We know that higher the size of farms lower will be the productivity of land while the reverse is true in the case of small farms. But in this analysis land was the variable factor. It means that in case of production function, the production function depends upon the units of land only. But practically it has been observed that Green Revolution consequent upon agri. technology, high yielding variety seeds, fertilizers, tube-wells, tractors and harvesters etc., has led to a remarkable increase in productivity of land and production. Thus the production function here will be having agri. inputs, in addition to land. Now it is to be seen whether green revolution has led to increase the productivity of big farms or it has helped to increase the productivity of small farms.
According to Prof. Nadeem Ul Haq and M. Mahmood there exists a U-type relationship between size of farms and productivity of farms. Their statistics are based upon the data collected from different districts of Pakistan. He is the opinion that the medium sized farm owners did not avail any benefit from new technology.
After this discussion we come to the conclusion that it is doubtful that there exists an inverse relationship between site of farms and productivity of farms. This is because of the fact that the technology concerned with green revolution is highly expensive. The big farmers were in a position to purchase superior seeds, fertilizers, pesticides, threshers and harvesters etc. They could easily borrow from lending institutions. They have good relations with the workers and the staff of agri. departments. They get easy awareness regarding new seeds and new technology. As a result, the element of uncertainty vanishes as far as large farm-holders are concerned.
More appropriately, the modern inputs offset the losses which could arise due to inferior qualities of land or reduced supply of family labor. Consequently, the benefits which arise due to large farms are more than those from small farms. But, according to Prof, Griffen, due to technology of green revolution the disparities in income distribution in rural areas will increase. This is to be analyzed whether the small farmers lag behind the big farmer in adoption with new technologies. The answer is positive, as, when new technology is introduced the big farmers readily adopt it as their resources are ample and the level of knowledge is higher as compared with that of the small farmers. But with the passage of time when new technology spreads or rationing over it is put to an end the small farmers also get it. But the small farmers have to face the hurdle of finance. For this they send their family members to other areas and cities so that they could earn and send moneys back to their elders.
Thus, according to British Economist Lowdermilk, after a lag, the small farmers could be able to use the new inputs with the same intensity as used by the big farmers. This means that in long run the small farmers would avail the modern technology and the per acre yield of small farmers could increase on the basis of superior quality of lands and the family members. In this way, an inverse relationship would be established between the size of the farm and the productivity of the land which was temporarily suspended due to the technology of green revolution. It is explained with the help of Fig. where the shift and movement on a production function has been demonstrated.
Here in the presence of traditional technology the small and large farmers are at the points a and b which lie on the lines drawn from the origin to the production function. It is obvious that the per acre yield out of small farms is greater than that from the large farms. But, in short run, due to new technology, the big farmers reach the point d on the production function. As the points a and d lie on the same production function, they show that the output increases in the same proportion to increase in the size of land. But in long run, small farmers also shift over to new production function as the shifting from a to c shows. This denotes that the per acre yield of small farmers is greater than that of the large farmers. This also confirms the inverse relationship between the size of the farm and the productivity of the farm.