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Evidence of farm-level synergies in mixed-farming systems in the Australian Wheat-Sheep Zone

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  • Villano, Renato
  • Fleming, Euan
  • Fleming, Pauline

Abstract

Synergies are reported for mixed-enterprise farming systems in a benchmarking group in the Wheat-Sheep Zone in New South Wales, Australia. A stochastic input distance function is estimated and a measure of synergies is calculated, based on the second cross partial derivative of output variables in the distance function. Evidence is presented of strong synergies from complementarity between sheep and beef enterprises, sheep and crop enterprises, and beef and crop enterprises.

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Bibliographic Info

Article provided by Elsevier in its journal Agricultural Systems.

Volume (Year): 103 (2010)
Issue (Month): 3 (March)
Pages: 146-152

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Handle: RePEc:eee:agisys:v:103:y:2010:i:3:p:146-152

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Web page: http://www.elsevier.com/locate/agsy

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Keywords: Mixed farming Distance function Complementarity Synergies;

References

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  1. Hajargasht, Gholamreza & Coelli, Tim & Rao, D.S. Prasada, 2008. "A dual measure of economies of scope," Economics Letters, Elsevier, vol. 100(2), pages 185-188, August.
  2. Keating, B. A. & McCown, R. L., 2001. "Advances in farming systems analysis and intervention," Agricultural Systems, Elsevier, vol. 70(2-3), pages 555-579.
  3. Jean-Paul Chavas & Kwansoo Kim, 2007. "Measurement and Sources of Economies of Scope: A Primal Approach," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(3), pages 411-427, September.
  4. Coelli, Tim J. & Fleming, Euan M., 2003. "Diversification Economies And Specialisation Efficiencies In A Mixed Food And Coffee Smallholder Farming System In Papua New Guinea," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25841, International Association of Agricultural Economists.
  5. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
  6. Grosskopf, Shawna & Hayes, Kathy & Yaisawarng, Suthathip, 1992. "Measuring Economies of Diversification: A Frontier Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(4), pages 453-59, October.
  7. Robert E. Evenson & Wallace B. Huffman, 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Working Papers 773, Economic Growth Center, Yale University.
  8. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
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Cited by:
  1. Hutchings, Timothy R. & Nordblom, Thomas L., 2011. "A financial analysis of the effect of the mix of crop and sheep enterprises on the risk profile of dryland farms in south-eastern Australia," AFBM Journal, Australasian Farm Business Management Network, vol. 8(1).
  2. Pacín, Fernando & Oesterheld, Martín, 2014. "In-farm diversity stabilizes return on capital in Argentine agro-ecosystems," Agricultural Systems, Elsevier, vol. 124(C), pages 51-59.

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