Does a Diversified Crop Portfolio Make Farmers More Efficient? A Stochastic Production Frontier Analysis of Farm-level Data from Assam, India

2021 ◽  
pp. 097300522199758
Author(s):  
Raju Mandal ◽  
Shrabanti Maity
Keyword(s):  
Positive Impact ◽  
Northeast India ◽  
Government Support ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Farm Level ◽  
Agriculture Sector ◽  
Level Data ◽  
Stochastic Production

The agriculture sector in India is beset with twin limitations of shrinking cultivable area and absence of major technological breakthroughs in the recent past. In such a situation, a judicious management of the farm in the form of adjustment in a crop portfolio can be quite useful to maximise output and minimise wastage of resources. This article seeks to examine whether a diversified crop portfolio makes the farmers more efficient using farm-level survey data collected from geographically diverse areas of Assam, a state in northeast India. The results of a stochastic production frontier analysis show that adoption of a diversified crop portfolio across crops and seasons makes the farmers more efficient in cultivation by helping them reduce weather-induced damages to crops and reap better returns from farming. This efficiency-enhancing effect of crop diversification is found to be heterogeneous among the regions. However, too much diversification reduces the efficiency of farmers. The results have important implications for Assam where floods cause extensive damage to crops every year. Moreover, access to extension services and government support are found to make the farmers more efficient. On the other hand, fixed-rent form of tenancy reduces efficiency of the farmers while household size has a positive impact on the same.

scholarly journals Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis

2002 ◽  
Vol 41 (4II) ◽  
pp. 643-663 ◽  
Author(s):  
Munir Ahmad ◽  
Ghulam Mustafa Chaudhry ◽  
Muhammad Iqbal
Keyword(s):  
Value Added ◽  
Well Being ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Agriculture Sector ◽  
Food Grains ◽  
Stochastic Production ◽  
Total Fat ◽  
Food Grain

The agriculture sector plays a crucial role in the overall development of the country. The sector shares about 24 percent of the GDP and employs about 44 percent of the workforce in the country. Crops sub-sector is the major contributor towards agriculture, sharing more than 53 percent of the value-added. Wheat, being the staple food of Pakistanis, carries immense importance: it contributes about 12 percent of sector value-added, is sown on about 37 percent of the total cropped area, and shares 80 percent in consumption of food grains, while its share in food grain production is around 70 percent. As primary diet, wheat alone shares about 50 percent of the total calories’ and proteins intake in Pakistan, and contributes about 8 percent of the total fat consumed [FAO (Various Issues]. Consequently, overall dietary well being of our people especially the urban and rural poor is largely dependent on the performance of wheat economy.

scholarly journals FOREIGN OWNERSHIP, PRODUCTIVITY, AND ECONOMIC CRISIS

2011 ◽  
Vol 10 (2) ◽  
Author(s):  
Suyanto .
Keyword(s):  
Economic Crisis ◽  
Positive Impact ◽  
Foreign Ownership ◽  
Manufacturing Firms ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Fdi Spillovers ◽  
Positive Spillover ◽  
Local Manufacturing ◽  
Stochastic Production

This paper evaluates the productivity benefit from the present of foreign ownership in manufacturing firms. The productivity benefit is analysed for the period before crisis (19881996) and the period crisis onwards (1997-2000). Using the methodology of stochastic production frontier, the results show that foreign ownership generates positive productivity benefit to local manufacturing firms, both during the before crisis period and during the crisis onwards period. An interesting result emerges when comparing the two periods. Although positive spillover benefits exist in both periods, the coefficient of FDI Spillovers is larger during the period of crisis onwards, suggesting that the productivity benefit increase after economic crisis. These findings support an argument by Takii (2007) that economic crisis has positive impact on the productivity spillovers of FDI.

