The history of agricultural growth and mechanization in some of today's industrial countries illustrates this generalization. In 1880, factor endowments differed widely among these countries, with Japan having only 0.65 hectares of land per male worker and the United States about forty times as much (see Binswanger and Ruttan 1978, tables 3-1 and 3-2).
These characteristics of rental markets are confirmed by some data for tractor rentals in South Asia and machinery rentals in the Philippines. The Philippine data show that most farmers own their animals, carts, plows, and harrows. Harvesting and threshing equipment, tractors, and motor vehicles, however, are used on about five to seven times more farms than own them, which indicates that rental markets are extremely well developed. Generalization 7. Where rental markets are fairly easy to establish, farm size has much less influence on the size of machines. Subsidies. Subsidies may speed up mechanization.

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The history of agricultural growth and mechanization in some of today's industrial countries illustrates this generalization. In 1880, factor endowments differed widely among these countries, with Japan having only 0.65 hectares of land per male worker and the United States about forty times as much (see Binswanger and Ruttan 1978, tables 3-1 and 3-2).
These characteristics of rental markets are confirmed by some data for tractor rentals in South Asia and machinery rentals in the Philippines. The Philippine data show that most farmers own their animals, carts, plows, and harrows. Harvesting and threshing equipment, tractors, and motor vehicles, however, are used on about five to seven times more farms than own them, which indicates that rental markets are extremely well developed. Generalization 7. Where rental markets are fairly easy to establish, farm size has much less influence on the size of machines. Subsidies. Subsidies may speed up mechanization.

Source 1 | Source 2 | Source 3

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