Tag: allocative efficiency

Is an agricultural corporation more efficient than a traditional family farm? This paper attempts to answer this question by examining the technical and allocative efficiency of family farms and agricultural corporations. To do so, it applies the stochastic production frontier method in panel data built on the family farms and agricultural corporations in the Japanese rice sector and focuses on comparing the technical and allocative efficiency of the two production forms at the same scale of operation. Results reveal that family farms have a significant advantage over agricultural corporations in technical efficiency at each level of scale of operation. In both production forms, as the scale of operation increases, the technical efficiency correspondingly rises. However, the disparity in technical efficiency diminishes between the two production forms as their land size increases. In contrast, the allocative efficiency of different factors differs between family farms and agricultural corporations at different scales of land size. Overall, family farms show superiority in the allocative efficiency of labour, and agricultural corporations exhibit superiority in the allocative efficiency of agricultural capital. Last, decomposition of total  productivity progress (TFP) reveals that family farms have positive TFP change which is mainly attributable to a positive and large allocative ...

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.