Human aspects on the re-organization and reallocation of resources on family farms

Authors

• N. Westermarck Department of Agricultural Economics, Helsinki University

DOI: https://doi.org/10.23986/afsci.71617

Abstract

This essay has sought to elucidate the issue of the influence of the human factor on the re-organization of production. However, very little empirical material dealing with the substance of the matter seems to exist, for which reason the issue has been dealt with somewhat peripherally. Certain conclusions may, nevertheless, be drawn. The significance of managerial skill in the reorganization of production and re-allocation of resources will continuously increase in importance in the future for the following reasons, which are all inter-related: Science and techniques are with increasing speed achieving technical improvements in methods, the sufficiently rapid adoption of which requires increasing alertness to enable the farmer to keep up with the times. It is not possible to create a rationally managed farm unit without resorting to new technical achievements, so the farmers of these farms are allowed to attain an income level deemed moderate by the government in its official agricultural policy. The size of the farms, expressed according to area, or man work units or in some other way, tends to increase, which also involves a closer dependence on credit granting. Farms are becoming increasingly commercial which requires a business training. It is obvious that the advantage of ability is considerably greater in those undertakings in which more capital is invested, taking into consideration the continuing growth of the part played by capital in the business. In order that the realization of the re-organization would keep pace with the technical development, sufficient attention should be given to 1) the attaining of up-to-date professional training 2) a sufficiently rapid succession of generations in the farming.