Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project

This paper investigates the technical efficiency of two samples of maize producers in eastern Ethiopia, one involving farmers within the Sasakawa-Global 2000 project and the other involving farmers outside this program. The study uses stochastic frontier production functions in which the technical inefficiency effects are assumed to be functions of the age and education of the farmers, together with the time spent by extension advisers in assisting farmers in their agricultural production operations. For the cross-sectional data obtained for the 1995/96 agricultural year, Cobb-Douglas stochastic frontiers are found to be adequate representations of the data, given the specifications of the translog stochastic frontiers for farmers within and outside the project. The empirical results indicate that farmers within Ihe SO 2000 project are more technically efficient than farmers outside the project, relative to their respective technologies. The mean frontier output of maize lor farmers within the SG 2000 project is significantly greater than that for the farmers outside the project.     

MEASUREMENT OF TECHNICAL EFFICIENCY IN THE NORTH-WEST FRONTIER PROVINCE OF PAKISTAN

The objective of this study is to measure technical efficiency, using a translog frontier production function on cross-sectional data from 397 farms in the North-West Frontier Province of Pakistan in 1988–89. The estimated farm level technical efficiency is found to be dependent upon levels of credit and education, farmers' ages and the extent of land fragmentation. Lack of education, restricted credit and fragmented holdings are found to be causes of inefficiency; hence policies which consolidate holdings, provide credit or educate farmers will tend to improve efficiency in agriculture.     

Farms’ technical inefficiencies in the presence of government programs*

We focus on determining the impacts of government programs on farms’ technical inefficiency levels. We use Kumbhakar's stochastic frontier model that accounts for both production risks and risk preferences. Our theoretical framework shows that decoupled government transfers are likely to increase (decrease) DARA (IARA) farmers’ production inefficiencies if variable inputs are risk decreasing. However, the impacts of decoupled payments cannot be anticipated if variable inputs are risk increasing. We use farm‐level data collected in Kansas to illustrate the model.     

Off‐farm work,technical efficiency,and rice production risk in Taiwan

This article investigates the differences in yield production, production efficiency, and yield risk for farmers both with and without off‐farm work. Using a nationwide survey of rice farmers in Taiwan, we estimate two stochastic production frontier models that accommodate technical inefficiency and production risk simultaneously for farmers both with and without off‐farm work. The stochastic dominance criterion is then applied to compare the differences in the distributions of the estimated technical efficiency and yield risk between groups. The empirical results indicate that these two groups of farmers use resources in different ways, and off‐farm work is not necessarily associated with lower technical efficiency. For farmers in the lower percentiles of the efficiency distribution, those with off‐farm work are more efficient than their counterparts without off‐farm work. In addition, farmers with off‐farm work face higher production risk and this result is robust for the entire distribution.     

农业生产性服务对玉米生产技术效率的影响研究——基于微观数据的实证分析

[目的]探究农业生产性服务对玉米生产技术效率的影响,引导农业生产性服务精准化发展,有助于维稳国家粮食安全,尽早实现农业现代化和乡村振兴发展目标。[方法]文章利用对黑龙江省13市47村298个玉米种植户的微观数据,构建随机前沿生产函数模型对玉米生产技术效率进行测算,并在此基础上构建技术无效率模型,实证检验农业生产性服务对玉米生产技术效率是否产生重要影响。[结果]目前玉米生产技术效率平均值在75%左右,有较大提升空间;农资供应服务、农业技术服务、农业信息服务、农机作业服务均能够显著提高玉米生产技术效率,但影响程度存在一定差异,其中农业信息服务对玉米生产技术效率的作用效果最为明显,其次是农机作业服务、农业技术服务和农资供应服务;性别、年龄、受教育程度、是否担任村干部、是否有农地流转、玉米收入占比对提高玉米生产技术效率有显著正向影响,是否兼业对提高玉米生产技术效率有显著负向影响。[结论]提高玉米生产技术效率要从完善农业生产性服务体系、建立农村信息服务平台、提高农户认知水平等方面入手。     

Institutional Environment and Technical Efficiency: A Stochastic Frontier Analysis of Cotton Producers in West Africa

