Advanced Search
MyIDEAS: Login to save this paper or follow this series

Cost Efficiency and Farm Self-selection in Precision Farming: The Case of Czech Wheat Production

Contents:

Author Info

  • Curtiss, Jarmila
  • Jelinek, Ladislav

Abstract

This paper examines allocative and cost efficiency implications of adopting variable-rate fertiliser application using survey data from Czech wheat farms. Data Envelopment Analysis delivered higher efficiency scores for precision farming (PF) adopters. Correcting for selection bias using a one-step endogenous switching regression reveals that farms displaying a lower cost efficiency score are less likely to adopt PF technology. Nonadopters switching to PF technology would likely be affected by a significant decrease in cost efficiency given their production conditions and/or managerial and technical skills. In line with this, results indicate that human capital and farm size increase the likelihood of PF adoption. Cost (allocative efficiency) implications of PF-related changes in input structure only, on the other hand, are not found to have an impact on the choice of technology. A positive allocative efficiency effect of PF technology is brought about mainly by a farm's ability to better extrapolate the soil's productive potential, which is insufficiently reflected in the land rental prices. The allocative as well as cost efficiency implications of PF technology are further related to technology-specific responses to various farm characteristics and technological practices. PF technology makes farms' efficiency more responsive to production conditions, farm specialisation, legal form and other technological practices. The overall efficiency effect the PF practices is, therefore, conditioned on farm characteristics.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/135784
Download Restriction: no

Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 131st Seminar, September 18-19, 2012, Prague, Czech Republic with number 135784.

as in new window
Length:
Date of creation: 18 Sep 2012
Date of revision:
Handle: RePEc:ags:eaa131:135784

Contact details of provider:
Email:
Web page: http://www.eaae.org
More information through EDIRC

Related research

Keywords: Precision farming; cost efficiency; technical efficiency; allocative efficiency; Czech agriculture; endogenous switching regression; Agribusiness; Agricultural and Food Policy;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Luc Anselin & Rodolfo Bongiovanni & Jess Lowenberg-DeBoer, 2004. "A Spatial Econometric Approach to the Economics of Site-Specific Nitrogen Management in Corn Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 675-687.
  2. Tozer, Peter R., 2009. "Uncertainty and investment in precision agriculture - Is it worth the money?," Agricultural Systems, Elsevier, vol. 100(1-3), pages 80-87, April.
  3. Paxton, Kenneth W. & Mishra, Ashok K. & Chintawar, Sachin & Roberts, Roland K. & Larson, James A. & English, Burton C. & Lambert, Dayton M. & Marra, Michele C. & Larkin, Sherry L. & Reeves, Jeanne M. , 2011. "Intensity of Precision Agriculture Technology Adoption by Cotton Producers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), April.
  4. Khanna, Madhu, 1999. "Sequential Adoption Of Site-Specific Technologies And Its Implications For Nitrogen Productivity: A Double Selectivity Model," 1999 Annual meeting, August 8-11, Nashville, TN 21599, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Roberts, Roland K. & English, Burton C. & Mahajanashetti, S.B., 2000. "Evaluating The Returns To Variable Rate Nitrogen Application," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(01), April.
  6. Curtiss, Jarmila & Ratinger, Tomáš & Medonos, Tomáš, 2012. "Ownership and Investment Behaviour in Transition Countries: A Case Study of Collective and Corporate Farms in the Czech Republic," Factor Markets Working Papers 121, Centre for European Policy Studies.
  7. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:eaa131:135784. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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