scholarly journals Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act

2006 ◽  
Vol 38 (1) ◽  
pp. 213-224 ◽  
Author(s):  
Denis A. Nadolnyak ◽  
Stanley M. Fletcher ◽  
Valentina M. Hartarska
Keyword(s):  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
The United States ◽  
Farm Size ◽  
Quota System ◽  
Frontier Analysis ◽  
Farm Level ◽  
Peanut Production ◽  
Growing Conditions

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota's transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator's education and age, were also important for efficiency.

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals Factors Affecting Technical Efficiency of Rubber Smallholders in Negeri Sembilan, Malaysia

2017 ◽  
Vol 9 (5) ◽  
pp. 226
Author(s):  
A. Aliyu ◽  
Ismail Abd Latif ◽  
Mad Nasir Shamsudin ◽  
Nolila Mohd Nawi
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Likelihood Function ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Farm Size ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
The Mean ◽  
Size Task

The main objective of the study was to figure out, identify and analyse the technical efficiency of rubber smallholders’ production in Negeri Sembilan, Malaysia. Multi-stage data collection procedures, comprising both purposive and random sampling techniques, were used. Using structured questionnaires, farm-level information with cross sectional data from five districts of Negeri Sembilan, were employed in the study. A parametric Stochastic Frontier Analysis (SFA), with a transcendental logarithmic (Translog) functional form, was used in the study. The descriptive statistics results revealed that, the mean rubber yield was 5465 kg while that of the seven inputs used include 1.2 ha, 602.7, 2.33, 363.6 kg, 13.0 lit, 13.2 man days and 2.47 respectively for farm size, task, farm tools, fertilizer, herbicides, labour and rubber clones.The inferential statistics showed that, the mean technical efficiency was found to be 0.73 with a standard deviation of 0.089. Thus, this translates that 27% accounted for technical inefficiency. Both the sigma square and gamma coefficients were found to be statistically significant at 1% level. The Log Likelihood Function (LLF) and the Log Rati (LR) test were found to be respectively 167.7 and 34.07. The results further revealed that, although none of the farms were found to be on the frontier, however, 9 farms were very near the frontier with efficiency score range between 0.90-0.99. And twenty (20) firms have range 0.80-0.90. Race, Tapping experience, household number and extension agent’s visits were found to be technically significant and are thus critical in determining technical efficiency of rubber smallholders in Negeri Sembilan, Malaysia.

scholarly journals Evaluation of Manufacturing Competitiveness of Hubei Province Based on Stochastic Frontier Analysis

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Weidong Gai ◽  
Lei Zhou ◽  
Chun Chen
Keyword(s):  
Manufacturing Industry ◽  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Hubei Province ◽  
Central China ◽  
Frontier Analysis ◽  
Industrial Enterprises ◽  
Promotion Policies ◽  
Manufacturing Competitiveness

The manufacturing level directly manifests the comprehensive strength of a country or region. Production efficiency provides an important metric of the competitiveness of the manufacturing industry. Based on the data of China’s industrial enterprises of 1999–2011, this paper estimates the production efficiency of manufacturing in Central China’s Hubei Province through stochastic frontier analysis (SFA) and thus characterizes the differences between prefectures of Hubei in manufacturing competitiveness. The results show that, on the prefecture level, Xianning and Wuhan saw a decline in manufacturing competitiveness, while Xiangfan and Xiaogan witnessed an increase in manufacturing competitiveness. To enhance local manufacturing competitiveness and make Hubei the forerunner and cornerstone of Central China, different prefectures should adopt different industrial promotion policies, pay attention to cultivating the technological innovation capabilities of enterprises, and strengthen the integration of production, education, and research.

scholarly journals Farm Structure And Efficiency In The Hungarian Agriculture

2015 ◽  
Vol 4 (2) ◽  
pp. 51-56
Author(s):  
Orsolya Tóth ◽  
István Takács
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Farm Size ◽  
Empirical Literature ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Legal Forms ◽  
On Farm

