Governance and Agricultural Production Efficiency: A Cross‐Country Aggregate Frontier Analysis

This study uses a stochastic frontier approach to investigate the relationship between six governance indicators and agricultural efficiency. We find that improvements in rule of law, control of corruption and government effectiveness enhance agricultural productivity significantly if each indicator enters the inefficiency equation independently. When all six indicators are included in the equation, we find that an improvement in rule of law raises agricultural efficiency significantly, but increases in voice and accountability and political stability appear to significantly reduce agricultural efficiency. Grouping the six indicators into three dimensions, we find that an improvement in ‘respect for institutional framework’ raises agricultural efficiency significantly, but an enhancement in ‘selection of authority’ reduces agricultural efficiency significantly. Our results imply that poorer countries can enhance their agricultural efficiency substantially by strengthening the state and citizens’ respect for institutional framework. However, our results show that greater democracy is associated with lower agricultural efficiency. This finding is consistent with interest group capture and political failure arguments of the political economy literature.     

茶农生产性投资的技术效率及其影响因素实证分析——以福建安溪为例

以福建省安溪县茶农问卷调查数据为基础,利用随机前沿生产函数模型估计样本茶农投资的技术效率,并分析技术效率的变化规律及其影响因素。研究表明,茶农从事茶叶生产加工的时间、茶农从事茶叶生产加工的时间的平方项、茶农户主的受教育年限这3个解释变量对于技术效率的影响不显著;而茶农户主年龄、茶农主栽品种、是否接受过培训、茶农茶叶收入占家庭总收入的比例、茶农家庭拥有的茶园面积、村庄所在地类型虚变量与技术效率呈现正相关的关系;茶农家庭拥有的茶园面积的平方项、地区差异则对技术效率产生负向影响。     

Sustainable agricultural intensification practices and cost efficiency in smallholder maize farms: Evidence from Ethiopia

Sustainable agricultural intensification (SAI) practices have been promoted in developing countries to improve farm productivity and environmental services. However, it is still unclear whether use of a combination of SAI practices has a significant influence on the cost efficiency of smallholder farms. This study investigates whether the cost efficiency of smallholder maize producers in Ethiopia depends on use of input-augmenting and agronomic SAI practices. Stochastic cost frontier models that account for heterogeneity across farms are used for estimation. We find that the use of individual SAI practices increases cost while the combined use of the practices reduces it. The marginal effect on cost reduction is substantial when SAI practices are set at their sample maximum levels. Overall, the results demonstrate the benefit of using a combination of SAI practices in minimizing production cost while addressing the adverse effects of soil degradation and climate variability. To enhance food security, smallholder farm incomes and the sustainability of production in developing countries, policy programs should focus on promoting packages of input-augmenting and agronomic SAI practices.     

贫困山区农户茶叶生产技术效率及影响因素研究

基于湖北省382份茶叶种植户调研数据,采用随机前沿生产函数模型“一步估计”法分析贫困山区农户茶叶生产技术效率和影响因素。研究结果表明:样本户茶叶种植存在较大改进空间;样本户资本和劳动力投入剩余;茶园的海拔、树龄、茶农是否加入合作社、种植面积、户主是否受过种茶培训等因素对农户茶叶生产技术效率有重要影响。因此,提出紧抓乡村振兴战略机遇,推动贫困山区茶产业高质量发展;建立茶产业“三项补贴”,改善茶园基础设施条件;优化茶叶种植布局,提高合作社服务水平;成立茶产业发展基金,加快培育职业茶农,以提高贫困山区农户茶叶生产技术效率。     

The Impact of Direct Income Transfers of CAP on Greek Olive Farms’ Performance: Using a Non‐Monotonic Inefficiency Effects Model

We analyse the impacts of direct income transfers on the technical efficiency of Greek olive farms. We use a production frontier function and a non‐monotonic inefficiency effects model, which incorporates the influences of exogenous variables (subsidies, farm characteristics, etc.) on technical efficiency. The model is applied to 1995–2004 FADN data. The results show that direct transfers of the CAP had a negative and monotonic effect on technical efficiency, whereas the degree of specialisation had a non‐monotonic effect on technical efficiency.     

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.     

Production Efficiency of Jasmine Rice Producers in Northern and North‐eastern Thailand

The paper jointly evaluates the determinants of switching to Jasmine rice and its productivity while allowing for production inefficiency at the level of individual producers. Model diagnostics reveal that serious selection bias exists, justifying use of a sample selection framework in stochastic frontier models. Results from the probit variety selection equation reveal that gross return (mainly powered by significantly higher Jasmine rice price), access to irrigation and education are the important determinants of choosing Jasmine rice. Results from the stochastic production frontier reveal that land, irrigation and fertilisers are the significant determinants of Jasmine rice productivity. Significantly lower productivity in Phitsanulok and Tung Gula Rong Hai provinces demonstrate the influence of biophysical and environmental factors on productivity performance. The mean level of technical efficiency is estimated at 0.63 suggesting that 59% [(100 ? 63)/63] of the productivity is lost due to technical inefficiency. Policy implications include measures to keep Jasmine rice price high, increase access to irrigation and fertiliser availability, as well as investment in education targeted to farm households which will synergistically increase adoption of Jasmine rice as well as farm productivity.     

