Determinants of Cost Inefficiency of Maize Farming in Different Agro-climatic Regions of Sikkim, India

2020 ◽  
Vol 16 (2) ◽  
pp. 177-198
Author(s):  
Pradyut Guha ◽  
Tiken Das
Keyword(s):  
Cost Function ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Minimum Cost ◽  
Primary Data ◽  
Frontier Analysis ◽  
Farm Level ◽  
Climatic Regions ◽  
Cost Inefficiency

The present study makes an attempt to analyse farm level cost inefficiency of maize farming and its determinants in different agro-climatic regions of Sikkim. The primary data for the study were collected during the third and fourth quarter of 2018 from different agro-climatic regions of Sikkim. Both data envelopment and stochastic frontier analysis were used for measurement of the farm level inefficiency across different agro-climatic regions of the study area. Based on the Cobb–Douglas cost function for maize output, the article simultaneously estimated stochastic frontier cost function and examined the effect of exogenous factors on farm level cost inefficiency. The results of this study showed that, on an average, the farmer incurred cost which was 8 per cent to 72 per cent above the minimum cost defined by the best practice frontier. Further, cost inefficiency was relatively higher among the farmers in temperate agro-climatic region. Greater cost inefficiency seems to be directly associated with remoteness of farmland from input market. The study also found that the additional years of farming experience and farming in the rented plots were useful in reducing cost inefficiency.

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 EFISIENSI KEUNTUNGAN USAHATANI BAWANG MERAH DI KABUPATEN NGANJUK: PENDEKATAN STOKASTIK FRONTIER

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
FUAD HASAN
Keyword(s):  
Data Analysis ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Primary Data ◽  
Profit Function ◽  
Profit Efficiency ◽  
Frontier Analysis ◽  
Profit Potential

This study aims to determine the profit efficiency and potential profits-loss of shallot farming in Nganjuk Regency. Primary data was  collected by questionnaire guidance. The numbered of respondents are 90 farmer who came from four sub-districts are Sukomoro, Rejoso, Bagor, and Gondang. Data analysis used stochastic frontier analysis (SFA) with profit function. The result of analysed shows that the average of profit efficiency was 0.614 and the profit potential lost due to the inefficiency was Rp 17.567.025,32 / hectareKeywords: shallot, profit efficiency, profit-loss

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 Productivity growth and convergence: a stochastic frontier analysis

2015 ◽  
Vol 42 (2) ◽  
pp. 224-236 ◽  
Author(s):  
Catarina Moura e Sa Cardoso ◽  
Geetha Ravishankar
Keyword(s):  
Human Capital ◽  
Productivity Growth ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Human Capital Development ◽  
Regional Productivity ◽  
Content Type ◽  
Frontier Analysis ◽  
Capital Development

Purpose – The purpose of this paper is to assess the effect of human capital development on regional productivity growth and convergence in the Spanish provinces over the period 1991-2006. Design/methodology/approach – The stochastic frontier analysis (SFA) methodology is used to estimate production inefficiencies. This approach enables the assessment of the degree to which a given region’s observed output deviates from the maximal possible. Therefore, the resulting region specific productive efficiencies are modelled as outcomes of the level of human capital. A β-convergence equation for the regional efficiency levels is also estimated to detect any signs of regional catching-up. Findings – The results show that increasing levels of human capital development are associated with lower regional inefficiency. All levels of education contributed to reduce the inefficiency levels, however, secondary schooling played a stronger role than primary and even higher education. There is also evidence of regional convergence towards the best practice frontier through a process that is beneficially aided by human capital development. Originality/value – The paper combines the use of the SFA to study the effect of human capital on regional productivity with the estimation of a β-convergence equation for the obtained regional efficiency levels.

scholarly journals Assessment of Forest Personnel Performance in Akwa Ibom State, Nigeria

2021 ◽  
Vol 2 (1) ◽  
pp. 6-21
Author(s):  
Imaobong Ufot Nelson ◽  
Daniel E. Jacob ◽  
Enefiok Sunday Udo
Keyword(s):  
Stochastic Frontier Analysis ◽  
Tertiary Education ◽  
Stochastic Frontier ◽  
Secondary Data ◽  
The State ◽  
Working Environment ◽  
Primary Data ◽  
Frontier Analysis ◽  
Target Revenue ◽  
Structured Questionnaire

