The paper examines the case for market-driven land consolidation using data from several recent surveys in the Republic of Moldova. We show that, in the individual sector, larger farms consume less of their output and attain higher levels of commercialization. Larger individual farms thus have higher revenues from commercial sales and generate higher family incomes. Farm augmentation accordingly makes a positive contribution to the well-being of the rural population. The extent of parcel consolidation is directly correlated with the relative efficiency of farms: consolidated family farms are more efficient than those with fragmented holdings. Hence, land consolidation leads to better economic performance of family farms.