Design Factors Influencing Willingness‐to‐Pay Estimates in the Becker‐DeGroot‐Marschak (BDM) Mechanism and the Non‐hypothetical Choice Experiment: A Case of Biofortified Maize in Zambia

Two of the experimental methods used to estimate willingness‐to‐pay (WTP) for a non‐market good, the Becker‐DeGroot‐Marschak (BDM) mechanism and the non‐hypothetical choice experiment (nHCE) often lead to significantly different WTP estimates, complicating the choice between the methods. In Zambia the same group of researchers used both techniques to evaluate WTP for orange maize, which provides more vitamin A than other varieties. This provided an opportunity to analyse the sources of the difference. In the BDM experiment, one group of respondents was provided with more training opportunities than the other, and made higher bids. Accounting for lexicographic behaviour in the nHCE reduced the estimated WTP. These two design factors together resulted in a decrease in the WTP difference for orange maize (1,279–632 ZMK) although the difference remains statistically significant. More training was also shown to eliminate the effects of different orders in which maize varieties were presented.     

Analysing the Agricultural Costs and Non‐market Benefits of Implementing the Water Framework Directive

Implementation of the Water Framework Directive (WFD) represents a fundamental change in the management of water in Europe with a requirement that member states ensure ‘good ecological status’ for all water bodies by 2015. Agriculture is expected to bear a major share of WFD implementation costs as it is compelled to reduce the emission of diffuse water pollutants. The research outlined here comprises interdisciplinary modelling of agricultural land use, hydrology and consequent water quality effects to consider both agricultural costs and the non‐market recreational use (and potentially non‐use) values that implementation of the Directive may generate. A theme throughout the research is the spatial distribution of the costs and benefits of WFD implementation, which is addressed through the use of GIS techniques in the modelling of agricultural land use, the integration of land use and hydrological models, and the estimation, aggregation and transfer of the economic value of the benefits.     

集体林区林地经营效率的影响因素研究——基于地块尺度的微观调查数据

研究目的:基于辽宁省30个村庄270个农户703个地块调查数据,以地块为基本单元,揭示林地经营效率的影响因素,以期为提高土地经营效率提供依据。研究方法:随机前沿生产函数模型(SFA)和Tobit计量模型。研究结果:从林农特征看,家庭劳动力投入占比能显著提高林地经营效率,而户主年龄、受教育程度和联户均未发挥显著作用。从地块特征看,林地流转未能发挥其正效应,离家、离公路越近的林地其经营效率越高,公益林的经营效率远低于商品林。从自然特性看,坡度、灾害对经营效率有负向作用,灌溉为正向作用,但均不显著。从产权安全性看,产权证、经营期限、土地权利系数均有正向作用,但都不能有效促进经营效率的提高。从政策扶持看,森林保险对林地经营效率的提升具有显著作用;林权抵押贷款和林业补贴未起到显著作用,其中无补贴的林地经营效率高于有补贴的林地。研究结论:重视微观地块林农特征、地块特征、自然特性、产权安全性、政策补贴,对促进林地经营效率的提高和林业可持续增长具有重要意义。     

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.     

The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence

The increasing policy interest and academic debates on non‐tariff measures (NTMs) has stimulated a growing literature on how NTMs affect agri‐food trade. The empirical literature provides contrasting and heterogeneous evidence, with some studies supporting the ‘standards as catalysts’ view, and others favouring the ‘standards as barriers’ explanation. To the extent that NTMs can influence trade, understanding the prevailing effect, and the motivations behind one effect or the other, is a pressing issue. We review a large body of empirical evidence on the effect of NTMs on agri‐food trade and conduct a meta‐analysis to disentangle potential determinants of heterogeneity in estimates. Our findings show the role played by the publication process and by study‐specific assumptions. Some characteristics of the studies are correlated with positive significant estimates, others covary with negative significant estimates. Overall, we found that the effects of NTMs vary across types of NTM, proxies used for NTMs, and levels of detail of studies. The estimated effects are also influenced by methodological issues and publication processes.     

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.     

Non‐Reciprocal Trade Preferences and the Role of Compliance Costs in the Agricultural Sector: Exports to the EU

We investigate whether non‐reciprocal preferential regimes granted by the European Union have an impact on agricultural export flows from beneficiary countries while accounting for the costs of compliance that may prevent exporters from taking full advantage of potential benefits. Compliance costs are heterogeneous and difficult to measure. We proxy their influence and specify a model that allows for a different preferential margin impact according to the proxy costs. Adopting the gravity framework and using a sample of 554 lines of agricultural products for 131 developing countries in 2002, we find that the costs of compliance play a role in making the schemes work: the lower the costs, the greater the impact of the preferential margins. Moreover, the estimated margin effect differs between different regimes.     