This paper examines the effects of the institutional environment on West African cotton farmers’ technical efficiency (TE). First, key aspects of the cotton sector institutional environment are discussed, including input and credit access, and producers’ organisations. Then, a stochastic frontier production function, which incorporates technical inefficiency effects, is applied to farm level data collected in Benin, Burkina Faso and Mali. The survey includes farmers’ evaluations of the cotton sector institutional environment. Results suggest that institutional level features influence producers’ TE, besides farm‐level characteristics. Cotton growers who report a negative experience with the joint liability programme, who identify the cotton price mechanism or access to credit as the main constraints to performance, and who cultivate more hectares of cereals are technically more inefficient in producing cotton. Findings suggest that cotton farmers in Mali are less technically efficient in producing cotton than in Burkina Faso and Benin. Agricultural development policies focusing on reducing farmers’ financial stress, particularly through the establishment of adequate price mechanisms (i.e. higher farm‐gate prices and timely payments to farmers) and improvement in the input–credit markets should be encouraged to improve TE in West Africa.     

Measuring technical efficiency of Spanish pig farming: Quantile stochastic frontier approach

The pig meat production plays a significant role in the Spanish agrofood system. The assessment of the efficiency performance with which farmers are operating is necessary to define adequate policy and management strategies. In this context, this study aimed to determine the technical efficiency (TE) performance of pig farms and to examine the key factors that may affect the production system in Spain. To do so, the analysis relies on the quantile stochastic frontier model using a sample of Spanish pig farms. Results show a significant difference between production frontier parameters across the selected quantiles, which support the relevance of using the quantile regression approach. The optimal quantile for the stochastic frontier indicates an average TE level of 75%. In addition, empirical findings suggest that pig farmers in Spain give more importance to the adoption of high technology to improve their economic and technical performance as well as their competitiveness at the European pig market.     

Factors Affecting Technical Efficiency of Rice Farmers in Village Reservoir Irrigation Systems of Sri Lanka

Given the importance of water for rice production, this study examines the factors affecting the technical efficiency (TE) of irrigated rice farmers in village irrigation systems (VIS) in Sri Lanka. Primary data were collected from 460 rice farmers in the Kurunagala District, Sri Lanka, to estimate a stochastic translog production frontier for rice production. The mean TE of rice farming in village irrigation was found to be 0.72, although 63% of rice farmers exceeded this average. The most influential factors of TE are membership of Farmer Organisations (FOs) and the participatory rate in collective actions organised by FOs. The results suggest that enhancement of co‐operative arrangements of farmers by strengthening the membership of FOs is considered important for increasing TE in rice farming in VIS.     

Measurement of cost inefficiency with safety first measure of risk

The objectives of this paper are to incorporate a measure of risk aversion in the translog frontier cost function to estimate cost inefficiency. Risk-averse behaviour of farmers is hypothesised to reduce efficiency by leading to a situation in which the marginal value product of an input is less than price. In developing agriculture, farmers are aware of their subsistence needs and seek to minimize the probability of their incomes falling below a disaster level of income. Using such a safety first principle, a measure of risk-taking is developed and explained by socio-economic characteristics. This measure is used in the translog cost function as a fixed input and, using the frontier approach (with half normal distribution of inefficiency disturbance), a measure of cost inefficiency is obtained. This is related to socio-economic characteristics such as education, assets and holding size. A survey data of 436 farmers for the North-West Frontier Province of Pakistan is used to reach policy conclusions for reducing cost inefficiency.     

Heterogeneity of Long‐run Technical Efficiency of German Dairy Farms: A Bayesian Approach*

In parametric efficiency studies, two alternative approaches exist to provide an estimate of the long‐run efficiency of firms: the dynamic stochastic frontier model and the generalised true random‐effects model. We extend the former in order to allow for heterogeneity in the long‐run technical efficiency of firms. This model is based on potential differences in firm‐specific characteristics and in firms’ inefficiency persistence. The model is applied to an unbalanced micro‐panel of German dairy farms over the period 1999 to 2009. Estimation of long‐run technical efficiency and inefficiency persistence is based on an output distance function representation of the production technology and estimated in a Bayesian framework. The results suggest that heterogeneity in long‐run technical efficiency of farms is mostly attributed to discrepancies in farm‐specific factors rather than differences in farms’ inefficiency persistence. Farm size is positively related to long‐run technical efficiency while subsidies exert a negative effect on the long‐run technical efficiency of farms. Inefficiency persistence is found to be very high, but heterogeneity in this persistence is low.     

Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol,Philippines

We investigated the role of spatial dependency in the technical efficiency estimates of rice farmers using panel data from the Central Visayan island of Bohol in the Philippines. Household‐level data were collected from irrigated and rainfed agro‐ecosystems. In each ecosystem, the geographical information on residential and farm‐plot neighborhood structures was recorded to compare household‐level spatial dependency among four types of neighborhoods. A Bayesian stochastic frontier approach that integrates spatial dependency was used to address the effects of neighborhood structures on farmers’ performance. Incorporating the spatial dimension into the neighborhood structures allowed for identification of the relationships between spatial dependency and technical efficiency through comparison with nonspatial models. The neighborhood structure at the residence and plot levels were defined with a spatial weight matrix where cut‐off distances ranged from 100 to 1,000 m. We found that spatial dependency exists at the residential and plot levels and is stronger for irrigated farms than rainfed farms. We also found that technical inefficiency levels decrease as spatial effects are more taken into account. Because the spatial effects increase with a shorter network distance, the decreasing technical inefficiency implies that the unobserved inefficiencies can be explained better by considering small networks of relatively close farmers over large networks of distant farmers.     

Patterns in Technical Efficiency and Technical Change at the Farm‐level in England and Wales, 1982–2002

English and Welsh farm‐level survey data are employed to estimate stochastic frontier production functions for eight different farm types (cereal, dairy, sheep, beef, poultry, pigs, general cropping and mixed) for the period 1982 to 2002. Differences in the relative efficiency of farms are explored by the simultaneous estimation of a model of technical inefficiency effects. The analysis shows that, generally, farms of all types are relatively efficient with a large proportion of farms operating close to the production frontier. However, whilst the frontier farms of all types are becoming more efficient through time because of technical change, it is also the case that the efficiency of the average farm for most farm types is increasing at a slower rate. In addition, annual mean levels of efficiency for most farm types have declined between 1982 and 2002. The factors that consistently appear to have a statistically significant effect on differences in efficiency between farms are: farm or herd size, farm debt ratios, farmer age, levels of specialisation and ownership status.     

Annual and cropping season environmental production conditions effects on smallholder technical efficiency in sub‐Saharan Africa: Evidence from Ethiopia

This article investigates the impact of environmental production conditions on smallholder farmers’ technical efficiency in Ethiopia for wheat, maize, and sorghum farming. We use a household panel data set with annual and cropping season environmental production conditions to estimate the technical efficiency scores. The results show that including environmental production conditions in the stochastic frontier has a significant impact on farmers’ technical efficiency scores. Technical efficiency scores improve when environmental production conditions are incorporated in the stochastic frontier. Thus, accounting for environmental production conditions reduces the inefficiencies that otherwise may be attributed to the characteristics of smallholder farmers.     

辽宁省粮食生产技术效率分析

该文利用1994～2009年省粮食生产相关数据,采用超越对数随机前沿生产函数模型,对辽宁省粮食生产技术效率变化和影响因素进行分析。结果表明,辽宁省粮食生产技术效率总体上还有待进一步提高的潜力,而加强农田灌溉设施和提高农机装备水平、提升农技服务、继续加大粮食生产补贴政策以及加强防灾减灾能力建设是提高粮食生产技术有效性的重要政策取向。     

基于SFA模型的河南省粮食产量时空变化及投入要素影响

[目的]粮食问题影响着一个国家的国民经济发展和人民生产、生活,农业在整个社会生产活动中占有重要地位,河南省是全国农业大省,对河南省粮食产量进行分析具有重要的现实意义。[方法]以2005—2015年河南省各县粮食产量和投入要素为研究对象,将研究数据面板化,利用线性相关、随机前沿生产函数模型、脱钩分析等方法,运用ArcGIS 10.1、Eviews 8.0和SPSS 19.0等软件,对河南省各县粮食产量时空变化、投入要素影响程度和脱钩效应进行分析。[结果]模型运算结果表明文章选用模型效果较好,能够反映粮食产量的时空变化以及其与投入要素之间的关系,且符合河南省粮食产量实际情况。研究结果表明:(1)从时间上来看, 2005—2015年河南省粮食产量总体呈线性上升趋势;(2)从空间上来看,河南省中部、北部、东部和南部粮食产量较高,西部受地势因素影响粮食产量较低;(3)粮食产量与化肥施用折纯量、粮食播种面积、农民经营性收入、农药施用量、农业机械总动力和乡村农业人口呈正相关关系,与农村用电量呈负相关关系;(4)化肥施用折纯量、农村用电量、农药施用量存在脱钩效应,粮食播种面积、农民经营性收入、农业机械总动力不存在脱钩效应。[结论]应保持目前粮食播种面积不变,提高农业机械总动力,突出投入要素的影响,同时对河南省各县进行区域功能定位。     

