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.     

Eco‐efficiency of high‐yielding variety rice cultivation after accounting for on‐farm environmental damage as an undesirable output: an empirical analysis from Bangladesh

This study computes the eco‐efficiency of high‐yielding variety (HYV) rice production by including an on‐farm environmental damage index (OFEDI) as an undesirable output using data envelopment analysis. It then identifies its determinants by applying an interval regression procedure on a sample of 317 farmers from north‐western Bangladesh. Results reveal that the mean level of the OFEDI‐adjusted production efficiency (i.e. eco‐efficiency) is 89 per cent, whereas ignoring OFEDI adjustment (i.e. with OFEDI = 0) reduces the mean level of efficiency to 69 per cent, implying that the production of undesirable output or on‐farm environmental damage induces an efficiency loss of 20 per cent with significant differences across regions. The proportion of farmers’ income from HYV rice agriculture, land ownership, extension services and socio‐environmental living standard are the significant determinants of improving eco‐efficiency. Policy implications include investments in extension services and land reform measures to increase land ownership, which will synergistically improve eco‐efficiency of HYV rice production in Bangladesh.     

Is Environmentally Friendly Agriculture Less Profitable for Farmers? Evidence on Integrated Pest Management in Bangladesh

Concerns about the sustainability of conventional agriculture have prompted widespread introduction of integrated pest management (IPM), an ecologically based approach to control harmful insects and weeds. IPM is intended to reduce ecological and health damage from chemical pesticides by using natural parasites and predators to control pest populations. Since chemical pesticides are expensive for poor farmers, IPM offers the prospect of lower production costs and higher profitability. However, adoption of IPM may reduce profitability if it also lowers overall productivity or induces more intensive use of other production factors. On the other hand, IPM may actually promote more productive farming by encouraging more skillful use of available resources. Data scarcity has hindered a full accounting of IPM's impact on profitability, health, and local ecosystems. Using new survey data, this paper attempts such an accounting for rice farmers in Bangladesh. We compare outcomes for farming with IPM and conventional techniques, using input-use accounting and conventional production functions. All of our results suggest that the productivity of IPM rice farming is not significantly different from conventional farming. Since IPM reduces pesticide costs with no countervailing loss in production, it appears to be more profitable than conventional rice farming. Our interview results also suggest substantial health and ecological benefits. However, externality problems make it difficult for farmers to adopt IPM individually. Without collective adoption, neighbors' continued reliance on chemicals to eliminate pests will also kill helpful parasites and predators, as well as expose IPM farmers and local ecosystems to chemical spillovers from adjoining fields. Successful IPM adoption may therefore depend on institutional support for collective action.     

Farmers’ perceptions and management of risk in rice/shrimp farming systems in South-West Coastal Bangladesh

Farmers in Bangladesh face considerable risk due to fluctuations in biophysical and economic conditions, but the response to these risks is poorly understood. In particular, there is a need to better understand the endogenous management of risk in the rice/shrimp farming systems that have emerged in the inner coastal zone of Bangladesh. This paper draws on a case study of a typical rice/shrimp farming village in Khulna District to explore: (a) farmers’ perceptions of risks and their management responses, (b) risk-return trade-offs within small-, medium-, and large-farm households, and (c) the role of other farm and non-farm activities in mitigating risks to household livelihoods. Farm-level data were collected through a reconnaissance survey, a village census, household case studies, and a sample survey of 73 households. Representative farm budgets were constructed for the three farm-size classes. The key performance indicators calculated were gross margin (GM), net income (NI), and GM per workday of family labour. The riskiness of the rice/shrimp system was assessed for each farm type using farmers’ estimates of low, normal, and high yields and prices to specify triangular distributions. Cumulative distribution functions (CDFs) for GM, NI, and GM per workday were generated. A whole-farm economic analysis was also conducted to assess the relative contributions of different sources of income for each farm type. With access to saline water for shrimp farming in the dry season and fresh water for rice in the wet season, farmers have developed and progressively adapted an alternating rice/shrimp farming system that has minimised the trade-offs between the two crops and provides a good return to household and village resources for all farm types. The system is subject to significant production and market risks, especially the shrimp component. However, farmers have clearly perceived these risks and ameliorated them through a range of production, marketing, and management strategies. With these risk management practices, the rice/shrimp cropping system is economically viable, given the current variation in yields and prices. The greater risk associated with the shrimp component was offset by the renewed stability of the rice component over the past decade, and the risks of the whole cropping system were offset by other farm and non-farm sources of livelihood. Development interventions need to work with farmers to provide further options (suitable rice varieties, solutions to shrimp disease, improved village and transport infrastructure) if this resilience is to be maintained.     

