Drawing on international evidence, the authors discuss the sources of economies of scale. Using representative farm-level survey data for South Africa's six major grain producing areas and one irrigation area for the period 1975-90, they: describe the the structure of South African agriculture,...

The authors investigate whether factor prices matter in agricultural production and in the selection of production technology. Each stage of the analysis corroborates the inducement hypothesis, which implies that factor prices do matter in agricultural production and in the selection of...