack of agricult~ral researches. 2. Lack of agricultural production requirements. 3. Lack of agricultural labor force and in turn its increased wages .• 4. Absence of lesi~lations which regulate the agricultural production relationships between owners and tenants. 5. Increasing area cultivated with (Katt) on the expense of other crops. - 3 - 6. The previously mentioned situations with their negative effects weakened crops productivity and constrained the developmental process of the agricultural sector. Chapter II includes an analytical study of the property structure of the cultivated area in Yemen. Some defects were reflected by property division and the system adopted to distribute the limited culti~able area between ~any producing uriits (farms) which vary in their capacities ’and number of plots included in each farm. They also vary in systems by. which they are possessed and methods with which they are run. These methods vary according to their advantages and characteristics which affect the productivity of the farms. The study - in this chapter - was concentrated on recognition the nature of variance in agricultural property in Yemen, as a whole, and in the tribal system specially. The analysis was concerned with system of agricultural property and possessing in Arab Republic of Yemen before and after Islam < up to now, as well as agricultural relationships between them in respect to their advantages, char~~~r.j”s-tiCSand significance. The analysis was concerned also with causes of property division and distribution of cultivated area in Yemen. ~s well as the. frequency, fair distribution of property and constitution of agricultural property structure. - 4 - Chapter III has analyzed characteristics of sample farms. A random sample of owners in AS governorate of Arab Republic of Yemen was drown. The analysis took two ways: 1. Recognision the capacity of the property i.e, size of agricultural property in area of research i.e. AS’ governorate and how fair the distribution ~s~ _ 2. Recognision of the most significant cha r-act er-Le t Lcs of the agricultural units in th~ sample with respect of average yield and average cost of production per hectare in regard with different sizes of different ~roperties, percentages of production elements and their services, effect of agricultural propertY’~~ze as an appea ranee of property division - on production potentiality, net income, total reserve, and the added value per hectare for the most important crops under consideration i.e. sorghum. corn, EIghareb and potatoes. The study revealed that the agricultural possessing frequency of AS governorate is characterized by its narrow farm capacities and multiplicity of st-unted, minor and .ama Ll, farms which - as a whole - are less than 5 hectares. , According -to data of”agricultural sencus in 1983, number of owners who possess these farms reached about 116.790 thousands, of about 99.1% of the total number of,the owners which is - 5 - 111.787 thousands in a governorate lies on 91.121 thousand hectares, which represent 89.1% of the total area which is 102.269 thousand hectares with the average of 0.78 hectare. The number of owners who possess medium farms which range between 5 to less than 20 hectares is 997 which represents 0.9% and occupies 11.148 thousand hectares which is 10.9%; which is the remainder percentage since the governorate does not include any big farms which range between 20 or more hectares. Gini coefficient i.e. equality indicato r i.and J;;.orenz curve were used to declare the equality limits ~n distribution of the cultivated area in AS governorate, according to data ofthe agricultural sencus in 1983. Comparing the value of Gini coefficient which was 0.46 with that of Yemen Republic which was 0.56. It is clear that concentration percentage in the different property groups within the governorate is less than that at the level of the Republic which means that distribution of the cultivated”area in AS governorate is much closer to the equality system ,than at the level of the Republic. These results are in agreement with those of Lorenz curve which , declare that the curve representing the actual-~istribution of the agricultural area in AS governorate is much closer to the complete equality line - ’which represents the actual distribution of properties than that line which represents the actual distribution of the cultivated area at the level - 6 - of the Republic. It is clear that when the area which lies between equality line (chord of Lorenz square) and the line which indicates property distribution per owners - within the different groups under consideration - increases, the equality in property distribution decreases anq vice versa. i.e. when this area decreases the equality in property distribution increases. This area is known by inequality zone. Searching the agricultural production potent~ality in the research sample which represents-a standard utilization for measuring the potentiality of producing