International Journal of Social Science Studies Vol. 2, No. 3; July 2014 ISSN 2324-8033 E-ISSN 2324-8041 Published by Redfame Publishing URL: http://ijsss.redfame.com 123 Small Farms and Agricultural Productivity-A Macro Analysis R. G. Kadapatti 1 & S. T. Bagalkoti 2 1 Research Scholar, Department of Studies in Economics, Karnatak University, Dharwad, India 2 Faculty, Department of Studies in Economics, Karnatak University, Dharwad, India Correspondence: R. G. Kadapatti, Research Scholar, Teacher Fellow on FIP, Department of Studies in Economics, Karnatak University, Dharwad Received: June 23, 2014 Accepted: June 30, 2014 Available online: July 9, 2014 doi:10.11114/ijsss.v2i3.463 URL: http://dx.doi.org/10.11114/ijsss.v2i3.463 Abstract Small farms measuring less than 2 hectares constitute 85% of the total operated farms in the world. Overwhelming majority of these small farms are located in Asia (87%) followed by Africa (8%) and Europe (4%). In Asia, China accounts for half of the world‟s small farms (193) followed by India. Global trends indicate a decline in small farms in developed countries, while there is an increase in small farms in developing countries. Average farm size in Asia and Africa is 1.6 hectare compared to 67 hectares in Latin America, 27 hectares in Europe and 121 hectares in North America. Various studies in India during the 60s, 70s and in the later years have revealed that there is an inverse relationship between size of farms and productivity, despite a few researchers holdings contrary opinion. Findings by UN agencies and National Sample Survey (NSS) have supported farm size and productivity relationship. Small farms have been the main stay for food security and labour employment in India. Despite their significance in providing food security, family labour employment and economy in management and high productivity per acre, small farms face a few challenges particularly in the wake of globalisation and WTO dispensation. Enhancing the productivity of small farms has been stressed by various experts. Measures like providing modern technology, information and knowledge for better skills and extended credit have been suggested for higher productivity of small farms. Small farms need positive material and policy support by the Government. Keywords: Small farms, operational area, operational holdings, Average size, Agricultural Productivity, Cropping Intensity, Diversification & Livelihood. 1. Introduction There are serious concerns about the performance of agricultural sector in India. Agricultural sector has shown less than 2 percent per annum growth during the past decade. Further there is disconnection between employment growth and GDP growth. There has been a lopsided approach to agriculture in India during the last few decades. Globalisation policies during the 1980s and particularly during1990s and beyond have created many challenges for Indian agriculture. Some of the consequences and impacts of globalisation relate to i) exposure of domestic agriculture to international competition ii) growth of non-agricultural sector and its impact on demand for agricultural products iii) Urban middleclass lifestyle changes including diet, rising food imports, competitiveness and diversification of domestic production system iv) Vertical integration of food supply chain etc. The small farmers have to face these problems in the post WTO dispensation. The paper tries to analyse the various aspects of small farm holdings, their strengths, the challenges faced by them and the opportunities available for their future growth etc. 2. Objectives The research paper has the following objectives: 1) To provide a comprehensive conceptual frame work for the small farm holdings. 2) To analyse the broad trends of small farm holdings at global, national and regional level. 3) To discuss the different aspects of strength, constraint and challenges of small farms. 3. The Current Study The relationship between size and farm productivity has been discussed intensively by experts based on their research