scholarly journals Analysis of technical efficiency of small-scale commercial farmers in Vhembe district

2021 ◽  
Vol 49 (1) ◽  
pp. 91-104
Author(s):  
M. Muzekenyi ◽  
J. Zuwarimwe ◽  
B.M. Kilonzo
Keyword(s):  
Technical Efficiency ◽  
Rural Areas ◽  
Stochastic Frontier Analysis ◽  
Limpopo Province ◽  
Small Scale ◽  
Stochastic Production Frontier ◽  
Frontier Analysis ◽  
Commercial Farming ◽  
The Government ◽  
Vhembe District

Small-scale commercial farmers are regarded as the strategic avenue to achieve meaningful development in rural areas of South Africa.  The government acknowledged that the inclusion of small-scale commercial farming in its development strategies. The paper aims to measure the efficiency of small-scale commercial farming enterprises in Vhembe District in Limpopo Province. Quantitative data were collected from 217 small-scale commercial farmers using structured questionnaires. The data were standardized using a farming enterprise budget system and analysed using the maximum likelihood and stochastic frontier analysis. The results revealed that aggregate output was positive and significantly influenced by age, education level, farm experience, farm labour, and government grants. However, the projected stochastic production frontier model combined with the efficiency parameters showed that labour and credit computed a negative effect on technical efficiency. The results indicated that the average level of technical efficiency ranged between 20% and 96% with a mean of 54%. This indicates that there is potential to increase production among small-scale commercial farmers in the study area by 46 % through efficient use of existing resources. As such, the local government should provide necessary supports such as formal agriculture training, access to credit and information to increase productivity.

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 Nexus between Technical Efficiency and Financial Sustainability: Evidence from Small Scale Sunflower Oil Processing Firms in Tanzania

2019 ◽  
pp. 1-11
Author(s):  
Anastasia R. Njiku ◽  
Ganka D. Nyamsogoro
Keyword(s):  
Technical Efficiency ◽  
Sunflower Oil ◽  
Stochastic Frontier Analysis ◽  
Developing Economies ◽  
Multiple Linear Regression Model ◽  
Small Scale ◽  
Financial Sustainability ◽  
Firm Level ◽  
Frontier Analysis ◽  
Oil Processing

Studies on technical efficiency and financial sustainability of firms respectively, have captured the attention of many scholars in both developed and developing economies over several decades. There are patchy empirical evidences however, that link technical efficiency and financial sustainability of small scale agro-processing firms in the context of developing economies like Tanzania. Sunflower Oil Processing Firms are of no exception as the sub-sector is dominated by small scale firms with no well documented relationship between technical efficiency and their financial sustainability. This study was set to determine the relationship between technical efficiency and financial sustainability while controlling for staff productivity. The study used firm level cross-sectional data collected from 219 sunflower oil processing firms randomly selected in Dodoma and Singida regions. A Multiple Linear Regression Model was used in analysing the data. Technical efficiency scores were estimated using Stochastic Frontier Analysis (SFA) model. It was found that there exists a relationship between technical efficiency and financial sustainability of sunflower oil processing firms in Tanzania. The higher the technical efficiency the more Sunflower Oil Processing Firms will be financially sustainable. The findings of this study imply that improving technical efficiency levels is a pre-requisite for financial sustainability of Sunflower oil processing firms in Tanzania.

scholarly journals Comparison of Cambodian Rice Production Technical Efficiency at National and Household Level

2017 ◽  
Author(s):  
Sokvibol Kea ◽  
Hua Li ◽  
Linvolak Pich
Keyword(s):  
Technical Efficiency ◽  
Capital Investment ◽  
Stochastic Frontier Analysis ◽  
National Level ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Frontier Analysis ◽  
Household Level ◽  
The Government ◽  
National Analysis

