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Cotton Farmers' Technical Efficiency: Stochastic and Nonstochastic Production Function Approaches

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  • Chakraborty, Kalyan
  • Misra, Sukant K.
  • Johnson, Phillip N.

Abstract

Technical efficiency for cotton growers is examined using both stochastic (SFA) and nonstochastic (DEA) production function approaches. The empirical application uses farm-level data from four counties in west Texas. While efficiency scores for the individual farms differed between SFA and DEA, the mean efficiency scores are invariant of the method of estimation under the assumption of constant returns to scale. On average, irrigated farms are 80% and nonirrigated farms are 70% efficient. Findings show that in Texas, the irrigated farms, on average, could reduce their expenditures on other inputs by 10%, and the nonirrigated farms could reduce their expenditures on machinery and labor by 12% and 13%, respectively, while producing the same level of output.

Suggested Citation

  • Chakraborty, Kalyan & Misra, Sukant K. & Johnson, Phillip N., 2002. "Cotton Farmers' Technical Efficiency: Stochastic and Nonstochastic Production Function Approaches," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(2), pages 1-10, October.
    • Handle: RePEc:ags:arerjl:31395
    DOI: 10.22004/ag.econ.31395
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    References listed on IDEAS

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    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
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    Cited by:

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    2. Olusegun, Ajetomobi Joshua, 2012. "Productivity Growth of ECOWAS Common Crops: A Tale of Two Competing Frontier Methods of Analysis," 2012 Eighth AFMA Congress, November 25-29, 2012, Nairobi, Kenya 159404, African Farm Management Association (AFMA).
    3. Alzamora, Rosa M. & Apiolaza, Luis A., 2013. "A DEA approach to assess the efficiency of radiata pine logs to produce New Zealand structural grades," Journal of Forest Economics, Elsevier, vol. 19(3), pages 221-233.
    4. Ajetomobi, J. O. & Adedeji, I. A., 2016. "Productivity Growth of ECOWAS Common Crops: A Tale of Two Competing Frontier Methods of Analysis," Agroeconomia Croatica, Croatian Society of Agricultural Economists, vol. 6(1), pages 1-16, November.
    5. M. A. Samad Azad & Tihomir Ancev, 2016. "Economics of Salinity Effects from Irrigated Cotton: An Efficiency Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-24, March.
    6. Tong, Q. & Swallow, B. & Zhang, L. & Zhang, J., 2018. "Risk Attitude, Technical Efficiency and Adoption: An Integrated Approach to Climate-Smart Rice Production in the Jianghan Plain, China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277311, International Association of Agricultural Economists.
    7. Melesse, Kumilachew Alamerie & Ahmed, Musa Hasen, 2015. "A Comparative Stochastic Frontier Analysis Of Irrigated And Rain-Fed Potato Farms In Eastern Ethiopia," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 38(4).
    8. Njuki, Eric & Bravo-Ureta, Boris E., 2016. "Climatic Variability and Irrigation Water Efficiency in the United States: An Empirical Assessment of the 1987-2012 Period," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235555, Agricultural and Applied Economics Association.
    9. Bouali Guesmi & Teresa Serra & Allen Featherstone, 2015. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(6), pages 703-713, November.
    10. Muhamad Zahid Muhamad & Mad Nasir Shamsudin & Nitty Hirawaty Kamarulzaman & Nolila Mohd Nawi & Jamaliah Laham, 2022. "Investigating Yield Variability and Technical Efficiency of Smallholders Pineapple Production in Johor," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    11. Isidoro GUZMÁN & Narciso ARCAS, 2008. "The Usefulness Of Accounting Information In The Measurement Of Technical Efficiency In Agricultural Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 107-131, March.
    12. Yeşim Aytop, 2023. "Determination of Energy Consumption and Technical Efficiency of Cotton Farms in Türkiye," Sustainability, MDPI, vol. 15(14), pages 1-14, July.

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