By Dharam Ghai, Azizur Rahman Khan, Eddy Lee, Samir Radwan
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5 (6) 1975 at 1964Prices Total Expenditure Sourr:e Korean Ministry of Agriculture and Fisheries, Farm Household Incoml! Survey, 1964 and 1976. 1 1964 Total Grain Sold Source Korean Ministry of Agriculture and Fisheries, Farm Household Income Survey, 1964 and 1976. \ ~ i:! E: - s::i.. ~ ::s Q ;! ~ ~· ::s ~ ... 2 which shows that yields per unit of land increased relatively uniformly for farms across all holding sizes. These observations would remain true even after we check for the possible effects of changes in the composition of farming output and in the composition of total farming income.
Rice is the dominant crop, accounting for 60 per cent of the cultivated area and together with barley, the second most important crop, accounts for 68 per cent of total cultivated area. Thus, in addition to the level of technology and the farm size distribution, this is a further factor making for homogeneity in the rural economy. This predominance of grain production contrasts with the cropping pattern in economies which have undergone Western colonial rule, where export crops predominate and where also a 'dualism' between a plantation and a peasant sector is often reinforced by differences in cropping patterns.
It declined for the bottom three income classes and increased for the top two. Apart from being consistent with a widening of relative inequality among farm households, it also raises some questions about the nature of the income increase. The relative price of grain (both rice and barley) increased sharply between the two years as a result of a sharp increase in procurement prices and this could account for the fact that consumption was cut back in favour of grain sales. This would imply that most of the income increase could be explained by this relative price effect and not by the increase in physical output.