IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v35y2003i4p471-484.html
   My bibliography  Save this article

Estimation and decomposition of technical efficiency for sugarbeet farms

Author

Listed:
  • Shunxiang Wu
  • Stephen Devadoss
  • Yaochi Lu

Abstract

This study computes technical efficiency for Idaho sugarbeet farms and decomposes it into pure technical efficiency, scale efficiency, and congestion efficiency using nonparametric procedures. The results indicate that the average efficiency is 0.88 with 45% of the farms in the sample exhibiting full efficiency. Improper scale operation and input overutilization are the major sources of inefficiency for remaining farms. Technical efficiency is independent of farm size. A Tobit model was used to examine the impacts of variables such as farm size, specialization, tenancy position, hired labour, location, and managerial ability on efficiency. Inefficiency in sugarbeet production results in a shortfall of potential revenues not only for producers, but also for landlords and processors.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484
    DOI: 10.1080/00036840210161819
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161819
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840210161819?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rowland, William W. & Langemeier, Michael R. & Schurle, Bryan W. & Featherstone, Allen M., 1998. "A Nonparametric Efficiency Analysis for a Sample of Kansas Swine Operations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 189-199, July.
    2. Featherstone, Allen M. & Langemeier, Michael R. & Ismet, Mohammad, 1997. "A Nonparametric Analysis Of Efficiency For A Sample Of Kansas Beef Cow Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(1), pages 1-10, July.
    3. Stephen Devadoss & Jurgen Kropf, 1996. "Impacts of trade liberalizations under the Uruguay Round on the world sugar market," Agricultural Economics, International Association of Agricultural Economists, vol. 15(2), pages 83-96, November.
    4. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(4), pages 1023-1023, December.
    5. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    6. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-286, July.
    7. Devadoss, Stephen & Kropf, Jurgen, 1996. "Impacts of trade liberalizations under the Uruguay round on the world sugar market," Agricultural Economics, Blackwell, vol. 15(2), pages 83-96, November.
    8. Tauer, Loren W. & Hanchar, John J., 1995. "Nonparametric Technical Efficiency With K Firms, N Inputs, And M Outputs: A Simulation," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(2), pages 1-5, October.
    9. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 439-456, November.
    10. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    11. Steven C. Deller & Carl H. Nelson, 1991. "Measuring the Economic Efficiency of Producing Rural Road Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 194-201.
    12. Bravo-Ureta, Boris E. & Lee, Tsoung-Chao, 1988. "Socioeconomic and Technical Characteristics of New England Dairy Cooperative Members and Nonmembers," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3, pages 1-16.
    13. N. G. Kalaitzandonakes & Shunxiang Wu & Jian-chan Ma, 1992. "The Relationship between Techinical Efficiency and Firm Size Revisited," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(3), pages 427-442, November.
    14. Boris E. Bravo-Ureta, 1986. "Technical Efficiency Measures for Dairy Farms Based on a Probabilistic Frontler Function Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 34(3), pages 399-415, November.
    15. Byrnes, Patricia, et al, 1987. "Technical Efficiency and Size: The Case of Illinois Grain Farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 14(4), pages 367-381.
    16. Bagi, Faqir Singh, 1982. "Relationship Between Farm Size And Technical Efficiency In West Tennessee Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(2), pages 1-6, December.
    17. Bagi, Faqir Singh, 1982. "Relationship Between Farm Size and Technical Efficiency in West Tennessee Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 14(2), pages 139-144, December.
    18. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    19. Johnson, Jason L. & Zapata, Hector O. & Heagler, Arthur M., 1995. "Technical Efficiency in Louisiana Sugar Cane Processing," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 13(2), pages 1-14.
    20. Fernandez-Cornejo, Jorge, 1994. "Nonradial Technical Efficiency and Chemical Input Use in Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(1), pages 11-21, April.
    21. 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(1), pages 1-16, July.
    22. Fernandez-Cornejo, Jorge, 1994. "Nonradial Technical Efficiency And Chemical Input Use In Agriculture," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(1), pages 1-11, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Nuthall, 2009. "Modelling the origins of managerial ability in agricultural production ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 413-436, July.
