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Measuring Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas using Data Envelopment Analysis

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  • Watkins, K. Bradley
  • Hristovska, Tatjana
  • Mazzanti, Ralph
  • Wilson, Charles E., Jr.
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    Abstract

    Large expenses associated with rice production and dependence on energy related inputs like fuel and fertilizer in particular compel rice producers to use management practices that are input efficient and result in least cost. This study uses data envelopment analysis (DEA) to calculate technical efficiency (TE), allocative efficiency (AE), and economic efficiency (EE) for rice production in Arkansas at the field level using data from 137 fields enrolled in the University of Arkansas, Rice Research Verification Program (RRVP) from 2005 to 2011. Efficiency scores for RRVP fields are compared with those obtained from developing rice producing countries. Economic efficiency scores are also compared across RRVP fields using alternative management practices. The results indicate the majority of RRVP fields have high TE scores with a mean TE score of 0.899. Over half the fields in the RRVP achieve full technical efficiency (TE scores equal to 1). Mean AE and EE scores for RRVP fields (AE = 0.696; EE = 0.625) fall within the range of mean AE and EE scores reported for developing countries producing rice. Alternative management practices appear to have an impact EE scores. Fields planted to hybrid, Clearfield-hybrid combinations, and medium grain varieties along with fields with a zero-grade and fields using multiple inlet irrigation produced higher EE scores relative to other RRVP fields.

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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida with number 142962.

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    Handle: RePEc:ags:saea13:142962

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    Keywords: Costs; data envelopment analysis; efficiency; inputs; production; rice; Farm Management; Production Economics;

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    14. Tadesse, Bedassa & Krishnamoorthy, S., 1997. "Technical efficiency in paddy farms of Tamil Nadu: an analysis based on farm size and ecological zone," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 16(3), August.
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    16. Nalley, Lawton Lanier & Barkley, Andrew P. & Brad, Watkins & Hignight, Jeffrey A., 2009. "Enhancing Farm Profitability through Portfolio Analysis: The Case of Spatial Rice Variety Selection," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 45648, Southern Agricultural Economics Association.
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