Research Reports
Classifying Farm Typology for Customized Agricultural Policies
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AuthorKim, Soosuk
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Publication Date2006.08.01
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Original
This study aims to classify farm typology in Korea, which is a basis work for performing 'customized agricultural policies'. For references for farm typology, classifying farm typology in EU and Germany is investigated. For empirical analysis, multivariatee techniques of factor and cluster analysis are applied to farm-level cross sectional data from 2004, allowing firstly, the identification of underlying constructs characterizing farms within the sample, and secondly, the categorizing of relatively homogeneous farms in terms of farm characteristics, production performance index, farming type(major crop produced) and farm operator's human capital. The main results of this study are summarized as follows.
Firstly, cluster analysis indicated the presence of six clusters. The classification of sample farms thus resulted in six distinctively different types. The six identified types can be characterized as: specialized rice farms, midium sized horticulture farms, specialized livestock farms, diversified farms with old operators, small income farms with old operators, and farms with off-farm income as a major income. These findings highlight important farm typology differences for consideration from agricultural policy formulation perspectives
Secondly, clustering is influenced mainly by agricultural income, operator age, and farming type. These variables can be used as major indices for classifying Korean farms. A simplified index for classifying farm typology will be required for actual application on population of farms. This study suggests two alternatives, these being "transformed farm size" and "standardized income".
Researchers: Soo-Suk Kim, Tae-Gon Kim, Hye-Jung Kang
E-mail address: soosuk@krei.re.kr, taegon@krei.re.kr, kang@krei.re.kr
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