    2. Stefan Wimmer & Johannes Sauer, 2020. "Profitability Development and Resource Reallocation: The Case of Sugar Beet Farming in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 816-837, September.
    3. Njuki, Eric & Bravo-Ureta, Boris E., 2016. "Climatic Variability and Irrigation Water Efficiency in the United States: An Empirical Assessment of the 1987-2012 Period," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235555, Agricultural and Applied Economics Association.
    4. Geys, Benny & Moesen, Wim, 2008. "Measuring local government technical (in)efficiency: An application and comparison of FDH, DEA and econometric approaches," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-21, WZB Berlin Social Science Center.
    5. Kelvin Balcombe & Iain Fraser & Laure Latruffe & Mizanur Rahman & Laurence Smith, 2008. "An application of the DEA double bootstrap to examine sources of efficiency in Bangladesh rice farming," Applied Economics, Taylor & Francis Journals, vol. 40(15), pages 1919-1925.
    6. 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.
    7. 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(3), pages 1-15, December.
    8. Kent Olson & Linh Vu, 2009. "Economic efficiency in farm households: trends, explanatory factors, and estimation methods," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 587-599, September.
    9. Lahcen Achy & Samy Ben Naceur & Adel Ben Youssef & Samir Ghazouani, 2010. "Restructuring and Efficiency in the Manufacturing Sector: A Firm Level Approach Applied to Morocco," Working Papers 565, Economic Research Forum, revised 11 Jan 2010.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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(3), pages 1-15, December.
    3. Nguyen Khac Minh & Giang Thanh Long & Bach Ngoc Thang, 2007. "Technical Efficiency of Small And Medium Manufacturing Firms in Vietnam: Parametric and Non-Parametric Approaches," Korean Economic Review, Korean Economic Association, vol. 23, pages 187-221.
    4. 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, Cambridge University Press, vol. 38(3), pages 555-574, December.
    5. Richards, Timothy J. & Jeffrey, Scott R., 2000. "Efficiency And Economic Performance: An Application Of The Mimic Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-20, July.
    6. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    7. Amin W. Mugera & Allen M. Featherstone, 2008. "Backyard Hog Production Efficiency: Evidence from the Philippines," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 267-287, September.
    8. B. E. Bravo‐Ureta & L. Rieger, 1990. "Alternative Production Frontier Methodologies And Dairy Farm Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 215-226, May.
    9. Martine Audibert, 1997. "Technical Inefficiency Effects Among Paddy Farmers in the Villages of the ‘Office du Niger’, Mali, West Africa," Journal of Productivity Analysis, Springer, vol. 8(4), pages 379-394, November.
    10. Kalaitzandonakes, Nicholas G. & Dunn, Elizabeth G., 1995. "Technical Efficiency, Managerial Ability And Farmer Education In Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-11, April.
    11. 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, Cambridge University Press, vol. 43(4), pages 515-528, November.
    12. Ahmad, Munir & Boris E., Bravo-Ureta, 1996. "Technical efficiency measures for dairy farms using panel data: a comparison of alternative model specifications," MPRA Paper 37703, University Library of Munich, Germany.
    13. Gonzalez, M. & Trujillo, L., 2007. "Efficiency measurement in the port industry: a survey of the empirical evidence," Working Papers 07/08, Department of Economics, City University London.
    14. Lachaal, Lassaad & Chebil, Ali & Dhehibi, Boubaker, 2004. "A Panel Data Approach to the Measurement of Technical Efficiency and its Determinants: Some Evidence from the Tunisian Agro-Food Industry," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(1), pages 1-9, January.
    15. Charyulu, D. Kumara, 2010. "Technical, Allocative and Economic Efficiency of Organic Input Units in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(4), pages 1-17.
    16. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    17. Guy Nkamleu, 2004. "Productivity Growth, Technical Progress and Efficiency Change in African Agriculture," African Development Review, African Development Bank, vol. 16(1), pages 203-222.
    18. Nehring, Richard F. & Christensen, Lee A. & O'Donoghue, Erik J. & Sandretto, Carmen L., 2003. "Manure and Commercial Fertilizer Nutrients Relative to Cropland and Pasture Requirements: Is the Pollution Risk Growing on Corn/Livestock Farms?," 2003 Annual meeting, July 27-30, Montreal, Canada 21980, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Subal Kumbhakar & Efthymios Tsionas & Timo Sipiläinen, 2009. "Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming," Journal of Productivity Analysis, Springer, vol. 31(3), pages 151-161, June.
    20. Andreu, Monica Lopez & Featherstone, Allen M. & Langemeier, Michael R. & Grunewald, Orlen C., 2006. "Impact of Financial Variables on Production in Kansas Farms Efficiencies," 2006 Annual meeting, July 23-26, Long Beach, CA 21406, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.