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.     

基于非同质DEA的稻虾共作土地经营模式成本效率分析

研究目的:探究实践中稻田综合种养这一土地经营模式相对于传统的水稻单作是否是成本有效的,以及哪些因素妨碍了这一土地经营模式效果的进一步提升.研究方法:利用湖北省荆州市和潜江市2018年稻虾共作这一稻田综合种养典型模式的农户调研数据,采用非同质决策单元的效率测算方法和效率损失模型,在计算农户亩均成本收益的基础上,分析稻虾共作和水稻单作模式下农户的成本效率.研究结果:(1)稻虾共作户的成本效率(0.376)略高于水稻单作户(0.336),但二者都处于较低水平;(2)农户成本效率与土地经营规模呈"倒U型"关系,土地细碎化、人力资本和社会资本的不足、合作社流于形式是引起农户效率损失的重要原因.研究结论:稻虾共作的土地经营模式能够保证水稻产量,但增效作用有限.通过适度扩大土地经营规模、提高农户的人力资本和社会资本等来消除效率损失,可大幅(60%以上)降低单位生产成本,助力农户提质增效.     

Effects of intercropping rice and water spinach on net yields and pest control: an experiment in southern China

Strategies encouraging the use of fewer agrochemicals while maintaining high yield are highly demanded for smallholder rice farmers. Intercropping helps to suppress pests and disease in upland farming systems. However, information on the role of intercropping in pest suppression and crop productivity in irrigated rice farming systems is sparse. To explore the possibility of establishing diversified agriculture management strategy that requires lower agrochemical inputs, a field study was conducted to evaluate the effect of rice and water spinach intercropping on the occurrence of pests, disease, and land-use efficiency. Results demonstrated that the occurrence of rice blast disease, sheath blight disease, and Cnaphalocrocis medinalis was substantially lower than pure stands. Compared with rice monoculture, the tiller number, net photosynthetic rate, and leaf chlorophyll content were significantly increased in rice at the edge rows adjacent to water spinach in intercropping. Intercropping increased the per unit area yield of rice without significant reduction in that of water spinach. Land equivalent ratio (LER) was 1.13, showing that intercropping was 13% more productive than rice monocropping. Net income for intercropping was 5.04 times higher than for rice monocropping. These findings suggest that rice and water spinach intercropping is a viable alternative for sustainable rice production with a small farming scale in southern China.     

Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea

Smallholder farming systems in Papua New Guinea are characterised by an integrated set of cash cropping and subsistence food cropping activities. In the Highlands provinces, the subsistence food crop sub-system is dominated by sweet potato production. Coffee dominates the cash cropping sub-system, but a limited number of food crops are also grown for cash sale. The dynamics between sub-systems can influence the scope for complementarity between, and technical efficiency of, their operations, especially in light of the seasonality of demand for household labour and management inputs within the farming system. A crucial element of these dynamic processes is diversification into commercial agricultural production, which can influence factor productivity and the efficiency of crop production where smallholders maintain a strong production base in subsistence foods.
In this study we use survey data from households engaged in coffee and food crop production in the Benabena district of Eastern Highlands Province to derive technical efficiency indices for each household over two years. A stochastic input distance function approach is used to establish whether diversification economies exist and whether specialisation in coffee, subsistence food or cash food production significantly influences technical efficiency on the sampled smallholdings.
Diversification economies are weakly evident between subsistence food production and both coffee and cash food production, but diseconomies of diversification are discerned between coffee and cash food production. A number of factors are tested for their effects on technical efficiency. Significant technical efficiency gains are made from diversification among broad cropping enterprises.     

