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A Nonparametric Analysis Of Efficiency For A Sample Of Kansas Beef Cow Farms

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  • Featherstone, Allen M.
  • Langemeier, Michael R.
  • Ismet, Mohammad

Abstract

Competitive 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 Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 29 (1997)
Issue (Month): 01 (July)
Pages:

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Handle: RePEc:ags:joaaec:15547

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: Beef cow; Industry structure; Nonparametric efficiency; Productivity Analysis;

References

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  1. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
  2. Featherstone, Allen M. & Moghnieh, Ghassan A. & Goodwin, Barry K., 1995. "Farm-level nonparametric analysis of cost-minimization and profit-maximization behavior," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 13(2), November.
  3. Drabenstott, Mark, 1994. "Industrialization: Steady Current or Tidal Wave?," Choices, Agricultural and Applied Economics Association, vol. 9(4).
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Cited by:
  1. Toodi, Bhaskar & Featherstone, Allen M. & Young, Ronald C., 1998. "Efficiency Analysis Of Hospitals In The Great Plains: An Urban-Rural Comparison," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20806, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
  3. Gow, Laura R. & Langemeier, Michael R., 1999. "An Efficiency Analysis Of Cattle Backgrounding In Kansas," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35701, Western Agricultural Economics Association.
  4. Ross, Kara L. & Dalton, Timothy J. & Featherstone, Allen M., 2009. "A Nonparametric Efficiency Analysis of Bean Producers from North and South Kivu," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46575, Southern Agricultural Economics Association.
  5. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2011. "Technical efficiency and technology gaps in beef cattle production systems in Kenya: A stochastic metafrontier analysis," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108947, Agricultural Economics Society.
  6. Qushim, Berdikul & Gillespie, Jeffrey M. & Nehring, Richard F., 2013. "Scale Economies And Economic Performance In Southeastern U.S. Cow-Calf Production," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143009, Southern Agricultural Economics Association.
  7. Mo, Lijia, 2009. "A comparative efficiency analysis of wheat farms using parametric and nonparametric methods," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56427, Southern Agricultural Economics Association.
  8. M. Ishaq Javed & Sultan Ali Adil & Sarfaraz Hassan & Asghar Ali, 2009. "An Efficiency Analysis of Punjab’s Cotton-Wheat System," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(2), pages 97-124, Jul-Dec.
  9. Wu, Shunxiang & Prato, Anthony A., 2006. "Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(03), December.
  10. Ariyaratne, Chatura B. & Featherstone, Allen M. & Langemeier, Michael R. & Barton, David G., 1997. "An Analysis of Efficiency of Midwestern Agricultural Cooperatives," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35763, Western Agricultural Economics Association.
  11. Karagiannis, Giannis & Sarris, Alexander H., 2002. "Direct Subsidies and Technical Efficiency in Greek Agriculture," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24868, European Association of Agricultural Economists.
  12. Pantzios, Christos J. & Rozakis, Stelios & Tzouvelekas, Vangelis, 2006. "Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(03), December.
  13. Lilienfeld, Amy & Asmild, Mette, 2007. "Estimation of excess water use in irrigated agriculture: A Data Envelopment Analysis approach," Agricultural Water Management, Elsevier, vol. 94(1-3), pages 73-82, December.
  14. Qushim, Berdikul & Gillespie, Jeffrey M. & Nehring, Richard F., 2012. "Economic Performance Measures of Southeastern U.S. Cow-Calf Farms: Which Types of Farms Are the Most Efficient?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124733, Agricultural and Applied Economics Association.
  15. Wang, Tong & Park, Seong C. & Bevers, Stan & Teague, Richard & Cho, Jaesung, 2013. "Factors Affecting Cow-Calf Herd Performance and Greenhouse Gas Emissions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), December.
  16. Helmers, Glenn A. & Langemeier, Michael R. & Shaik, Saleem, 2005. "Measuring Scope And Scale Efficiency Gains Due To Specialization," 2005 Annual meeting, July 24-27, Providence, RI 19388, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  17. Shunxiang Wu & Stephen Devadoss & Yaochi Lu, 2003. "Estimation and decomposition of technical efficiency for sugarbeet farms," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 471-484.
  18. Gloy, Brent A. & LaDue, Eddy L., 2002. "Financial Management Practices and Farm Profitability," Proceedings: 2002 Regional Committee NC-221, October 7-8, 2002, Denver, Colorado 132369, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
  19. Mugera, Amin W. & Langemeier, Michael R., 2011. "Does Farm Size and Specialization Matter for Productive Efficiency? Results from Kansas," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(04), November.
  20. Mo, Lijia & Featherstone, Allen M., 2010. "A Comparative Efficiency Analysis of Wheat Farms using Parametric and Nonparametric Methods," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56778, Southern Agricultural Economics Association.
  21. Lambert, David K. & Bayda, Volodymyr V., 2005. "The Impacts of Farm Financial Structure on Production Efficiency," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(01), April.
  22. Gregory, Alexandra & Featherstone, Allen M., 2008. "Nonparametric Efficiency Analysis for Coffee Farms in Puerto Rico," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6765, Southern Agricultural Economics Association.
  23. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2012. "Determinants of technical efficiency in beef cattle production in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125853, International Association of Agricultural Economists.
  24. Nivens, Heather D. & Kastens, Terry L. & Dhuyvetter, Kevin C., 2002. "Payoffs To Farm Management: How Important Is Crop Marketing?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.

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