scholarly journals Production risk, technical efficiency, and input use nexus: Lessons from Bangladesh aquaculture

2021 ◽  
Vol 52 (1) ◽  
pp. 57-72
Author(s):  
Md. Akhtaruzzaman Khan ◽  
Ratna Begum ◽  
Rasmus Nielsen ◽  
Ayoe Hoff
Keyword(s):  
Technical Efficiency ◽  
Production Risk ◽  
Input Use

scholarly journals Measuring Technical Efficiency of Wheat Farms in Punjab, Pakistan: A Stochastic Frontier Analysis Approach

2019 ◽  
Vol 7 (1) ◽  
pp. 115
Author(s):  
Muhammad Aamir Shahzad ◽  
Amar Razzaq ◽  
Muhammad Aslam ◽  
Muhammad Faisal Gulzar ◽  
Muhammad Asad ur Rehman Naseer ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Improvement ◽  
Panel Survey ◽  
Frontier Analysis ◽  
Input Use ◽  
The Mean ◽  
Potential Maximum ◽  
Management Issues

The wheat productivity in Punjab is less than the potential maximum due to imbalanced input use and farm management issues. Many studies have attemped to estimate technical efficiency of wheat crops using different techniques. However, most of them used limited datasets that focus on only a few districts. This study study uses a comprehensive dataset which is representive of Punjab province. We used farm-level panel survey data collected from 1581 farms in 17 districts of Punjab from 2005-06 to 2007-08. The technical efficiency of the wheat farms was analyzed using Stochastic Frontier Analysis (SFA) approach. Further, we identified the determinants of (in)efficiency using the same method. The results show that the mean technical efficiency of wheat farmers in Punjab is 84 percent indicating a considerable room for efficiency improvement. Further, the results indicate that technical efficiency could be improved by educating the younger farmers, building road infrastructure, and improving farmers’ access to essential inputs. The study supports the argument that wheat farmers are less technically efficient in Punjab, Pakistan.

scholarly journals Input-use Efficiency of Irrigation Farmers in Southwest Nigeria

2020 ◽  
pp. 1-12
Author(s):  
F. M. Oluwatusin ◽  
A. O. Kolawole ◽  
O. A. Aturamu ◽  
K. A. Abdu-Raheem
Keyword(s):  
Water Use Efficiency ◽  
Technical Efficiency ◽  
Water Use ◽  
Sprinkler Irrigation ◽  
Household Size ◽  
Descriptive Statistics ◽  
Tobit Regression ◽  
Input Use ◽  
Southwest Nigeria ◽  
Use Efficiency

This study estimated the technical and water-use efficiency of irrigation farmers in Southwest Nigeria. A multistage sampling procedure was employed to interview one hundred and eighty-five irrigation farmers. Descriptive statistics, Data Envelopment Analysis Program (DEAP) and Tobit regression model were used to describe and analyze the determinants of inefficiency among irrigation farmers. The result of the descriptive statistics showed that there were more male farmers (82.2%) with a mean household size of 3.7. The mean area of irrigated land was 1.29ha. with about 84 percent of farmers cultivating on rented land. The average income from irrigation farming was N 38,650.27 per month. The sprinkler irrigation (Centre Pivot) was used by 85.4% of the farmers. The water fee for farmers was N 10,000 and the average cost of diesel for irrigating their farmland was estimated to be N 34,400 per production. The variation in input use and the output produced is considerably large. The DEAP results showed that on average, the farmers achieved only 79% Constant Return to Scale (CRS) technical efficiency, 85% Variable Return to Scale (VRS) technical efficiency and 22% water use efficiency. The Tobit regression results showed that farmers’ characteristics like age (0.008), household size (0.048), area of land irrigated (0.000), income (0.075) and drip irrigation method (0.041) were significant under CRS, whereas gender, education, experience, labour and sprinkler irrigation method were not significant. Under VRS model, significant variables includes age (0.032), gender (0.003), education (0.080), experience (0.059) and area of land irrigated (0.000), while gender (0.004), household size (0.086), education (0.027), experience (0.045), area of land irrigated (0.000) and labour (0.089) were significant for sub-vector VRS. It appears that farmers have little incentives to use water in an efficient way. In this sense, a public-private partnership could trigger better management of irrigation facilities and efficient water use among farmers.

scholarly journals Risk Adjusted Production Efficiency of Maize Farmers in Ethiopia: Implication for Improved Maize Varieties Adoption

2017 ◽  
Vol 5 (9) ◽  
pp. 1099
Author(s):  
Sisay Diriba Lemessa ◽  
Molla Alemayehu Yismawu ◽  
Megersa Debela Daksa ◽  
Mulugeta Damie Watabaji
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Stochastic Frontier Approach ◽  
Technical Inefficiency ◽  
Maize Production ◽  
Production Risk ◽  
Access To Credit ◽  
Maize Varieties

This study analyzes the technical efficiency and production risk of 862 maize farmers in major maize producing regions of Ethiopia. It employs the stochastic frontier approach (SFA) to estimate the level of technical efficiencies of stallholder farmers. The stochastic frontier approach (SFA) uses flexible risk properties to account for production risk. Thus, maize production variability is assessed from two perspectives, the production risk and the technical efficiency. The study also attempts to determine the socio-economic and farm characteristics that influence technical efficiency of maize production in the study area. The findings of the study showed the existence of both production risk and technical inefficiency in maize production process. Input variables (amounts per hectare) such as fertilizer and labor positively influence maize output. The findings also show that farms in the study area exhibit decreasing returns to scale. Fertilizer and ox plough days reduce output risk while labor and improved seed increase output risk. The mean technical efficiency for maize farms is 48 percent. This study concludes that production risk and technical inefficiency prevents the maize farmers from realizing their frontier output. The best factors that improve the efficiency of the maize farmers in the study area include: frequency of extension contact, access to credit and use of intercropping. It was also realized that altitude and terracing in maize farms had influence on farmer efficiency.