Cost Structure and Vertical Integration between Farming and Processing

In several food‐producing sectors, we observe vertical integration between the farming and processing stages. The salmon industry, which has motivated this paper, has seen a rise in large vertically integrated companies over the last decade, with direct ownership of production activities including hatcheries, fish processing and exporting. Both the farming and processing stages have become more capital intensive, which has led to a steeper U‐shaped average cost (AC) curve. In this paper we present a theoretical link between this technological shift and vertical integration: in a repeated game model of relational contracting, we show that when the AC curve is sufficiently steep, then processors and farmers are more likely to vertically integrate. The reason is that steep AC curves make it costly to deviate from the optimal production scale, which in turn makes processors more vulnerable to hold‐up and opportunistic behaviours from its suppliers.     

An institutional and policy framework to foster integrated rice–duck farming in Asian developing countries

Asia has accounted for the vast majority of the world's rice and meat-duck production. In the integrated rice–duck farming (IRDF) system, ducklings are released into rice paddies in order to maximize the use of renewable resources in a closed-cycle flow of nutrients during rice vegetation periods. Rice–duck farming used to be widely adopted in tropical and subtropical eastern Asian countries, but has remained unpopular in the wake of prevailing agricultural productivism characterized by specialization, intensification, mechanization and excessive dependence on agrochemicals. This paper sets out institutional pathways that can redevelop IRDF in Asia. These include organic food certification systems, organic farmers' cooperatives, community-wide organic farming, localized technical extension and educational services, and between-farm rice–duck integration. A comprehensive package of these institutional tools would further expedite the expansion of IRDF particularly in low-income Southeast Asia where the rice or duck farming landscape is overwhelmingly dominated by smallholders.     

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.     

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.     

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.     

Factors influencing hybrid rice adoption: a Bangladesh case

As rice constitutes the major share in cereal consumption in South and East Asian countries that ranges from as low as 40 per cent in India to 97 per cent in Myanmar, to ensure food security, governments in these countries are encouraging farmers to adopt hybrid rice. This is mainly because hybrid rice provides a yield gain of 15–20 per cent over conventionally bred varieties in general. Yet, despite strenuous government efforts, farmers’ adoption rates have remained low in India, Bangladesh and Vietnam compared with China. Although studies often claim that higher seed costs and inferior grain quality are the major factors limiting hybrid rice adoption, very few studies examine the importance of socio‐economic factors and infrastructure in the adoption of hybrid rice. Using Bangladesh as a case, a comparative analysis has been made on the adoption of hybrid and modern varieties relative to traditional rice varieties and land allocation to these varieties. Econometric results indicate that general land characteristics, loan facilities and general infrastructure, such as roads, irrigation facilities and the availability of government‐approved seed dealers, significantly influence the adoption of hybrid and modern rice varieties and land allocation to these varieties compared with traditional varieties.     

Productivity improvement in Korean rice farming: parametric and non‐parametric analysis†

The published empirical literature on frontier production functions is dominated by two broadly defined estimation approaches – parametric and non‐parametric. Using panel data on Korean rice production, parametric and non‐parametric production frontiers are estimated and compared with estimated productivity. The non‐parametric approach employs two alternative measures based on the Malmquist index and the Luenberger indicator, while the parametric approach is closely related to the time‐variant efficiency model. Productivity measures differ considerably between these approaches. It is discovered that measures of efficiency change are more sensitive to the choice of the model than are measures of technical change. Both approaches reveal that the main sources of growth in Korean rice farming have been technical change and productivity improvements in regions of the country that have been associated with low efficiency.     

The Effects of Direct Payments on Technical Efficiency of Irish Beef Farms: A Stochastic Frontier Analysis

The 2003 Mid‐Term Review of the CAP sought to refocus the EU's farm support policy to foster a more competitive and market‐orientated agricultural sector. The foundation of this reform comprised the introduction of decoupled payments to farmers, replacing the EU's previous system of supports that were directly linked to production of designated crops and livestock. This paper explores the effect of coupled payments and their subsequent replacement by decoupled support, on the technical efficiency of specialist beef farms in Ireland. Given the high reliance of beef farmers in Ireland on CAP payments, the decoupling of payments has been especially important for the sector. A stochastic production frontier is estimated using a panel dataset comprising detailed accountancy data for Irish beef farms between the years 2000 and 2013. Our results indicate that technical efficiency in the beef farming sector has been consistently poor, with an average efficiency score of only 0.53 during the period analysed. However, we found that direct income received in the form of coupled payments had a positive impact on farm efficiency, and that this positive effect was maintained after their replacement with decoupled income support.     

