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The Effect of Land Fragmentation on the Technical Inefficiency of Dairy Farms

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  • Tracy Bradfield
  • Robert Butler
  • Emma Dillon
  • Thia Hennessy
  • Paul Kilgarriff

Abstract

Exploiting the link between land identification and farm accountancy data, we use a uniquely detailed database to conduct a robust analysis of land fragmentation and its effect on technical inefficiency on dairy farms in Ireland. Using a stochastic production frontier model, our results show that the number of parcels, the average distance between parcels and the main farm, and the portion of land separate from the main farm all increase technical inefficiency. Such inefficiency can be reduced through increased parcel area, reduced travel distances, advisory services contact, intensive practices and hired labour. Our findings support the need for policy to improve land and labour mobility, providing evidence to support incentives to promote the transfer and long‐term leasing of agricultural land.

Suggested Citation

  • Tracy Bradfield & Robert Butler & Emma Dillon & Thia Hennessy & Paul Kilgarriff, 2021. "The Effect of Land Fragmentation on the Technical Inefficiency of Dairy Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 486-499, June.
    • Handle: RePEc:bla:jageco:v:72:y:2021:i:2:p:486-499
    DOI: 10.1111/1477-9552.12413
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    References listed on IDEAS

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    1. Niskanen, Olli & Heikkilä, Anna-Maija, 2015. "The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-13, April.
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    Cited by:

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    5. Ölkers, Tim & Kirchner, Ella & Mußhoff, Oliver, 2023. "Terrorism and land use in agriculture: The case of Boko Haram in Nigeria - a replication attempt of the paper by Adelaja & George (2019)," Land Use Policy, Elsevier, vol. 134(C).
    6. Onofri, Laura & Trestini, Samuele & Mamine, Fateh & Loughrey, Jason, 2022. "Understanding the Agricultural Land Leasing Market in Ireland: A Transaction Cost Approach," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321211, Agricultural Economics Society - AES.
    7. Valtiala, Juho & Niskanen, Olli & Torvinen, Mikael & Riekkinen, Kirsikka & Suokannas, Antti, 2023. "The relationship between agricultural land parcel size and cultivation costs," Land Use Policy, Elsevier, vol. 131(C).
    8. Bradfield, Tracy & Butler, Robert & Dillon, Emma J. & Hennessy, Thia & Loughrey, Jason, 2023. "The impact of long-term land leases on farm investment: Evidence from the Irish dairy sector," Land Use Policy, Elsevier, vol. 126(C).
    9. Xiayire Xiaokaiti & Hongli Zhang & Nan Jia, 2024. "The Impacts and Spatial Characteristics of High-Standard Farmland Construction on Agricultural Carbon Productivity," Sustainability, MDPI, vol. 16(4), pages 1-19, February.
    10. Ndip, Francis Ebai & Molua, Ernest L. & Mvodo, Meyo-Elise Stephanie & Nkendah, Robert & Djomo Choumbou, Raoul Fani & Tabetando, Rayner & Akem, Nina Fabinin, 2023. "Farmland Fragmentation, crop diversification and incomes in Cameroon, a Congo Basin country," Land Use Policy, Elsevier, vol. 130(C).

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