Abstract It has long been the subject of empirical researches to examine the technical efficiency on farm (micro) level. Two main methods are most often used in the empirical literature: the non-parametric Data Envelopment Analysis (DEA) based on linear programming, and the Stochastic Frontier Analysis (SFA) introduced by Aigner, Lovell and Schmidt (1977). The present study aimed to investigate the technical efficiency of farms involved in agricultural activities in Hungary using the DEA-method and the data from the Hungarian FADN database. The technical efficiency was examined based on legal forms, farm size categories and the type of farming between 2001 and 2013.

scholarly journals Estimation of technical efficiency of Czech farms operating in less favoured areas

2019 ◽  
Vol 65 (No. 10) ◽  
pp. 445-453
Author(s):  
Tamara Rudinskaya ◽  
Tomas Hlavsa ◽  
Martin Hruska
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Agricultural Area ◽  
Farm Size ◽  
Identification System ◽  
Accounting Data ◽  
Frontier Analysis ◽  
The Impact

This paper deals with the technical efficiency analysis of farms in the Czech Republic. The empirical analysis provides an evaluation of technical efficiency with regard to the farm size, farm specialisation, and farm location. Accounting data of Czech farms from the Albertina database for the years 2011–2015 were used for the analysis. The data were classified by the utilised agricultural area and location of the farm expressed as a less favoured area type from the Land Parcel Identification System (LPIS) database. Research was conducted using the translogarithmic production function and Stochastic Frontier Analysis. The results indicate positive impact of farm size, expressed by utilised agricultural area, on technical efficiency. The analysis of the impact of farm specialisation on technical efficiency verified that farms specialised on animal production are more efficient. The lowest technical efficiency is shown by farms situated in mountainous Less Favoured Areas (LFAs), the highest technical efficiency by farms located in non-LFA regions.

Technical Efficiency (TE) in Malaysia Electric and Electronic Manufacturing Industry: A Stochastic Frontier Analysis (SFA) Approach

2021 ◽  
Vol 12 (1) ◽  
pp. 98-98
Author(s):  
Norayati Hashim ◽  
Mohd Fahmy Abdullah
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Industry ◽  
Stochastic Frontier Analysis ◽  
Developing Economies ◽  
Stochastic Frontier ◽  
Value Added ◽  
The United States ◽  
Average Growth ◽  
Frontier Analysis ◽  
Major Player

The Electric and Electronic (E&E) manufacturing industry is becoming more important for Malaysia economy that contributes to the Gross Domestic Product (GDP) and provide huge in job creation. Hence, real GDP grew at an average rate of 6.1% per year over 1970 to 2018 period, higher than the average growth of the advanced countries (OECD Economic Surveys: Malaysia 2019, 2019). Furthermore, Malaysia is a major player in the fast-expanding E&E market, of which major export destinations include Singapore, Hong Kong, the USA, PRC, Japan and Europe. In 2019, 37.8% of Malaysia total exports were from E&E industry, which accounted for RM372.67 billion worth of exports or 44.7 per cent of all manufacturing goods exported (MITI, 2019). However, the E&E manufacturing industry is fluctuating and was inconsistent in Malaysia (MITI, 2014). Furthermore, the external environment continued to be affected by global economic uncertainty in 2012, dampening demand for the E&E manufacturing industry exports to decrease by 2.5 percent to RM231.2 billion and had an impact on the labour market with total retrenchments increased by 35.2 percent to 7616, due mainly to higher layoffs in the manufacturing industry (MITI, 2012). This effect is due to the sovereign debt crisis in Europe, the United States (US) economic recovery was modest, dampened by both domestic and external weaknesses and the stagnant economy in Japan had an impact on the export performance. In addition that growing competition from manufacturers in developing economies such as China and ASEAN member countries, particularly in higher value-added assembly (Bank Negara Malaysia, 2012). Hence, Malaysia economic landscape year 2012 became more challenging to uncertainty affected by an increasingly competitive global environment. Keywords: Technical Efficiency, Electric and Electronics, Stochastic Frontier Analysis (SFA), Translog, Panel Data.

scholarly journals Efficiency Estimates and Rankings Employing Data Envelopment and Stochastic Frontier Analyses: Evaluating the Management of U.S. Public Colleges

