Analysis of Effective Factors on Farm Size Distribution in Iran

This paper examines the effects of economic variables on farm size inequality in Iran. The farm size index (FSI) is developed as a measure of farm size inequality. FSI are calculated for 16 provinces showed great variation over time. The spatial and temporal (between 1988 and 2003) differences in FSI are explained by running a pooled, cross-sectional time-series model. Profitable grain farming requires relatively large farm size and equipment investments, which lead to a relatively homogeneous structure of grains farms. A larger variation in the size of profitable farm operations is possible in livestock. Findings show share-farming and agri business has inverse relationship with FSI, too.