This Open Access book examines one of the most pressing questions in agricultural economics: the relationship between farm size and productivity in rapidly growing modern Asia.

Asia’s farm sizes are shrinking. From the 1970s to the present, average farm sizes across the region have fallen to around one hectare or less, despite rising wages and rapid economic transformation. Can such small farms remain viable in the face of mechanization, globalization, and growing food demand?

Historically, small farms were considered more productive when labor-intensive methods were adopted, due to the advantages of an abundant supply of family labor relative to land. However, as wages rise and mechanization spreads, new evidence suggests that economies of scale may be emerging, conferring advantages on large farms and thereby challenging this long-held belief.

Drawing on comparative studies from Japan, China, Southeast Asia, and South Asia, this volume explores:

• Why have farm sizes remained small, and in some cases declined, despite structural change?
• How are rising labor costs and mechanization reshaping productivity dynamics?
• What policy measures could ensure Asia’s agricultural competitiveness and food security?

In a field characterized by scarce data and limited recent research, this book fills a critical gap, offering fresh insights and actionable policy recommendations for governments, researchers, and development practitioners. Will Asia adapt and expand farm sizes, or risk becoming a major food importer, driving global food prices higher and deepening poverty?

This book is essential reading for anyone concerned with the future of agriculture, rural development, and food security in Asia and the rest of the world.

Keijiro Otsuka is a fellow of the Asian Development Bank Institute, and a research fellow of the Research Institute for Economics and Business Administration, Kobe University. He received a Ph.D in economics from the University of Chicago in 1979. His research focuses on the Green Revolution, land tenure and land tenancy, poverty reduction, and industrial development in Asia and sub-Saharan Africa.

Dil B. Rahut is Vice Chair of Research and Senior Research Economist at the Asian Development Bank Institute. His research focuses on agricultural and natural resource economics. Prior to joining ADBI, he was a senior global program manager for the International Maize and Wheat Improvement Centre’s (CIMMYT) socioeconomics and sustainable intensification programs and served as chair of the staffs’ committee at CIMMYT.

Raja R. Timilsina is Junior Research Economist at Asian Development Bank Institute. His research interests include behavioral and experimental economics, and environmental economics.  In addition to his role at ADBI, he is also a visiting Research fellow at the Research Institute for Future Design at Kochi University of Technology, where he previously worked as Assistant Professor at the School of Economics and Management.