Technical Efficiency of the Crop Farms under the Various CAP Reforms: Empirical Studies for Germany, the Netherlands and Sweden
AbstractWe analyse the impacts of the CAP reforms on the technical efficiency of the crop farms. We use an output distance function and an inefficiency effects model which incorporates the influences of exogenous variables on farm efficiency. We formulate policy variables (e.g. the CAP subsidies) and producer characteristics as explanatory variables in the inefficiency effects model. We use the 1995- 2004 FADN data to estimate the production frontiers of the crop farms in Germany, Netherlands and Sweden, to derive their technical efficiency, and to determine the effects of the explanatory variables. The study shows that the 10-year average technical efficiency of crop farms is 59% in Germany, 75% in Netherlands, and 70% in Sweden. The average annual technical efficiency change is 0.1%, 0.7% and 2.7% respectively for Germany, Netherlands and Sweden.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6589.
Date of creation: 2008
Date of revision:
technical efficiency; the CAP reform; frontier models; crop farming; Agricultural and Food Policy; Farm Management; Research and Development/Tech Change/Emerging Technologies;
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