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 Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

scholarly journals Efficacité Technique des Petits Producteurs du Maïs au Bénin

2018 ◽  
Vol 14 (19) ◽  
pp. 109
Author(s):  
Fawaz A. Adéchinan Aminou
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Farm Households ◽  
Farm Income ◽  
Selling Price ◽  
Stochastic Frontier Approach ◽  
Access To Credit ◽  
Seed Distribution ◽  
Production Area ◽  
Low Efficiency

This study examines how small maize farmers allocate their production inputs and identifies the elements that characterize efficient farms. A Cobb Douglas stochastic frontier approach is used to estimate farm level technical efficiency of maize farmers. Average technical efficiency of sampled farms was estimated to be 65.40% with a minimum of 20.47% and a maximum of 93.46%. The study further showed that the farmers’ sex, the use of improved seeds, the maize selling price, the non-farm income, the contact with an NGO, the access to credit and the production area played a positive and significant role in improving technical efficiency. The results imply that government can save resources used in extension services and focus on its improved seed distribution policy. Also, imperfections in the labor/capital market contribute to the low efficiency of farm households.

scholarly journals The trends in efficiency of Lithuanian dairy farms: a semiparametric approach

2015 ◽  
Vol 37 (2) ◽  
pp. 167-178 ◽  
Author(s):  
Tomas Baležentis ◽  
Tianxiang Li ◽  
Alvydas Baležentis
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
Random Coefficients ◽  
Family Farms ◽  
Frontier Analysis ◽  
Semiparametric Approach ◽  
Farm Accountancy Data Network ◽  
Development Paths

This study aims at analysing the trends in efficiency of Lithuanian dairy farms and thus identifying the prospective development paths. The semiparametric approach based on nonparametric regression and Stochastic Frontier Analysis is applied for the analysis. The research relies on Farm Accountancy Data Network and covers family farms. The period of 2004–2011 is considered. In order to identify the underlying trends in dairy farming, we focus on such features as technical efficiency, partial elasticities, and elasticity of scale. The semiparametric approach yielded rather high efficiencies. Specifically, the average technical efficiency of 89% was observed. A decline in technical efficiency during 2004–2011 is present for both point estimates and associated bounds of the confidence interval. Analysis of the elasticity of scale implies that most of the farms could still increase their scale of operation. The obtained results were confirmed by a parametric random coefficients model.

Technical efficiency and input-driven growth in Indian engineering goods industry during post-reform period: stochastic frontier approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vasim Akram ◽  
Asheref Illiyan
Keyword(s):  
Technical Efficiency ◽  
High Performance ◽  
Stochastic Frontier ◽  
Capacity Utilization ◽  
Output Growth ◽  
Infrastructure Development ◽  
Efficiency Change ◽  
Stochastic Frontier Approach ◽  
Content Type ◽  
Reform Period

PurposeThe purpose of this study is to examine the performance of Indian engineering goods industry by measuring the technical efficiency and input-driven growth.Design/methodology/approachThe study used the panel data of six firms from the period of 1991–92 to 2014–15 compiled from Annual Survey of Industries (ASI), India and output-oriented econometric techniques such as pooled OLS model, and stochastic frontier approach has been applied to measure the technical efficiency.FindingsThe results suggest that the prime sources of high performance in engineering goods industry, which has recorded 8.8% output growth, are primarily contributed by inputs driven growth (8.2%) during the post-reform period, while the effect of technological change is minimal (0.1%) and technical efficiency change is negative (−0.2%). It was due to sluggishness, outdated technology and underutilization of resources in Indian economy.Research limitations/implicationsThis research paper is limited to engineering goods industry based on concorded macro data. The recommendations are that India should pursue policies and programs which may focus on technology acquisition, skill enhancement of labor, better capacity utilization, R&D and infrastructure development that may augment the technical change and technical efficiency change of the sector.Originality/valueThis research provides robust and significant estimates of technical efficiency and adds valuable insights to the existing literature by identifying the potential areas that improves the performance of Indian engineering goods industry.

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 How does crop insurance influence pesticide use? Evidence from French farms

2020 ◽  
Author(s):  
Geoffroy Enjolras ◽  
Magali Aubert
Keyword(s):  
Risk Management ◽  
Strategic Change ◽  
Crop Insurance ◽  
Pesticide Use ◽  
Management Tools ◽  
Private Companies ◽  
Field Crops ◽  
Farm Accountancy Data Network ◽  
Farm Scale ◽  
Using Data

AbstractThe purpose of this paper is to examine how crop insurance influences pesticide use, the two decisions being strategic for risk management at the farm scale. To that aim, the paper implements propensity score matching, difference-in-differences models, and a combination of these two methods in order to compare two similar populations of insured and non-insured farmers. Using data from the Farm Accountancy Data Network (FADN), we consider French farms which cultivate field crops and quality wine-growing, the two main productions that participate the most to crop insurance and that use intensively pesticides. The analysis is performed between 2008 and 2012 given a strategic change in the crop insurance system in 2010 that strongly incites farmers to purchase crop insurance with private companies. At the same time, pesticide use was progressively discouraged through public policies. Estimations show that while pesticide use decreases for all crops, the purchase of crop insurance policies has no impact for field crops and quality wine-growing. Meanwhile, the land allocated to each crop within the farm changes. These results question a possible substitutability, for some productions, between crop insurance and pesticides as risk management tools.

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