Tag: technical 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 ...

The saffron sector as a sustainable farming system plays a primordial agro-ecological and socio-economic role in the Anti-Atlas region in Morocco. Under the Green Morocco Policy, the saffron area has more than tripled; however, productivity is still very low. To evaluate the efficiency of Moroccan saffron farming and its determinants, we estimated a stochastic frontier model using survey data collected in the production area. The results show that saffron farms suffer from technical inefficiencies. More time dedicated to saffron field operations, a higher number of saffron plots and a greater distance to the urban centre increase farm efficiency, while the age of the farmer and the presence of off-farm activities decrease it. Building on our results, we argue that the new policy “Generation Green” should be focused on younger farmers as they are more likely to improve their skills and crop management techniques. To upscale the adoption of saffron as a sustainable farming system, an improvement in farmers’ market access is necessary which would facilitate farm specialisation, convert saffron to a majorsource of income and reduce dependence on off-farm activities. Strengthening the role of saffron cooperatives could represent an important step in this direction, but this requires improved knowledge dissemination ...

This paper applies a parametric approach to estimate technical and scale (in)efficiencies using input and output data at the level of 850 individual Colombian coffee-farms. Different Stochastic Production Frontier functions are estimated using a two-step procedure that corrects the endogeneity that has been ignored in previous works, leading to more reliable (i.e. unbiased and consistent) results. We conclude that small and medium coffee farmers are technically inefficient and exhibit increasing returns to scale, whereas large coffee farmers are close to being quasi-technically efficient and exhibit decreasing returns to scale. The corrected-for-endogeneity estimation also indicates that small and medium-sized units must prioritise primarily the land factor, whereas large farms should concentrate their efforts on increasing the labour factor. Based on these results, several agricultural and land policy recommendations are made.

This paper intends to determine the factors influencing the adoption of Management Information Systems (MIS) as well as the effects such systems have had on the technical efficiency of agribusiness firms in Cameron. 183 MIS users and 300 non-users were sampled through a multistage sampling procedure. An Ordered Logit model was employed to show that the user’s level of satisfaction, the purchase price of equipment and technological performance all have a positive effect on MIS adoption. Conversely, fear of change in firm management, access to government regulations, and complexity of MIS equipment discourage the adoption of MIS. The Cobb-Douglas stochastic production function meanwhile revealed that ICT expense, firm size and number of customers were positively significant for the revenue of MIS users. For MIS non-users, ICT expense, firm size and quantity purchased also had a positive significance for revenue. However, the average technical efficiencies were 0.96 and 0.55 for MIS users and non-users, respectively, meaning that MIS users were far more technically efficient than MIS nonusers. Also, the Tobit regression model on MIS users revealed that MIS improved the technical efficiency of agribusiness firms adopting them. This study therefore recommends that agribusiness firms in Cameroon invest in MIS; moreover, they ...

This article examines the variations in mean technical efficiency estimates in organic agriculture and the factors that explain the observed variations. A three-stage process was employed in data collection. Firstly, journals on organic agriculture and related disciplines were identified and searched. Secondly, several publishers’ websites and databases, namely Cambridge Journals, Elsevier, Emerald, Oxford University Press, Sage, Taylor and Francis, and Wiley, among others, were covered. Databases included AgEcon Search, CAB Abstracts, DOAJ, EBSCOhost, Google Scholar and ScienceDirect. Thirdly, the reference lists of studies found in the first and second stages were searched to identify additional literature. In all, 42 studies constituting 109 observations published in the period 2002-2014 were found. Unlike existing literature on technical efficiency quantitative reviews in agriculture, this article employs a battery of tests to select the appropriate solution for multiple observations from the same primary study, as well as the appropriate functional form for the selected fractional regression model. The mean technical efficiency of organic agriculture for the period of study and the effects of other study characteristics are thoroughly discussed.

Russia is often considered the most prominent country to become a leader on the world grain market. However, several issues slow down Russia’s agricultural progress, for example: a lack of infrastructure and investments, unequal regional development and inefficient use of production technologies. This study therefore examines the grain production potential of Russian regions by employing a modified approach to stochastic frontier analysis that allows us to include not only production technologies, but also indicators of the country’s heterogeneity and diversity among regions. The results obtained indicate that climate conditions in combination with the level of human and institutional development, and infrastructure have significant effects on the production structure of regions and therefore should not be neglected while assessing regional policies and production potential.