Capital volumes as a determining factor of economic concentration in the agropampa (2002- 2018)

Abstract

The recent economic concentration of agricultural production in the countryside has emerged as an irrefutable fact from a series of studies based mainly on census data. These data allow us to observe a trend towards the expulsion of smaller production units and an increase in the average area occupied by each of the units that remain in activity. This process of economic concentration manifests itself in two simultaneous trends, intermediate concentration and concentration between higher strata. This article argues that to account for this phenomenon it is not enough to explain the economic advantages of larger scale production, but it is also necessary to incorporate the
increase that growing technical demands produce in the volume of capital required to sustain the accumulation process. To this end, we work with census data and available economic information. We propose a crop rotation model to realistically address this phenomenon in primarily or exclusively agricultural production.