Farm clustering and consolidation

HIGHLY reputable agricultural economists such as Keijiro Otsuka, Tas Adomopoulus and Diego Restuccia found out in their studies that the main reason why our farms experience low productivity was their fragmentation to minuscule sizes.

The average farm size in the country is around a hectare. It would be extremely difficult for the tiller to earn a decent income from just a hectare of land, particularly if growing low-value crops such as rice, corn and coconut. No matter how many subsidies the government gives to our small farmers, they will remain in the poverty trap.