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.     

Modern Rice Technologies and Productivity in the Philippines: Disentangling Technology from Managerial Gaps

Using cross‐sectional farm‐level data from 3,164 rice‐farming households in the Philippines, we measure the impact of modern rice technologies on farm productivity while disentangling technology gaps (the distance between production frontiers) from managerial gaps (differences in technical efficiency). To do so, we combine a recently developed stochastic production frontier framework with impact evaluation techniques to control for biases stemming from observables and unobservables. First, we find an adequate control group using propensity score matching to mitigate the effect of biases from observable variables. Then, we test for biases that might arise from unobserved variables using a stochastic frontier framework corrected for self‐selection. Finally, we estimate meta‐frontiers to assess productivity differences between adopters and non‐adopters. The analysis shows that the adoption of certified seeds has a significant and positive impact on productivity, efficiency and net income in rice farming.     

Impact of land fragmentation and resource ownership on productivity and efficiency: The case of rice producers in Bangladesh

The paper analyzes the impact of land fragmentation and ownership of resources on productivity and technical efficiency in rice production in Bangladesh using farm level survey data. Results reveal that land fragmentation has a significant detrimental effect on productivity and efficiency as expected. The elasticity estimates of land fragmentation reveal that a 1% increase in land fragmentation reduces rice output by 0.05% and efficiency by 0.03%. On the other hand, ownership of key resources (land, family labour, and draft animals) significantly increases efficiency. The mean elasticity estimates reveal that a 1% increase in family labour and owned draft animal improve technical efficiency by 0.04% and 0.03%, respectively. Also, a 1% increase in the adoption of modern technology improves efficiency by 0.04%. The mean technical efficiency in rice production is estimated at 0.91 indicating little scope to improve rice production per se using existing varieties. Policy implications include addressing structural causes of land fragmentation (e.g., law of inheritance and political economy of agrarian structure), building of physical capital (e.g., land and livestock resources), improvements in extension services and adoption of modern rice technology.     

Modern rice technology and regional wage differentials in the Philippines

Fear has been widely expressed that the modern rice varieties have created large disparities in regional income distribution, as the productivity gap between favorable and unfavorable rice-production environments widened due to differential technology adoption throughout South and Southeast Asia over the last two decades. Technology affects the income of farm population directly through its effects on productivity and factor use, and indirectly through its effect on factor prices. In particular, the ultimate distributional impact of modern varieties will critically depend on the interregional labor-market adjustments through migration in response to regional wage differentials created by the differential technology adoption, since labor is the main resource of the majority of the rural population. We studied favorable and unfavorable rice-growing villages in the Philippines, and found that adoption of modern varieties during the 1970s was positively related to population growth rate. Contrary to popular belief, no association was observed between wage rates and adoption of modern varieties as of 1986. These findings support the hypothesis that the differential adoption of modern rice varieties induced interregional labor migration toward equalization of wage income across different production environments.     

Technology choice and efficiency on Australian dairy farms*

Deregulation of the Australian dairy industry, specifically the removal of price subsidies to ‘market milk’, as well as ongoing drought in many dairy regions, has placed considerable pressure on farm cash income and a search for ways in which dairy farms can be made to operate more efficiently. Using traditional farm survey data and a unique biannual data set on farm technology use, this paper estimates a stochastic production frontier and technical efficiency model for dairy farms in New South Wales and Victoria, determining the relative importance of each input in dairy production, the effects of key technology variables on farm efficiency, and overall farm profiles based on the efficiency rankings of dairy producers. Results show that production exhibits constant returns to scale and although feed concentration and the number of cows milked at peak season matter, the key determinants of differences in dairy farm efficiency are the type of dairy shed used and the proportion of irrigated farm area. Overall farm profiles indicate that those in the ‘high efficiency group’ largely employ either rotary or swing‐over dairy shed technology and have almost three times the proportional amount of land under irrigation.     

Interaction between crop insurance and technology adoption decisions: The case of wheat farmers in Chile

This paper examines relationships between crop insurance and input technology decisions among Chilean wheat farmers. Using nationwide farm‐level data, a bivariate probit model is estimated. We investigate the extent to which the adoption of production input technologies is associated with farmers’ participation in the insurance program. We find that relationships between insurance and technology decisions are significant only for family farmers. In particular, there is a negative relationship between participation in the insurance program and the adoption of modern irrigation. Interpretations based on the role of input technologies on insurance adoption and adverse selection behaviours are discussed.     

Improving the speed of adoption of agricultural technologies and farm performance through farmer groups: evidence from the Great Lakes region of Africa

The article examines the effect of membership in farmer groups (MFG) on adoption lag of agricultural technologies and farm performance in Burundi, the Democratic Republic of Congo and Rwanda. We use duration and stochastic production frontier models on farm household data. We find that the longer the duration of MFG, the shorter the adoption lag and much more so if combined with extension service delivery. Farmer groups function as an important mechanism for improving farm productivity through reduced technical inefficiency in input use. We discuss policy implications under which farmer groups are a useful channel to reduce adoption lag, and the means through which improved farm performance can be achieved.     

Efficiency and technical progress in traditional and modern agriculture: evidence from rice production in China

Productive efficiency for Chinese hybrid and conventional rice production is estimated using a dual stochastic frontier efficiency decomposition model. Results reveal significant differences in technical and allocative efficiency between conventional and hybrid rice production, and indicate significant regional efficiency differences in hybrid rice production, but not in conventional rice production.     

