Latifundium

As latifundia (Latin Latifundium; " large scale " from latus, fundus, " farm property " ) was called in the Roman Empire, a vast estate.

Latifundia arrived in Italy after the Second Punic War, and repressed in the late Republic in many parts of the existing small-scale or medium-sized farms based on agriculture. They were managed using a number of slaves, among which free farm workers as seasonal workers were employed. The main economic system of latifundia was livestock, besides also the olive and wine growing. By contrast, the cereal production was unprofitable in the slave economy.

In imperial times latifundia were the predominant form of farming in parts of the empire, in Italy and Sicily, and North Africa, Spain and Gaul. Organizational center of a large landed estates was the villa rustica.

After the Roman model are also large estates later times, as in Portugal, Spain and Latin America, called latifundia.

The landowner of such large-scale agricultural operations distributed his property to multiple small tenants and lives of the leasehold interest. These are independent of the income of the tenant. The crofters thus bears the entire risk. In addition, the tenant usually lack the capital for investments, and the landlord has no incentive to encourage investment.