ABSTRACT
This chapter considers the major drivers of structural change, including policy, and the evolving role of farm households. The two fundamental drivers of structural change are globalization and technological change. Larger-size farms are often the early adopters of technology derived from research and development, either public or private, leading to increases in productivity. Agricultural policies vary across the globe, with the exception of the European Union, which shares a member-wide Common Agricultural Policy. Tax policy involves a variety of provisions that impact how firms and households organize their finances to minimize their tax burden and therefore can have indirect impacts on farm structure. There are numerous other factors that may also drive change in farm size and structure. These include consumer food preferences, input costs, and risk management. In recognition of the international celebration of family farms, some governmental statistical agencies did provide estimates of family farms based on the Food and Agricultural Organization definition.