Sawmill production in the interior of British Columbia: A stochastic ray frontier approach

We examined the productive efficiency of the interior sawmilling industry in British Columbia using stochastic frontier analysis. Prior sawmilling studies using this method have neglected the multi-output nature of sawmills. To accommodate both lumber and chips as outputs, we used a ray production function and adopted it into the stochastic frontier framework. A translog functional form was specified with three inputs (i.e., capital, labour, and roundwood) and applied to five years (2003–2007) of mill specific production data. The ray production function is flexible allowing factor productivity to vary with the output mix. Results indicated the presence of both economies of scale and technical inefficiency. This suggested that a long-run equilibrium had not yet been reached during this time and might explain recent restructuring occurring in this region.     

Resource use efficiency under self‐selectivity: the case of Bangladeshi rice producers

The paper jointly evaluates the determinants of switching to modern rice and its productivity while allowing for production inefficiency at the level of individual producers. Model diagnostics reveal that serious selection bias exists, justifying the use of a sample selection framework in stochastic frontier models. Results revealed that modern variety selection decisions are influenced positively by the availability of irrigation and gross return from rice and negatively by a rise in the relative wage of labour. Adoption of modern rice is higher in underdeveloped regions. Seasonality and geography/location does matter in adoption decisions. Stochastic production frontier results reveal that land, labour and irrigation are the significant determinants of modern rice productivity. Decreasing returns to scale prevail in modern rice production. The mean level of technical efficiency (MTE) is estimated at 0.82. Results also demonstrate that the conventional stochastic frontier model significantly overestimates inefficiency by three points (MTE = 0.79). Policy implications include measures to increase access to irrigation, tenurial reform and keeping rice prices high to boost farm returns and offset the impact of a rise in the labour wage which will synergistically increase the adoption of modern rice as well as farm productivity.     

The Cost Effects of Government‐Subsidised Credit: Evidence from Farmers’ Credit Unions in Taiwan

We investigate government‐subsidised credit effects on participating financial institutions’ performance in terms of cost efficiency. Using farmers’ credit unions in Taiwan as an example, we find that credit unions’ cost inefficiency is positively correlated with the extent of involvement in subsidy programmes. The results are robust to the control of local competition and labour quality. In addition to the stochastic frontier models from which we obtain the main results, we also propose a new distribution‐free estimation method based on quantile regressions. Results of this study point out that, when evaluating the social costs of the credit programmes, it is important to take into account the efficiency loss generated among financial intermediaries by credit subsidy programmes.     

Estimating Technical Efficiency and Production Risk under Contract Farming: A Bayesian Estimation and Stochastic Dominance Methodology

We investigate production risk, technical efficiency and risk attitudes amongst contract and independent farmers. We use a Bayesian parametric approach and stochastic dominance quantile regression methods to compare technical efficiency and risk attitude of smallholders in Nepal. Using farm‐level data, we find that contract farmers appear to show lower inefficiency and lower production risk. Additionally, contract and independent farmers can increase output by reducing the scale of operation. Regardless of the commodity produced and farming arrangement (contract or independent production), we find that labour, land and other inputs are risk‐augmenting, while the role of capital is mixed. We find a second order stochastic dominance (SSD) for lentils, and first order stochastic dominance (FSD) for tomatoes, ginger and HYV paddy seed commodities. Finally, contract farmers are more risk averse than independent farmers, regardless of the commodity produced.     

INTER-REGIONAL FARM EFFICIENCY IN PAKISTAN'S PUNJAB: A FRONTIER PRODUCTION FUNCTION STUDY

Agricultural production efficiency in four irrigated cropping regions of the Punjab province of Pakistan was compared on the basis of a probabilistic frontier production function estimated from whole-farm survey data for the year 1984-85. It is found that the gross income of farmers can be increased by 13% at the current levels of resource use if the production gap between ‘best practice’ and ‘average’ farmers is suitably narrowed in all cropping regions. This will increase profits by up to 40%. No significant difference in technical efficiency was found across the regions. Economic efficiency was similar across all cropping regions except in the cotton region, which had significantly lower economic efficiency due to higher allocative inefficiency, which in turn was attributable to the more dynamic production technologies being adopted in that region.