A nonparametric analysis of the determinants of family farm efficiency dynamics in Lithuania

This article presents insights into the efficiency of Lithuanian family farms. The research covers the years 2004–2009 and is based on farm‐level Farm Accountancy Data Network data. Bootstrapped data envelopment analysis was employed to obtain efficiency scores, whereas stochastic kernels and multivariate methods, viz. fuzzy clustering and nonparametric regression, were utilized to assess the impact of selected determinants on efficiency. Clustering analysis indicated that the efficiency change paths specific for the analyzed sample differed in both their average levels and ranges. Furthermore, it was concluded that Lithuanian agricultural policy should focus on increasing the efficiency of crop farms. Cluster analysis suggested that production subsidies might be having a negative effect on efficiency.