农牧户兼业、规模异质与生产技术效率变化*——基于5省452户细毛羊养殖户的实证研究

［目的］利用5省452户细毛羊养殖户调研数据，分析规模异质下农牧户兼业化对细毛羊生产技术效率的影响。［方法］文章采用SBM模型和Tobit模型分别测算了农牧户细毛羊生产技术效率及不同规模下兼业化对生产技术效率的影响。［结果］（1）在其他条件不变的情况下，兼业化会显著促进农牧户生产技术效率的提升，且非农兼业程度越强对细毛羊生产技术效率的正向影响作用越大。（2）分规模来看，农业兼业形式对散养户、中规模和大规模养殖户生产技术效率具有负向影响，对小规模养殖户生产技术效率具有正向影响，但影响均不显著； 由于非农兼业形式在散养户和大规模养殖户中所带来的“劳动力流失效应”与“收入投资效应”的强度的不同，对散养户生产技术效率具有显著的负向影响，对大规模养殖户生产技术效率具有显著的正向影响。（3）受教育程度、养殖年限、养殖方式、是否接受技术培训均对养殖户总体生产技术效率具有显著的正向影响，年龄变量对养殖户总体生产技术效率具有显著的负向影响。［结论］应全面推进细毛羊标准化规模养殖进程，加大细毛羊养殖技术培训的开展与推广，加强对养殖专业合作社的法律宣传和政策引导，完善国家层面的畜牧养殖的扶持政策。     

Sustainability of fish pond culture in rural farming systems of Central and Western Cameroon

In Sub-Saharan Africa, fish ponds are often an integral part of farming systems but have suffered from a lack of viability and sustainability. The present study aims to understand the strategies used by fish farmers to overcome economic and environmental constraints. In 2008 and 2009, fish farmers were surveyed in Central and Western Cameroon, and the fish production systems were classified by cluster analysis. Four broad types were identified according to the complexity of household operations. The development of extensive systems (large-scale and low-input) in rural areas of central Cameroon is induced mainly by abundant available land. For semi-intensive systems in both regions (small-scale and high-input in the Western Region, large-scale and high-input in peri-urban areas of the Central Region), horizontal integration is not sufficient to make fish production profitable and sustainable. More intensive fish farms tend towards vertical integration, in which farmers establish close links with input suppliers. Main causes of low productivity of semi-intensive systems (1–2?t/ha/yr) are both lack of knowledge of fish farming principles by farmers and lack of technical improvement by extension agents and researchers which need to consider the local complexity of farming systems to develop and intensify fish production. The adaptation of development strategies to socio-economic and environmental contexts is a necessity to hope for an increase in fish pond aquaculture production in Africa.     

中国大宗淡水鱼养殖户技术效率、TFP增长及分解——基于25个省份微观调查数据

本文基于2011—2017年养殖户的微观调查数据,利用超越对数的随机前沿生产函数实证分析了大宗淡水鱼养殖户的技术效率、TFP增长及其分解。研究发现,(1)大宗淡水鱼养殖户的技术效率为0.827,表明养殖户的技术利用水平还存在较大的改进空间;(2)不同养殖规模对养殖户技术效率影响不显著,但专业化养殖对技术效率具有显著的正向影响;(3)养殖户TFP年均增长率为3.29%,且呈持续增长趋势;(4)养殖户TFP增长主要来源于技术进步,但技术效率的下降阻碍了TFP的增长;(5)技术效率和TFP增长都具有明显的区域性特征,总体表现为从西部到东部递减的趋势。     

Does mixed crop‐livestock farming lead to less diversified diets among smallholders? Evidence from Laos

Malnourishment continues to remain a challenge in developing countries. As the undernourished are largely smallholder farmers, it is widely assumed that farm diversification and mixed crop‐livestock agricultural systems can help alleviate this problem. However, empirical evidence in this context is limited. Hence, we use a two‐year panel's data from Laos to examine whether farm production diversity as well as a mixed crop‐livestock farming system improves household dietary diversity among smallholder farmer. The results from the fixed effects regression indicate that although farm production diversity does lead to a higher dietary diversity, the effect diminishes with continued farm diversification. The counterfactual analysis from the endogenous switching regression reveals that mixed crop‐livestock farming systems do not necessarily enhance dietary diversity. However, we further find that purchasing food from the markets plays an important role in enhancing the dietary diversity of rural smallholder farmers.