Socioeconomic aspects of rice‐fish farming in Bangladesh: opportunities,challenges and production efficiency*

In spite of the potential for rice‐fish farming in Bangladesh, it has been adopted by relatively few farmers because of socioeconomic, environmental, technological and institutional constraints. Rice monoculture remains the main farming system in Bangladesh even though integrated rice‐fish farming is the best farming system in terms of resource utilisation, diversity, productivity, production efficiency and food supply. Only a small number of farmers involve in integrated rice‐fish farming. This study concludes that rice‐fish farming is as production efficient as rice monoculture and that integrated performs better in terms of cost and technical efficiency compared with alternate rice‐fish farming. Integrated rice‐fish farming can help Bangladesh keep pace with the current demand for food through rice and fish production. However, a lack of technical knowledge of farmers, high production costs and risks associated with flood and drought are inhibiting more widespread adoption of the practice.     

Challenging Small‐Scale Farming: A Non‐Parametric Analysis of the (Inverse) Relationship Between Farm Productivity and Farm Size in Burundi

We use a non‐parametric approach to investigate the (inverse) relationship between farm productivity and farm size. A kernel regression is used on data of mixed cropping systems to study the determinants of production including different factors that have been identified in literature as missing variables in the testing of the inverse relationship such as soil quality, location and household heterogeneity. Household data on farm activities and crop production were gathered from 640 households in 2007 in two Northern provinces of Burundi. Our results do not reject the findings of an inverse relationship between farm size and productivity. However, we find that size returns vary substantially with farm size, that is, between 0.2 for the smallest farms and 0.8 for the largest farms. Other factors that significantly affect production include soil quality. Finally, we find a significant positive association between food security and farm size.     

Not All Thin Markets Are Alike: The Case of Organic and Non‐genetically Engineered Corn and Soybeans

We use time series methods to explore the relationship between prices for two different niche versions of feed corn and soybeans, and their conventional counterparts. Whereas organic versions are linearly cointegrated, and their premia are high and stable, non‐GE products – which are nonlinearly cointegrated – exhibit narrower premia that are subject to collapse. Because organics are also non‐GE, these differences point to the value of a well‐recognised and enforced USDA organic label and/or the importance consumers place on the non‐GE attributes of organic products.     

Efficiency in wine grape production: comparing long‐established and newly developed regions of South Africa

Efficiency, partly based on technology, is central to international competitiveness. This article applies a stochastic frontier inefficiency model to a panel of 77 wine grape farms in South Africa between 2005 and 2015 and allows the comparison of efficiency levels for the old established wine regions with those of newer entrants. Thus, we investigate whether experience plus first choice of location matters more than the follower's advantage of newer technology. In all regions, a greater share of permanent labor and increased supervision raised efficiency, while more inorganic fertilizer and less irrigation has the opposite effect. Innovations in trellising had insignificant effects (except in the old regions) but not replacing old vines reduced efficiency. However, a higher proportion of red varietals also lowered efficiency in the old regions due to a fall in the price of red wine as these farmers continued to concentrate on quality reds. The new regions compensated for falling prices by increasing crop size with irrigation and fertilizer and extending the area planted, but with less concern for quality. This appears to be more successful in efficiency terms, but as international demand for quality wine increases it may be a poor long‐term strategy.     

Efficiency Effects of Access to Information on Small‐scale Agriculture: Empirical Evidence from Uganda using Stochastic Frontier and IRT Models

Low power home electrical items such as radios, mobile phones and televisions are an important source of agricultural information for small‐scale farmers in developing countries. To empirically test the effects of access to information from these items on efficiency in agriculture, we formulate a stochastic frontier model augmented with a technical efficiency model that controls for an index capturing farmers' ‘ability to access information’. The index is constructed with a 2‐parameter item response theory (IRT) model based on farmers' access to the electrical items. Using six rounds of panel data on small‐scale farmers in Uganda, we find empirical evidence of a significant and positive relationship between farmer ability to access information and farm efficiency. There is also evidence that the size of these effects is larger for more literate hence better educated farmers. Greater access to information also appears to be associated with increased variance of (in)efficiency and output although the form of the increased variances is underpinned by low risk of lower efficiency and output realisations and high likelihood of higher efficiency and output realisations. Our findings imply that access to limited quantities of electricity needed to power these electrical items can have positive farm efficiency effects, and hence the importance of off‐grid electricity (e.g. standalone solar panels) for small‐scale farmers in typically isolated communities in developing countries.     

Ex‐ante Evaluation of Policy Measures: Effects of Reward and Punishment for Fertiliser Reduction in Palm Oil Production

Palm oil production creates negative externalities, e.g. through intensive fertiliser application. Policies to limit externalities need an effective, sustainable and efficient measure We use a business simulation game in a framed field experiment in Indonesia to test ex‐ante different incentives for reducing such negative externalities. This setting allows inclusion of adequate contextual features, required for reasonable ex‐ante evaluation of policy measures. The different designs of the test incentives (either a reward or punishment) varied in their magnitude and probability of occurrence but with constant effects on expected income. Results show that participants react differently to these incentives, indicating that the design can contribute significantly to effectiveness, sustainability or efficiency. A high reward with a low probability was found to be the most effective and sustainable incentive. Moreover, for the most efficient design, a low and certain reward is indicated.