scholarly journals Effects of Insurance Adoption and Risk Aversion on Agricultural Production and Technical Efficiency: A Panel Analysis for Italian Grape Growers

Economies ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 20
Author(s):  
Simone Russo ◽  
Francesco Caracciolo ◽  
Cristina Salvioni
Keyword(s):  
Technical Efficiency ◽  
Crop Insurance ◽  
Stochastic Frontier ◽  
Risk Averse ◽  
Stochastic Frontier Approach ◽  
Intermediate Inputs ◽  
Input Use ◽  
Farm Accountancy Data Network ◽  
Using Data ◽  
Profit Maximisation

This article aims to evaluate the effect of insurance on production, technical efficiency, and input use of Italian specialised-quality grape growers. A panel instrumental variable stochastic frontier approach is applied over the years 2008–2017 using data from the Farm Accountancy Data Network. The results show the requirement to correct for the endogeneity that stems from insurance adoption. Insurance has an enhancing effect on production and efficiency and reduces the use of intermediate inputs. It suggests that insurance helps to diminish the risk-averse farmers’ suboptimal input use due to the presence of uncertainty. Crop insurance leads risk-averse farmers to behave as if they were risk neutral and employs the profit-maximising input vector. Therefore, by reducing the risks linked to the uncertainty of outcomes, crop insurance leads grape growers to go in the direction of profit maximisation.

scholarly journals Technical Efficiency and Production Risk of Rice Farms under Anchor Borrowers Programme in Kebbi State, Nigeria

2019 ◽  
pp. 1-12
Author(s):  
A. H. Kara ◽  
M. N. Shamsudin ◽  
Z. Mohamed ◽  
I. B. Latiff ◽  
K. W. K. Seng
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Policy Option ◽  
Risk Averse ◽  
Technical Inefficiency ◽  
Production Risk ◽  
Cultivation Technique ◽  
Land Cultivation ◽  
The Mean

This study estimates technical efficiency and production risk of rice farms under Anchor Borrowers Programme (ABP) in Kebbi State, Nigeria. The study employed Stochastic Frontier Production (SFA) with flexible risk specifications to a sample of 231 rice producers surveyed in 2016 production season. The findings shows that seed, fertilizer, agrochemicals and labour inputs influenced rice output positively. The production technology characterizing rice farms in the study area exhibit increasing returns to scale. Fertilizer and agrochemicals are estimated to decrease variance of the value of output while seed and labour are estimated to increase the variance of the value of output. This implies that a risk-averse farmer will use more of fertilizer and agrochemicals and less of seed and labour than a risk neutral farmer. The mean technical efficiency estimates was 85.3 percent. Several characteristics of the farmers such as education, farming experience, extension contact, land cultivation technique and planting technique significantly decrease technical inefficiency of the farmers. The study concludes that, on the average 14.7 percent of potential output is lost due to technical inefficiency and production risk in inputs and recommends the use of best farm practice to produce rice efficiently. Policy option should also consider the incorporation of production risk in technical efficiency analysis if the inputs are non-neutral in risk.

Production under input endogeneity and farm-specific risk aversion: evidence from contract farming and Bayesian method

2019 ◽  
Author(s):  
Ashok K Mishra ◽  
Anthony N Rezitis ◽  
Mike G Tsionas
Keyword(s):  
Technical Efficiency ◽  
Bayesian Method ◽  
Developing Economies ◽  
Estimation Method ◽  
Risk Attitudes ◽  
Contract Farming ◽  
Production Risk ◽  
Level Data ◽  
Missing Markets ◽  
Risk Reducing

Abstract Contract farming (CF) has been offered as a solution to missing markets in developing economies. However, little is known as to how the presence of CF affects production risk, technical efficiency and risk attitudes of the smallholder. This study investigates production risk, technical efficiency, output price uncertainty and risk attitudes of contract and independent farmers. Using a Bayesian estimation method and farm-level data from Nepal, we find that contract farmers are more risk-averse than the independent farmers. Contract farmers can increase output by reducing the scale more than independent farmers. We find that labour and capital are risk-reducing, while land and other inputs are risk increasing for both contract and independent farmers. Finally, independent growers consistently over-predict output prices.

scholarly journals   Technical efficiency and total factor productivity in Czech agriculture

2012 ◽  
Vol 58 (No. 4) ◽  
pp. 147-156 ◽  
Author(s):  
L. Čechura
Keyword(s):  
Technological Change ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Systemic Effect ◽  
Management Model ◽  
Factor Productivity ◽  
Key Factors ◽  
Economic Changes ◽  
Input Use ◽  
The Individual

The paper deals with the analysis of technical efficiency and the total factor productivity (TFP) in Czech agriculture. The aim is to identify the key factors determining the efficiency of input use and the TFP development. The Fixed Management model is used for the estimation of technical efficiency and the construction of TFP for the total agriculture and its individual branches. The results show that technical inefficiency is an important phenomenon in Czech agriculture and its individual branches. The TFP development is determined by all components, i.e., technical efficiency, scale effect, technological change and management. Their contributions differ intrasectorally and intersectorally, and also in time. Finally, the developments in the individual branches are characterized by idiosyncratic factors, as well as the systemic effect, especially in the animal production. The most important factors which determine both technical efficiency and TFP are the factors connected with institutional and economic changes, in particular a dramatic increase in the imports of meat and increasing subsidies.  

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