Living Standards Measurements Study - Serbia 2002 - 2007

ural area economic development because investors
“skirt” places lacking a quality and trained labour
force. On the other hand, better educated people
usually migrate from rural areas which lack an
attractive economic environment and jobs adequate
for their specific knowledge and preferences
(Bogdanov N. 2007).
10.3.2. Ownership structure and
physical capital of agricultural
households
Farms' structure according to their size
indicates the prevalence of small farms. LSMS
results indicate that farms sized around 5 hectares
account for 73 percent out of the total number of
agricultural households. This share is lower
compared to 2002 LSMS (80 percent) and 2002
Census (78 percent), showing the presence of a
growing bimodal agrarian structure.
As regards small and the smallest farms (with
no land and with less than 1 hectare) they are
equally represented in both the richest and poorest
categories (2 nd and 5th quintiles – Graph. 9). Such
results are expected considering that this category is
extremely heterogeneous from the point of social
and economic structure of its members. Besides the
poorest rural population (those with no land and
socially vulnerable groups) small farms are also
cultivated by those to whom land and farm do not
represent the main capital (the employed, small
businessmen, pensioners who returned to rural
areas, urban households, etc). The correlation
between the size of the farm and poverty is reflected
more precisely by a position of medium-size farms
(1-5 hectares), that are the most numerous and
distribution of which in terms of consumption
quintiles is extremely unequal.
In comparison with 2002, the growing share of
big farms in the higher consumption quintiles is
visible (whereas not in the richest household
category), and the presence of small and mediumsize
farms increases by quintiles of consumption.
The share of medium-size farms in lower quintiles
of consumption is growing against a reduction in
the share of small farms. These changes are caused
by strengthening of bi-modal agricultural structure
but also the less favourable position of the mediumsize
households that are not able to achieve a
competitive productivity level. Medium-size farms
achieve performances of semi-own production
agricultural production: they lease some land,
possess machinery to be maintained, they use hired
labour much less than others, their market surplus is
not significantly higher compared to small farms. A
part of farms of this size, especially those with the
young labour force, has succeeded to transform into
commercial farms oriented to labour and capitalintensive
production.
Graph 10.9. Amount of land by quintiles of consumption
11 17
8 8 9
15 12
20
13
23 20 22
38
49
37
49 45
55
39
45
43
48
41
46
36
30
49
38
39
28
40
30
39
25
31
29
7 4 6 5 8 3
9 5 5 4 8 4
2002 2007 2002 2007 2002 2007 2002 2007 2002 2007 2002 2007
Total The poorest 2 3 4 The richest
No land (5ha)
142 Living Standards Measurements Study - Serbia 2002 - 2007