A generalized stochastic production frontier analysis of technical efficiency of rice farming

2016 ◽  
Vol 9 (2) ◽  
pp. 114-128 ◽  
Author(s):  
Aditi Bhattacharyya ◽  
Raju Mandal
Keyword(s):  
Technical Efficiency ◽  
Rice Production ◽  
Farm Households ◽  
Rice Farming ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Technical Inefficiency ◽  
Content Type ◽  
Farm Level ◽  
Stochastic Production

Purpose This paper aims to analyze farm-level technical inefficiency of rice farming in Assam, India, using a multiple-output generalized stochastic frontier framework. Design/methodology/approach Primary data for this study were collected in 2009-2010 from 310 farm-households in four non-contiguous districts of Dhubri, Morigaon, Dibrugarh and Cachar that are located in different agro-climatic regions of Assam. Based on a Cobb–Douglas production function for multiple rice varieties, the paper simultaneously estimates the generalized stochastic production frontier and examines effects of exogenous factors on farm-level technical inefficiency. Findings Results of this study show that the average technical inefficiency of farms is 8.5 per cent in the sample. Further, inefficiency is lower in the frequently flood prone areas, and availability of government support helps reduce such inefficiency as well. However, technical efficiency is higher for the Muslim farm-households, and it decreases with greater land fragmentation. The study also finds that the use of primitive technology like bullock reduces technical efficiency of rice farming. Originality/value This paper is based on a novel data set that has specially been collected to examine productivity and efficiency of rice cultivation in the flood plains of Assam that has not been studied before. Further, to the best of the authors’ knowledge, this paper is the first one to model rice production as a multiple-output stochastic production frontier and analyze technical efficiency of rice production accordingly.

Gender-based Estimation of Technical Efficiency of Organic Vegetable Farmers of North Kerala

2020 ◽  
pp. 131-136
Keyword(s):  
Technical Efficiency ◽  
Positive Impact ◽  
Negative Relationship ◽  
Household Survey ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Vegetable Farmers ◽  
Female Farmers ◽  
Stochastic Production ◽  
Gender Based

ABSTRACT The present study focused on technical efficiency (TE) of organic farming in Kerala India. The specific objectives of the study were to estimate the technical efficiency of organic vegetable farmers, and to estimate and compare the technical efficiency of organic vegetable farmers according to gender. The data were collected through a household survey with a structured schedule from 300 organic vegetable farmers. A Cobb- Douglas functional form was used to estimate the Stochastic Production Frontier (SPF) of the organic vegetable farmers. It was concluded that in the frontier model, the independent variables such as land, labour, capital, and organic manure had a positive impact on frontier production among the male farmers. The young farmers were technically efficient than aged farmers. The coefficient of experience showed a negative relationship with inefficiency. It was noted that female farmers were technically efficient than male farmers.

scholarly journals EFISIENSI DAN KEBERLANJUTAN USAHA PURSE SEINE DI KABUPATEN MALUKU TENGAH DAN KOTA AMBON

2019 ◽  
Vol 3 (1) ◽  
pp. 38-51
Author(s):  
Margie Wattimury
Keyword(s):  
Technical Efficiency ◽  
Development Policy ◽  
Appropriate Technology ◽  
Purse Seine ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Average Return ◽  
Use Of Resources ◽  
Stochastic Production

The level of purse seine business income is determined by the efficient allocation of resources for alternative capture fisheries activities. If resources are not used efficiently, there will be unexploited potential to increase income and create surpluses. Conversely, if resources are allocated efficiently, additional capture fisheries can be obtained through growth-oriented development efforts. Therefore, it is important to identify the efficient use of resources to determine the existence of purse seine fisheries. The results show that the estimated technical efficiency of the catch with SPF (Stochastic Production Frontier) analysis for purse seine fisheries in Central Maluku Regency and Ambon was influenced by the length and width of fishing gear, number of fishermen, amount of investment value and time of capture operations. The minimum value of catch technical efficiency is 0.10 and the maximum is 0.99 with an average 0.48. Factors influencing the technical inefficiency of fishing are the experience of captain and the education level of fishermen. Purse seine fishery business in Central Maluku Regency and Ambon City is feasible to be developed, showing by NPV value Rp. 30,514,684 / year, IRR 23.97% and B / C ratio 5.85. The average return on investment (PP) based on the analysis is 2.16 years, with BEP price Rp. 6,606 and BEP production 3,765 kgs. The main priorities of purse seine fisheries development policy strategy in Central Maluku Regency and Ambon are the development of assistance to fishing groups, the development of appropriate technology to handle catches, increase fisheries production, and infrastructures development.

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