resources to produce cultivation - by measuring the average·yield ’i.e. the physical production of th~ available agricultural resources, it was clear that the average yield of sorghum and corn was arranged in assending order according to property size group i.e. the second, first and third group, respectively, ,since the second group is the least one (3 hectares or more). Regarding the yield of Elghared, the average yield per hectare reached the least value in the first property group and the highest value in both second and third group, then decreased in the fourth group. Regarding the yield of potatoes, the average yield per hectar~ reached ~he highest value in the first property group, which could be attributed to the special care reqUired to that crop which farmers in larger size properties could rio~ offer. - 7 - Reviewing the average costs of production per hectare for crops adopted in this study, it is clear that the average cost of productio’n p~r hectare for b~th sorghum and corn decreases as the property size increases which verifies the advantages of large size properties. Regarding yield of both Elghareb and potatoes, it is clear that the average cost of production per hectare decreases as the·property size increases, with respect to the first,.second and third groups, re~pectively. On the other hand, the average cost of production in the fourth group (3 hectares or more) starts to inqrease as the property size decreases. Estimat~ng the relative costs of agricultural prodOcing elements, i.e. land, ’laborand capital f o.rsorghum, corn, Elghareb and potatoes - according to the production capacity of the research sample, it is clear that ratio of laborcontribution is the highest compared to that of the three other crops (sorghum, corn and Elghareb). The labor contribution reached about 58.36, 61.71 and 53.4~ respectively. The Gnly exception is potatoes, as labor contribution was about 25.83% followed by land element with regard to sorghum, Elghareb and corn since their contributions were 26.46, 25.75 and 28.35% respectively. excepting for potatoes, -.I ~ - since the land contribution was 30.281. The capital contribution comes in the third rank, regarding sorghum, ------- - 8 - Elghareb and corn since it was about 15.18, 12.54 and 18.16% respectively, except for potatoes, since it was about 43.89%. In order to achieve the goals of this study, it was necessary that this chapter should emphasis on counting some of measurements in respect to production potentiality of the farms. under considera. tion in this study according to their Qutcome and property size. The production potentiality measurements are considered significant means of economical analysis with which it could be possible to judge the range of income which the cultivated unit could achieve. The three main measurements which were used to measure the production potentiality were: 1. Net outcome of the farm, which expresses the outcome of any ’crop after subtracting ’the total farming costs of the agricultural elements ~hich contributed in its production. 2. The net outcome per t,he invested capital which expresses the capital outcome. 3. Measurements of the added value which is the yield of subtracting the value of production, requirements i.e., goods and services - which were purchased from other producing units - from the value of production.. This measurement expresses the total farming outcomes which were obtained by production elements as a result of their participation in production process of every crop. - 9 - Comparing the results of calculating these measurements by using sampling data within each property group for crops under consideration, it was shown that: a. Regarding the first property group - less than 0.5 hectare; it was indicated that potatoes had the highest net farming outcome, followed by sorghum, corn and Elghareb. The highest net outcome per invested capital was that of ~ighareb, followed by potatoes, sorghum and corn. The added value estimated with Yemen Ryal per hectare reached the highest level in potatoes, followed by sorghum, corn and Elghareb. b. Regarding the second property group -0.5 to less than 1.5 hectares, it was indicated that potatoes had the highest net farming outcome per hectare estimated with Yemen Ryal, followed by sorghum, Elgha reb and -co-r:n~1he_.~”””i..ghensett outcome per invested capital was achieved by Elghareb, f.ollowed by sorghum, potatoes and corn, it is worthy to mention that the three latter crops were equal in this respect. Potatoes had the highest added value followed by sorghum, corn and Elghareb. c. Regarding the third property group 1.5 to less than 3 hectares. Potatoes had the highest net outcome .per hecta reest imated in ¥emen ’Ryal, followed b yE.lgha reb , corn . . and sorghum. Elghareb had the highest net outcome per .__ I~’ ~ __ . . .