Land Tenure,Tenure Security and Farm Efficiency: Panel Evidence from the Philippines

This article tests the relationships among formalised property rights, land tenure contracts and productive efficiency in farming. Using four rounds of panel data from 230 rice farms in the Philippines, we measure the effects of land tenure arrangements on farm efficiency using a stochastic production frontier model. We test for the allocative efficiency of observed land rental markets. We also test how land tenure security affects farmers' investment decisions. Results suggest that, despite the presence of formalised titles, the rental market remains inefficient at allocating land. In contrast, the unformalised tenure contracts used by farmers appear to provide tenure security.     

Effect of modern rice varieties and irrigation on household income distribution in Nepalese villages

Since high-yielding modern rice varieties (MVs) are adopted only in favorable production environments, significant regional productivity differentials have emerged in Nepal. This study explores the distributional consequences of such differential MV adoption based on an intensive survey of favorable and unfavorable villages. We found that MV adoption increased returns to land but decreased family labor earnings from rice production, as it facilitated the substitution of hired for family labor. As a result, the differential MV adoption did not significantly worsen the household income distribution according to the results of the counterfactual Gini decomposition analysis.     

Production Contracts and Productivity in the U.S. Hog Sector

This article measures the impact of contracting on partial and total factor productivity and the production technology of U.S. hog operations. A sample selection model accounts for the fact that unobservable variables may be correlated with both the operators' decision to contract and farm productivity. Results indicate that the use of production contracts is associated with a substantial increase in factor productivity, and represents a technological improvement over independent production. Results also identify determinants of farmers' decisions to contract and other factors influencing farm productivity.     

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.     

Determinants of Grain Production and Technical Efficiency in China

A stochastic frontier production function is used to investigate the prospect to bring China's grain production and productivity to higher levels using a panel data set on 30 provinces from 1987–92. Given an irreversible trend of declining agricultural land, the only feasible way to raise total grain output is to increase land productivity if China does not want to rely on large-scale imports to feed her huge and still growing population. Considerable regional differences in grain yields suggest that there is still a vast potential for raising grain output. The short term solution is to use more land-augmenting inputs such as fertilisers and irrigation in the medium and low yield regions. However, the law of diminishing returns is in operation as more physical inputs are applied to shrinking land. Growth in grain output in the long term must rely on improvements in technical efficiency.     

典型家庭农场组织化程度对生产效率的影响分析

现阶段中国农业生产仍属于高投入、低效率的粗放模式,粮食安全缺乏可持续性.研究不同规模下不同组织形式的家庭农场生产效率,有助于揭示在中国农业高质量发展阶段中通过转变农业经营组织形式提高粮食生产效率,保障国家粮食安全的新路径.本文利用湖北武汉、安徽郎溪等地家庭农场的问卷调查数据,采用三阶段DEA方法比较纯种植与种养结合两类...     

Land size and productivity in the livestock sector: evidence from pastoral areas in China

This article explores the relationship between land size and productivity in the livestock sector. Household panel data from pastoral areas in northwestern China were analysed. Results suggest an inverse relationship (IR) between land size and the number of livestock per ha. IR can be largely explained by labour input intensity, which is negatively correlated with land size. We find that household’s labour demand is not separable from household’s labour supply and households’ decisions to rent land and hire labour for grazing are significantly related to the labour–land endowment ratio. These findings are consistent with the Chayanovian explanation that labour input intensity varies with farm size due to unobserved interhousehold variation in shadow wage rates. In addition, participation in the labour market does not significantly influence the IR for the employer, while the practice of land renting reduces, but does not eliminate, the IR for the lease. These findings point towards the potential for using factor markets to optimise pasture‐based livestock production scale, and the need to promote the factor market development to achieve efficiency in resource use.     

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.     

ADOPTION OF MODERN VARIETIES AND FERTILIZER USE ON RICE IN THE EASTERN TARAI OF NEPAL

Factors influencing the adoption of MV (modern variety) rices and fertilizer in the Tarai of southeastern Nepal were examined through multivariate probit (varietal adoption) and tobit (fertilizer adoption and use rates) regression models. This study reaffirms the finding that the adoption of modern rice technology is highest where irrigation exists. Tenure status and access to credit were significantly related to varietal adoption but family and farm size and the operator's education were not. Similar variables, in addition to fertilizer price, influenced the probability of fertilizer adoption and use rates on rice.     

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.     

Climate-resilient practices and welfare impacts on rice-cultivating households in Vietnam: Does joint adoption of multiple practices matter?

Farmers have a long history of adjusting their production practices in response to changing production conditions. Using a multinomial endogenous treatment effects model that accounts for observable and unobservable heterogeneity, this study investigates the adoption and welfare impacts of climate-resilient practices on Vietnamese rice-cultivating households. We found evidence of clear and positive welfare impacts from the adoption of canal irrigation (CI) and the joint adoption of agricultural conservation practices (CP) and CI as the main adaptation strategies to increase water stress. More importantly, although farmers with access to CI systems obtained the highest returns, the joint adoption of multiple practices still had substantially high adoption rates and significantly positive effects on rice yield, rice revenue and household income. Our findings indicate that farms' and farmers' characteristics, market information and climatic conditions are generally the main factors driving rice farmers' decisions to adopt climate-resilient technologies, both individually and jointly. Follow-up policy interventions should focus on improving CI systems and promoting the joint adoption of climate-resilient technologies to improve rice farmers' well-being and enhance their resilience capacity to cope with incoming climatic uncertainty.     

Technical efficiency in the Spanish agrofood industry

This study estimates frontier production functions with cross-section data lor the Spanish agrofood industry by using deterministic and stochastic parameuic approaches. We compute the individual technical efficiency for each firm, compare the results and explain the relationship between technical efficiency and other relevant quantitative variables. The results indicate that the Spanish agrofood industry has a level of efficiency between 68% and 93%; which means that it is potentially capable of increasing production without increasing its Consumption of inputs. This efficiency level is positively related to factor productivity and unitary labour costs.