Impact of land fragmentation on economic feasibility of farmers in rice-based farming system in Myanmar

Land fragmentation, where a single farm has a number of parcels of land, is one of the important features of agriculture in many countries especially in developing countries. This study analyzes the impact of land fragmentation on rice productivity and profitability of rice farmers in Myanmar using farm level survey data. Necessary information was obtained through a farm household survey using questionnaire covering of 143 farms representing different degrees of land fragmentation. Descriptive analysis indicates that farms with low degree of fragmentation obtained higher average rice yield and higher profit margin than those of medium and high degree of fragmentation. The result estimated from Cobb-Douglas frontier production function clearly reveals that land fragmentation has a significant negative effect on rice productivity. The estimated coefficient of land fragmentation is -0.21 implying that 1% increase in the number of plots, output will be reduced by 0.21%. This might be the result the fragmented land plots that may have a farm structure preventing application of inputs to evenly to all plots of land and discourages farmers from efficient use of land. Farms having many tiny plots lost space along plots boundaries which is directly related to the number of plots that lead to yield decrease. Moreover, unsecure scattering plots may cause yield loss because field plots are scattered over a wide area. Policy recommendation such as addressing structural causes of land fragmentation, providing tradable land use rights, reducing the number plots, and developing rural infrastructure and creating non-farm employment opportunities to release pressure on land are needed to reduce land fragmentation and enhance socio-economic status of farm households.