Usable agricultural land in Iceland is predominantly represented by permanent grasslands and pasture used for livestock grazing, while the cultivation of arable crops such as cereals and potatoes has a very modest incidence on the total agricultural surface area. The main purpose of this research, therefore, was to assess the technical efficiency of dairy and sheep farming across Iceland’s regions using annual census data for the years 2008 and 2017. The assessment of the technical efficiency of farms – one that is able to analyse multi-input/output production functions – has been estimated through the use of the non-parametric approach of Data Envelopment Analysis (DEA). The research findings have highlighted the need for farmers to reduce certain inputs such as labour costs and general productive overheads, as well as to address their efforts to extensive forms of livestock farming, notably sheep rearing, which is able to take advantage of the abundant and rich grasslands. In general, sheep farms have been found to be technically more efficient than dairy, while farms located in the capital region have been shown to have lower levels of technical efficiency overall.

More than 90 per cent of Italian farms have a usable agricultural area of less than 9 ha, even if over time there has been a growth of the average agricultural area per farm as a consequence of rural out-migration. This paper compares, using a nonparametric model, the technical efficiency of smallholder family (diretto coltivatrice), co-operative and limited company farms during the period 2000-2011. The diretto coltivatrice farms and the co-operative farms had higher levels of scale efficiency than the limited company farms, with a scale efficiency value equal to 100 per cent in ten years out of twelve. The average technical efficiency of diretto coltivatrice farms was higher than those of co-operative and limited company farms. The second part of the quantitative analysis used the self-organising maps (SOM) proposed by Kohonen. The SOMs indicated that the size of the agricultural area has a direct impact on the technical efficiency of farms and on their level of income.