Rice is the most important food crop in Cambodia and its production is the most organized food production system in the country. The main objective of this study is to measure technical efficiency (TE) of Cambodian rice production and also trying to identify core influencing factors of rice TE at both national and household level, for explaining the possibilities of increasing productivity and profitability of rice, by using translog production function through Stochastic Frontier Analysis (SFA) model. Four-years dataset (2012-2015) generated from the government documents was utilized for the national analysis, while at household-level, the primary three-years data (2013-2015) collected from 301 rice farmers in three selected districts of Battambang province by structured questionnaires was applied. The results indicate that level of rice output varied according to the different level of capital investment in agricultural machineries, total actual harvested area, and technically fertilizers application within provinces, while level of household rice output varied according to the differences in efficiency of production processes, techniques, total annual harvested land, and technically application of fertilizers and pesticides of farmers. The overall mean TE was estimated at 78.4% (national-level) and 34% (household-level), indicates that rice output has the potential of being increased further by 21.6% (national production) and 66% (household) at the same level of inputs and technology if farmers had been technically efficient. The TE also recorded -7% decreasing rate at the national-level and -14.3% at household-level due to highly affected of natural disasters and various environmental and social factors during the study periods.

scholarly journals TECHNICAL EFFICIENCY OF PADDY’S FARMING IN VARIOUS TYPES OF PADDY’S SEEDS IN INDONESIA

2020 ◽  
Vol 13 (3) ◽  
pp. 286
Author(s):  
Venessa Vasthi Winata ◽  
M. Rondhi ◽  
Yasuhiro Mori ◽  
Takumi Kondo
Keyword(s):  
Technical Efficiency ◽  
Formal Education ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Secondary Data ◽  
Household Survey ◽  
Rice Farming ◽  
Frontier Analysis ◽  
Rice Seeds ◽  
The Government

The increasing need for food along with increasing population is one of the problems that must be resolved by Indonesia nation. The government is trying to increase rice production and productivity by using certified seeds. Certified seeds is expected to affect technical efficiency of rice farming. The objectives of this studies are to analyze the level of technical efficiency and to identify the factors that influence the technical efficiency of rice farming in various types of main sources of rice seeds in Indonesia. The study uses secondary data that obtained from Central Bureau of Statistic (BPS) as a results from the 2014 Rice Plant Business Household Survey (SPD 2014). Data were analyzed using stochastic frontier. The results showed that the average technical efficiency level achieved by farmers in rice farming is 0,656 or less than 0,70 (<0,70) so it can be said that rice farming in Indonesia is still technically inefficient. Factors that affecting the technical efficiency of rice farming in various types of main sources of rice seeds in Indonesia were age, formal education, dummy participation of agricultural extension, and dummy certified seeds.  Keywords: certified seeds, rice farming, stochastic frontier analysis, technical efficiency, non-certified seeds

scholarly journals THE INDIVIDUAL SECTOR OF AGRICULTURE IN MOLDOVA AND ITS CONTRIBUTION TO THE DEVELOPMENT OF RURAL AREAS

2018 ◽  
Author(s):  
Liliana CIMPOIES ◽  
Elena SEMENOVA
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Rural Economy ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Small Scale ◽  
Family Farms ◽  
Frontier Analysis ◽  
Farm Performance ◽  
The Individual

Moldovan agriculture is still characterized by a pronounced structural dualism with a very large number of small-scale family farms. The accentuated poverty makes rural economy to flow more and more to a natural subsistence economy, isolating itself from the market economy. The scope of the paper is to assess the farm performance and its contribution to the development of rural areas. The research analysis is based on national statistics and survey data of 723 farms. In order to assess farm performance technical efficiency (TE) and stochastic frontier analysis is used. The contribution of different types of income on the farm development level is analysed through regression analysis. Increasing of farm performance through a higher efficiency and competitiveness could be regarded as the key solution to the low income problem of rural families.

scholarly journals Dampak Program Sekolah Lapang Pengelolaan Tanaman Terpadu terhadap Efisiensi Teknis Usahatani Kedelai di Kabupaten Jember

2017 ◽  
Vol 2 (2) ◽  
pp. 141
Author(s):  
Indah Ibanah ◽  
Andriyono Kilat Adhi ◽  
Dwi Rachmina
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Government Programs ◽  
Frontier Analysis ◽  
Soybean Production ◽  
Average Value ◽  
Production Factors ◽  
The Government ◽  
The Impact

