Tag: Data Envelopment Analysis

Climate change is putting increasing pressure on agriculture, which might be reduced by paying more attention to risk management, production efficiency and farm investment. This paper describes the interrelationship between crop insurance take-up, technical efficiency and investment in Hungarian farming using a system of simultaneous equations. The empirical analysis is based on farm accountancy data for the period 2001-2019. Results suggest that both technical efficiency and investment have positive and significant effects on insurance take-up. Accordingly, higher technical efficiency and a higher investment rate both lead to increased insurance usage. In terms of its relationship with efficiency, insurance has a positive and significant coefficient, but investment does not have a significant influence on technical efficiency. Where investment is concerned, insurance usage has a positive and significant effect, but the role of technical efficiency is insignificant. Results suggest that policy interventions that stimulate any of the three factors can potentially have additional positive impacts through spill-over effects on other factors. These effects could be further enhanced if, for instance, interventions focusing primarily on insurance take-up also pay attention to investment by differentiating insurance premium subsidies, depending on whether there is an ongoing (or operating) investment that can be linked to weather-related ...

This paper aims to examine the current state of dairy cattle farming in Greece, to identify factors that affect its profitability, and to analyse the efficiency of farms, using the non-parametric Data Envelopment Analysis (DEA) method. It also assesses the economic viability of dairy cattle farms by quantifying the technical efficiency of their processes, with a view to suggesting measures that may serve to improve competitiveness. Results have shown that the mean technical efficiencies estimated for the CRS and VRS DEA approaches are 0.693 and 0.754 respectively, indicating that 30.7% and 21.6% equiproportional decreases in inputs are feasible, given the level of outputs and the production technology.

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.