A Nonparametric Analysis Of Efficiency For A Sample Of Kansas Beef Cow Farms
AbstractCompetitive pressures in the cow-calf sector increased in 1995 because of a decline of 27% in calf prices. Technical, allocative, and scale efficiency measures were used to examine the competitiveness of a sample of Kansas beef cow farms. On average, the farms were 78% technically efficient, 81% allocatively efficient, and 95% scale efficient. Enterprise profitability was correlated positively with the efficiency measures. Inefficiency was related to herd size and degree of specialization. Producers should focus on using capital, feed, and labor more efficiently rather that increasing their size. Increased concentration of the cow-calf sector will not result in large cost savings given the current technology.
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Bibliographic InfoArticle provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.
Volume (Year): 29 (1997)
Issue (Month): 01 (July)
Beef cow; Industry structure; Nonparametric efficiency; Productivity Analysis;
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