<p>This study aimed to analyze the impact of Sekolah Lapang Pengelolaan Tanaman Terpadu (SLPTT) on technical efficiency soybean participants and non-participants farmers. SLPTT is one of the government programs in an effort to enhancement production and productivity of soybean through the process of learning the application of technology to the management of the use of farm inputs and integrated climate. The method used was the Stochastic Frontier Analysis (SFA) with a model of the Cobb-Douglas production function. Location research in Jember Regency, East Java.</p>The results show the factors that influence significantly to the enhancement in soybean production among others, land, seeds, chemical fertilizers, and pesticides liquid. Production factors most responsive to the enhancement in soybean production is the amount of seed used. The average level of technical efficiency of soybean farming both farmers SLPTT or non SLPTT in Jember Regency have technically efficient. However, farmers SLPTT has an average value of technical efficiency is higher than their non SLPTT, respectively worth 0.83 and 0.75. The sources that affect farmers' socio-economic enhancement of technical efficiency of soybean farming significantly among others, age, planting techniques, the use of VUB, mechanical control, and the number of counseling or SLPTT 2013.

scholarly journals Agricultural Productivity, Efficiency, and Rural Poverty in Irrigated Pakistan: A Stochastic Production Frontier Analysis

2003 ◽  
Vol 42 (3) ◽  
pp. 219-248 ◽  
Author(s):  
Munir Ahmad
Keyword(s):  
Rural Areas ◽  
Stochastic Frontier ◽  
Agricultural Productivity ◽  
Rural Poverty ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Farm Productivity ◽  
The Poor ◽  
The Government

The main objective of this study is to estimate the input elasticities of production for poor and non-poor farms. The study estimates the stochastic frontier production function. The results show that the elasticities of production differ for poor and non-poor farms. The production elasticity of land is substantially higher on rich farms as compared to the farms belonging to poor farmers. This implies higher returns on investment on land by the rich farmers. The salinity/sodicity problem and the tail-end location of the plot adversely affect farm productivity and efficiency, particularly at the poor farms. Moreover, the average cost of the existence of technical inefficiencies is about 43 percent in terms of loss in output, with wide variations across farms ranging from 17 percent to 62 percent. The study further concludes that the least efficient group is not only operating far below the frontier but it also operates at the lower portion of the production frontier. Consequently, increasing access to the inputs would likely raise productivity and reduce poverty. The results imply that the land distribution using the notion of land reforms in favour of poor/small farmers in the presence of existing farm structure, rural infrastructure, and the weak farm-supporting institutions is not expected to raise farm productivity and reduce poverty among the poor farmers. The results call for a strong and active role of the government in close partnership with the private sector to initiate income-generating activities and inputs supply chains in the rural areas to break the nexus of poverty, land degradation, and low agricultural productivity.

scholarly journals Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis

2020 ◽  
Vol 12 (19) ◽  
pp. 8194
Author(s):  
Ruopin Qu ◽  
Yongchang Wu ◽  
Jing Chen ◽  
Glyn D. Jones ◽  
Wenjing Li ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Direct Marketing ◽  
Stochastic Frontier ◽  
Agricultural Cooperatives ◽  
Stochastic Production Frontier ◽  
Frontier Analysis ◽  
Agricultural Cooperative ◽  
Marketing Service ◽  
The Impact

The impact of agricultural cooperatives on apple farmers’ technical efficiency (TE) in China was examined. The cooperatives were divided into two groups: a collective marketing group for farmers and an equivalent non-marketing group that did not provide a marketing service, although other functions remained the same. Using the propensity score matching (PSM) procedure and stochastic production frontier (SPF) modelling, cooperatives’ key functions that potentially increase farmers’ TE can be identified. The results indicate that membership of either group is positively related to yield. However, cooperatives that were not engaged in marketing achieved higher TE than non-members. This suggests that policy makers should encourage cooperatives to focus on activities that do not include direct marketing to increase TE in apple production in China.

scholarly journals A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis

2020 ◽  
Vol 12 (4) ◽  
pp. 494-505
Author(s):  
Nicola Galluzzo
Keyword(s):  
Technical Efficiency ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Frontier Analysis ◽  
Decoupled Payments ◽  
The Common ◽  
The Impact

AbstractThe Common Agricultural Policy (CAP) has undergone radical changes as a consequence of international agreements. Through a parametric approach based on Stochastic Frontier Analysis, it has been possible to estimate the impact of financial subsidies allocated under the Common Agricultural Policy for the period from 2007 to 2017 in the framework of the first and second pillars to Romanian farms that are part of the FADN dataset. The findings have revealed the positive effect of financial subsidies allocated to disadvantaged rural areas in increasing technical efficiency, and a modest impact of decoupled payments disbursed under the first pillar of the CAP on the Romanian farms investigated.

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