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Excellent argument. The issues you do not discuss however, are that even with intensification and higher productivity per unit of land or water [even in terms of financial profit],.many people have holdings that are far too small to make a living; and the return per unit of labor which is most crucial for achieving prosperity is usually low. Micro holdings are promoted by many governents and donors on irrigation schemes to achieve "equity"--maximizing the number of people who receive a piece of land -- but this actually perpetuates poverty, albeit at a slightly higher level of nutrition.

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