Land fragmentation, also known as scattered land holdings, is a common phenomenon in
agriculture around the world. In some cases, it has even persisted through government-supported
land consolidation programs that aim to improve agricultural productivity. This study evaluates
the effect of land fragmentation on agricultural production and hypothesizes that it may be
beneficial to farmers by diversifying risk onto separate land plots that usually have
heterogeneous growing conditions. Applying a stochastic frontier model to the Tanzania Living
Standards Measurement Study (LSMS) data, we find evidence to support the risk-reduction
hypothesis and indications that land fragmentation may be conducive to efficiency. This second
finding may seem counterintuitive but is also supported by similar studies. We further argue that
accounting for risk preferences that are absent from current framework in future research may
help explain the double bonuses of land fragmentation.