2012 ◽  
Vol 4 (8) ◽  
pp. 444-452 ◽  
Author(s):  
G. Thomas Sav
Keyword(s):  
Public Management ◽  
Stochastic Frontier Analysis ◽  
Public Funding ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
The United States ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Truncated Normal ◽  
Using Data

This paper estimates and compares operating efficiencies of publicly owned associate degree granting colleges in the United States using data envelopment analysis (DEA) and stochastic frontier analysis (SFA). Comparisons are based on panel data for 698 colleges over four academic years, 2005-09. Included are both constant and variable returns to scale DEA estimates along with half and truncated normal inefficiency SFA estimates. The values 0.56 vs. 0.45 represent the largest mean DEA-SFA efficiency differential. DEA results indicate that 13% of colleges are fully (100%) efficient while SFA puts that percentage at only 1.7%. Comparisons of rankings based on efficiency performance generated a weak 0.65 correlation. Encouragingly, despite the financial turmoil initiated by the global crisis, the findings indicate that colleges have managed large efficiency gains over the four-year period. By 2008-09, DEA estimated efficiency increased to approximately 60%. Given continuing reductions in higher education public funding and increasing interest in public management reforms, the results should be of both managerial and public policy interest.

scholarly journals Measurement of Productivity and Efficiency of Potato Production in Two Selected Areas of Bangladesh: A Translog Stochastic Frontier Analysis

2013 ◽  
Vol 21 (1-2) ◽  
pp. 233-245 ◽  
Author(s):  
A Begum ◽  
MF Imam ◽  
MA Alam
Keyword(s):  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Potato Production ◽  
Farm Size ◽  
Cost Ratio ◽  
Aggregate Level ◽  
Frontier Analysis ◽  
Benefit Cost Ratio ◽  
Large Farmer ◽  
The Cost

Some partial analyses were used to determine the productivity of potato production. The per hectare potato production of the farmers of Lalmonirhat Sadar and Aditmari Upazila were 19897.88 and 21208.47 kg respectively. The benefit-cost ratio in Lalmonirhat Sadar and Aditmari Upazila were 1.52 and 1.56 respectively. The coefficient of farm size was positively significant in Aditmari in the inefficiency effect model, which meant large farmer was economically less efficient than small farmer. The sign of education was negative and significant, which indicates that inefficiency decreases with the increase of education in Aditmari Upazila. The economic efficiency varied from 81 to 99% at aggregate level, 97 to 99% in Lalmonirhat Sadar and 72 to 99% in Aditmari Upazila. The mean economic efficiencies were 98, 97 and 96% for Lalmonirhat Sadar, Aditmari Upazila and at aggregate, level respectively. There appeared to be 2, 3 and 4% economic inefficiencies for Lalmonirhat Sadar, Aditmari and all regions, respectively. This indicates that the cost of production could be reduced on an average by 4% keeping the output constant at the aggregate level.DOI: http://dx.doi.org/10.3329/pa.v21i1-2.16780 Progress. Agric. 21(1 & 2): 233 - 245, 2010

scholarly journals Technical Efficiency of Cassava Production in Ardo-Kola Local Government Area of Taraba State, Nigeria

2018 ◽  
Vol 6 (4) ◽  
Author(s):  
Emmanuel A. Zubairu ◽  
Andefikir D. Kasari ◽  
Abubakar U. Jongur
Keyword(s):  
Local Government ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Local Government Area ◽  
Maximum Likelihood Estimates ◽  
Farm Size ◽  
Extension Agents ◽  
Frontier Analysis ◽  
Cassava Production

— This study used stochastic frontier Analysis to estimate the technical efficiency of cassava production in Ardo-kola Local Government Area of Taraba state. A multi-stage sampling was employed in selecting 142 respondents in the study area. The maximum likelihood estimates of the stochastic frontier production function revealed that farm size, family labour, cassava cutting planting and fertilizer were significantly and positively related to cassava output. Technical efficiency (TE) scores ranged from 0.43 to 0.96 with a mean TE of 0.74, implying that there is a scope for increasing technical efficiency in cassava production by 0.26 in short run under current technology. The study proffered the following recommendations; That Cassava farmers should have access to extension agents to increase their probability of being productive and efficient, policy should be targeted to provide adequate training to extension agents to enhance their performance to their clientele.

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