• 10 invested capital followed by corn. potatoes and sorghum. Potatoes had the highest added value followed by sorghum and Elghareb. respectively. d. Concerning the fourth proper~y group - 3 hectares or more. potatoes had the highest net farming ou’tcome per hectare estimated in Yemen Ryal followed by sorghum. corn and Elghareb. Corn had the highest net outcome per capital followed by sorghum.· Elghareb and pot at oes, Potatoes had the highest added value followed by sorghum. corn and Elghareb. from the previously mentioned results. it was clear that potatoes had the highest net farming outcome per .hectare estimated in Yemen Ryal in all the pr..:p~ryt groups. It was also clear that .pot at oee had the highest added value per hectare estimated in Yemen Ryal followed by Sorghum. corn. and Elghareb. respectively. in all the property groups. Elghareb had the highest net outcome per invested capital in the first three property groups. whereas. corn. had -~he highest value in the fourth group. Chapter IV was concerned with economics of the sample farms. Regression analysi5 was used to compare between the different levels of ec6nomical productive potentiality in respect of using the productive resources in farms of different sizes in order to recognize the variation in ratioes (input - output) ’among the different farm sizes on .__.- ._---- -------- - 11 - tha basis that the production is the indicator of farm capacity. Also, analysis of variance or the pos-s-ible difference between farms with regard to agricultural productivity and the average of agricultural costs to test the hypothesis that there were no real differences between the different property groups for the productive farms which produce the crops involved through the sample which was drawn from AS governorate with r-espect to the average production per hectare and the average productioh costs of these crops, and vcons e que nr Ly-, recognition .o f ”the signi ficance of these differences if they were present by using the least significant difference i.e (L.S.O.). Regression analysis did not show any relationship between the :average production per hectare and capacity i.e. size of agricultural property with respect to all main crops in the research sample i.e. sorghum, corn, Elghareb and potatoes. This was shown from the following results: 1. t-test did not show any significant differences between r:egression treatments of these crops at certainty level of 5%. 2. F-test did not show any signifi~ant differences between regression treatments of these crops at certainty level of 5%~ - 12 - 3. Correlation coefficient between the two variables was insignificant at certainty level of 5%. 4. Determination coefficient which interpretates the responsibility of increasing capacity i.e size of agricultural property to increase the average production per hectare was very low, so the differences could be due to other factors rather than farm size factor. Analysis of variance also, did not show any relati,onship between average production and size i.e., agricultural property size with respect to the different crops adopted in thiS study i.e., sorghum, corn. Elghareb and potatoes. It was evident from the direct comparisons between the calculated F-value - according to sample data - and the tabulated F value at the certainty level of 0.05. The tabulated F value was higher than its calculated value. This conclusion ascertain the previous result i.e., no relationship between the variablesunper consideration. That means absence of economic farm size phenomena in the presence agricultural productive systems used nowadays, in one side, and sizes i.e prevailing stunted, minor and small agricultural properti.es. in the other side • So it could be said that the present farming siZes in AS governorate significantly do not affect theproduction of crops under consideraton, under the present agricultural producing systems. .._ .._ ... _. --------------- - 13 - Regarding the relationship between the average production costs per hectare, on one side, and size i.e., costs per’hectare for sorghum. corn and Elghareb within property sizes i.e there were significant differences due to effect of agricultural property sizes on production costs per hectare for the three crops previously mentioned. Whereas, no significant differences between the effect of sizes i.e agricultural property sizes.on production costs of potatoes., It means that average of total’ prbduction costs of potatoes is similar in all property sizes from • and that differences between them are due merely to chance. That was evident from ·the direct campa rison -between calculated F value and its tabulated value at certainty level of 5%. The differences were highly significant with regard to sorghum - between average of the first and the fourth property sizes and significant between average of the first and third property sizes and between av~ge of second and fourth property sizes. R.garding both Elghareb and corn. ·differences were significant between averages of second and fourth property groups and averages of second and third property groups. It was eVident that |