Patterns of rural labor utilization in northwest Portugal

Abstract

This study evaluates some possible agricultural household responses to changes in output prices due to Portugal's entry into the EC. The patterns of interest were, continuing expansion in farming, continuing part-time farming and leaving farming. Farm accounts were used to model different farm types and evaluate their farm returns. Simulations were performed, using different technologies, levels of family labor availability, and land area. The results show that part-time farming is a viable alternative in the northwest region and that there are strong economic incentives for traditional farms to specialize and adopt more modern technologies. The dairy system exhibits the highest returns. Traditional farms that do not have some available fixed family labor will face pressures to leave farming; but since family labor with low opportunity cost is more available on the small traditional farms, farm size is not expected to expand rapidly because leaving farming is not likely in a great way. (Abstract shortened with permission of author.)