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Patterns in Technical Efficiency and Technical Change at the Farm-level in England and Wales, 1982-2002

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  • David Hadley

Abstract

English and Welsh farm-level survey data are employed to estimate stochastic frontier production functions for eight different farm types (cereal, dairy, sheep, beef, poultry, pigs, general cropping and mixed) for the period 1982 to 2002. Differences in the relative efficiency of farms are explored by the simultaneous estimation of a model of technical inefficiency effects. The analysis shows that, generally, farms of all types are relatively efficient with a large proportion of farms operating close to the production frontier. However, whilst the frontier farms of all types are becoming more efficient through time because of technical change, it is also the case that the efficiency of the average farm for most farm types is increasing at a slower rate. In addition, annual mean levels of efficiency for most farm types have declined between 1982 and 2002. The factors that consistently appear to have a statistically significant effect on differences in efficiency between farms are: farm or herd size, farm debt ratios, farmer age, levels of specialisation and ownership status. Copyright 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 57 (2006)
Issue (Month): 1 (03)
Pages: 81-100

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Handle: RePEc:bla:jageco:v:57:y:2006:i:1:p:81-100

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Cited by:
  1. 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.
  2. Imori, Denise & Guilhoto, Joaquim José Martins & Postali, Fernando Antonio Slaibe, 2012. "Eficiência técnica das agropecuárias familiar e patronal – diferenças regionais no Brasil
    [Technical efficiency of agricultural households and business - regional differences in Brazil]
    ," MPRA Paper 46954, University Library of Munich, Germany.
  3. Hansson, Helena, 2007. "Strategy factors as drivers and restraints on dairy farm performance: Evidence from Sweden," Agricultural Systems, Elsevier, vol. 94(3), pages 726-737, June.
  4. Miguel Martín-Retorillo & Vincente Pinilla, 2012. "Why did agricultural labour productivity not converge in Europe from 1950 to 2005?," Working Papers 0025, European Historical Economics Society (EHES).
  5. Imori, Denise & Guilhoto, Joaquim José Martins & Postali, Fernando Antonio Slaibe, 2012. "Production efficiency of family farms and business farms in the Brazilian regions," MPRA Paper 46995, University Library of Munich, Germany.
  6. Henningsen, Arne & Kumbhakar, Subal C. & Lien, Gudbrand D., 2009. "Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49728, Agricultural and Applied Economics Association.
  7. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.
  8. Alan Matthews & Carol Newman & Fiona Thorne, 2006. "Productivity in Irish Agriculture," Working Papers 0614, Rural Economy and Development Programme,Teagasc.
  9. Zhu, Xueqin & Demeter, Robert Milan & Oude Lansink, Alfons G.J.M., 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists.
  10. Trnkova, Gabriela & Mala, Zdenka & Vasilenko, Alexandr, 2012. "Analysis of the Effects of Subsidies on the Economic Behavior of Agricultural Businesses Focusing on Animal Production," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4), December.
  11. Zhu, Xueqin & Oude Lansink, Alfons G.J.M., 2008. "Technical Efficiency of the Crop Farms under the Various CAP Reforms: Empirical Studies for Germany, the Netherlands and Sweden," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6589, European Association of Agricultural Economists.

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