This study assesses the performances of forest personnel in Akwa Ibom State in meeting their target revenue for the state using qualitative and quantitative approaches. The primary data were obtained using a structured questionnaire, oral interviews, and direct observation, while the secondary data were obtained from all the 31 Divisions and the Directorate of Forestry in Akwa Ibom State. Data collected were analyzed using the descriptive and stochastic frontier analysis to assess efficiency The results obtained showed that the majority of the respondents were male (59.50%), in their economically active and productive age bracket (50.41), attended tertiary education (79.33%), were married (69.42%), had a family size of fewer than 5 members (71.90%), and received a monthly income of ₦41,000 - ₦50,000 (42.15%). Also, the majority of the respondents had been in service for 11 – 15 years (30.23%), resided in their stations (72.09%), and received various forms of in-training (65.12%) to enhance their effectiveness or performance. Most of the Uniformed Field staff patrolled their divisions daily with their superior visiting their divisions more than once a month. The majority (53.84%) of the Forest Officers had less than 10 years' experience and their technical efficiency ranged from 0.35 to 0.97. The study, therefore, recommends that a more conducive working environment should be provided for the forest personnel to be able to optimize their performances which would translate to increased revenue generation for the state.

scholarly journals Characteristics of High- and Low-Efficiency Hospitals

2017 ◽  
Vol 75 (4) ◽  
pp. 454-478 ◽  
Author(s):  
Michael Rosko ◽  
Herbert S. Wong ◽  
Ryan Mutter
Keyword(s):  
Stochastic Frontier Analysis ◽  
High Efficiency ◽  
Health Maintenance Organization ◽  
Stochastic Frontier ◽  
Operating Characteristics ◽  
Health Maintenance ◽  
Frontier Analysis ◽  
Cost Inefficiency ◽  
Lower Health ◽  
Low Efficiency

We compared performance, operating characteristics, and market environments of low- and high-efficiency hospitals in the 37 states that supplied inpatient data to the Healthcare Cost and Utilization Project from 2006 to 2010. Hospital cost-inefficiency estimates using stochastic frontier analysis were generated. Hospitals were then grouped into the 100 most- and 100 least-efficient hospitals for subsequent analysis. Compared with the least efficient hospitals, high-efficiency hospitals tended to have lower average costs, higher labor productivity, and higher profit margins. The most efficient hospitals tended to be nonteaching, investor-owned, and members of multihospital systems. Hospitals in the high-efficiency group were located in areas with lower health maintenance organization penetration and less competition, and they had a higher share of Medicaid and Medicare admissions. Results of the analysis suggest there are opportunities for public policies to support improved efficiency in the hospital sector.

Efficiency levels of sub-national governments: a comparison of SFA and DEA estimations

2014 ◽  
Vol 26 (3) ◽  
pp. 275-283 ◽  
Author(s):  
Primož Pevcin
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Empirical Literature ◽  
Fiscal Year ◽  
Content Type ◽  
Frontier Analysis ◽  
Traditional Approaches ◽  
National Governments

Purpose – By utilizing the two most commonly used approaches to generate “best practice frontier” to estimate efficiency of observed units, the purpose of this research paper is to estimate technical efficiency for total population of 200 Slovenian municipalities for the 2011 fiscal year. Design/methodology/approach – Stochastic frontier analysis (SFA) and data envelopment analysis (DEA) methods are used to estimate technical efficiency levels. Namely, the majority of studies have utilized these two “traditional” approaches. Since the advantages of one method often represent the disadvantages of the other method, the two methods have been selected to compare the results obtained on the technical efficiency levels. Findings – The results suggest that mean technical inefficiency should be approximately 22-25 percent (SFA method), whereas DEA method suggests the inefficiency in the range 12-18 percent. The DEA approach also suggests that the paper has many more technically efficient units compared to the SFA estimates. Nevertheless, the SFA assessment has revealed that, although on average the inefficiency should be larger compared to the DEA assessment, more than one-third of municipalities should exhibit relatively low levels of inefficiency (less than 5 percent). Originality/value – This study utilizes both parametric as well as non-parametric approaches to assess the technical efficiency, which is not very common in the empirical literature. Besides, it focusses on the local government efficiency in a post-socialist country.

scholarly journals Technical Efficiency Analysis of Wheat Crop in Arid Region of Punjab, Pakistan

2021 ◽  
pp. 1-9
Author(s):  
Muhammad Fahad Irfan ◽  
Muhammad Umer Afzal ◽  
Kaif Matloob ◽  
Irfan Ahmad Baig
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Efficiency Analysis ◽  
Primary Data ◽  
Wheat Crop ◽  
Analysis Model ◽  
Frontier Analysis ◽  
The Mean

The present study aims to estimate the possible effects of credit on production of wheat crop in Chakwal. The research was based on primary data gathered from 120 farmers, selected by using random sampling technique belonging to two tehsils i.e. Talagang and Chakwal. SFA (Stochastic Frontier Analysis) model was adapted to analyze the data and the results show the mean technical efficiency of the wheat crop was 82 percent for borrowers and 76 percent for non-borrowers. The results proposed that the technical efficiency of wheat growers can be increased by increasing loan disbursement in the area.

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