Speaker
Description
Keywords: Farm workers, Rural employment, Decent work, Employment quality and quantity, Sub-Saharan Africa, Horticulture.
Introduction
The role of farm size in promoting poverty reduction and economic growth remains a contentious debate in agricultural and development economics as well as in the general public (Dercon & Gollin, 2014; Staatz & Dembele, 2007; Wiggins et al., 2010). So far, empirical evidence informing this long-standing debate has focused on the relationship between farm size and productivity (Barrett, 1996; Rada & Fuglie, 2019) and farm size and environmental performance (Ren et al., 2019; Wuepper et al., 2020). Employment has been largely overlooked in this literature and debate, although many lower-income regions experience both massive unemployment challenges and changes in farm sizes. In Sub-Saharan African countries, farm sizes are often decreasing (Lowder et al., 2021), while, at the same time, medium-sized farms and large-scale land acquisitions are proliferating (Anseeuw et al., 2016; Jayne et al., 2022). The agricultural sector provides many but not sufficient jobs for the growing population, and working conditions are often precarious (Christiaensen et al., 2021; Christiaensen & Maertens, 2022). Whether and how the sector can offer more and better jobs is an emerging question that receives increasing attention among policymakers and researchers (Nattrass & Seekings, 2018), while the role of farm size has hardly received attention (Muyanga & Jayne, 2019).
Here, we address this gap by offering novel evidence on links between farm size and employment. We analyze whether farm size matters for the quantity and quality (working conditions and decency) of jobs and whether a trade-off exists between the two, which has never been studied before. Further, we explore why small and larger farms might differ in terms of the quality and quantity of jobs offered, considering distinguishing factors like technology use, market access, and crop specialization. We focus on local rather than global supply chains, which have received little attention in the agri-food labor literature (Maertens, 2019; Meemken et al., 2019). Our leading hypothesis is that there is a trade-off between job quality and quantity, with smaller farms offering more jobs (per ha) and larger farms providing better jobs.
Data and methods
We focus on a uniquely suited case study, Nigera’s growing tomato sector, known for its labor-intensive nature. We use primary data from a matched farm-to-worker survey, which is the exception in this literature. Job quantity is measured in terms of the number of workers hired and labor days per hectare (ha) cultivated. With regard to job quality, we consider wage (Naira/hour) and non-wage dimensions of jobs. The primary explanatory variable of interest in this study is farm size, measured as the total area of land cultivated (ha) as reported by the farmers. In the analysis, we employ multivariate ordinary least squares regression analysis to assess the association between farm size and job quality and quantity. Consequently, our results are not causal, just as the vast majority of papers on the relationship between farm size and productivity, as farm sizes are hard to randomize. Nevertheless, our results document novel interlinkages between farm size and employment.
Results and discussion
We find that farm size matters for job quality and quantity. Smaller farms are associated with offering more jobs, while larger farms offer better jobs. There is generally a trade-off between job quality (especially wages) and quantity, also beyond farm size. We find that offering more jobs is associated with farms offering lower wages. This implies that farms make a trade-off between providing more jobs and offering higher wages. Our findings align with our hypotheses and with some of the mixed and limited previous empirical evidence (e.g., Ehlert et al., 2014). Further analysis suggests that technology use and level of crop specialization explain a modest share of the inverse farm size-job quantity relationship.
Our results highlight that Nigeria’s tomato sector provides important rural job opportunities. However, they often do not meet several decent work criteria, which is a challenge globally in agri-food systems (Ehlert et al., 2014; Fabry et al., 2022). Employment is primarily generated for seasonal workers, who are mostly migrants, possibly benefitting households and communities in migrant-sending regions (Mckenzie, 2022; Yang, 2008). Relatedly, almost all migrant workers are men. Thus, context matters for the composition of workers, as other studies find that the horticultural sectors, e.g., Senegal and Peru, hire many local women (Maertens & Swinnen, 2012).
Conclusion
The creation of decent employment in agri-food systems is crucial for economic development (Christiaensen et al., 2021). Although farm sizes are changing globally, the role of farm size for the quality and quantity of employment has hardly received attention, despite the generally increasing interest in the role of farm sizes for economic development. We contribute to scientific and public debates on the role of farm size for rural economic growth by investigating the association between farm size and job quantity and quality, as well as the trade-offs thereof. We use unique matched (farm-to-worker) survey data from Nigeria’s tomato sector, focusing only on farms that hire workers, the vast majority of whom are lower-skilled. Our results suggest that farm size is inversely associated with job quantity, meaning smaller farms offer more jobs per cultivated land area (ha). In contrast, farm size is positively associated with job quality, although job quality is generally precarious, irrespective of farm size.
As discussed above, our results are not causal, just as the vast majority of the farm size-productivity literature. This problem is challenging to solve as both farm sizes and employment are difficult to randomize. Panel data would only present progress in this regard if farm sizes are expected to change. Future research could pursue such approaches, e.g., collecting panel data or leveraging planned land reforms. Beyond causality, future research could also explore why so few local workers, particularly women, are willing to accept farm jobs. All in all, our findings highlight an important, but often under-appreciated fact in the farm size debate: Neither small nor large farms deliver on all aspects of sustainable development. Trade-offs exist.
