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Agricultural Policies and Technical Efficiency of Wheat Production in Kazakhstan and Russia: Evidence from a Stochastic Frontier Approach

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  • Tleubayev, Alisher
  • Bobojonov, Ihtiyor
  • Götz, Linde

Abstract

We utilize a unique primary data set of farms in Russia and Kazakhstan to investigate the link between policy reforms and technical efficiency. These countries have heavily subsidized their domestic agricultural production over the last decade, with a total of around USD 76 billion USD and USD 11.5 billion USD in government funding directed towards the agricultural sectors in Russia and Kazakhstan, respectively. Results of a stochastic frontier analysis make evident that variable inputs, such as fertilizer, have a relatively large influence on wheat production compared to land. Nearly every fifth farm has a technical efficiency level lower than 60%, suggesting significant unrealized production potential. While our analysis shows a negative relation between subsidies and efficiency, other factors, such as farmer’s education, cooperative and agroholding membership, and participation in insurance programs, are positively related to farm efficiency. The results imply that the governments and policymakers could mobilize the unutilized wheat production potential by improving the farmer education system, fostering cooperation among farms, and developing functioning farm insurance schemes.

Suggested Citation

  • Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde, 2022. "Agricultural Policies and Technical Efficiency of Wheat Production in Kazakhstan and Russia: Evidence from a Stochastic Frontier Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 54(3), pages 407-421, August.
  • Handle: RePEc:cup:jagaec:v:54:y:2022:i:3:p:407-421_1
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    Cited by:

    1. Changjun Zheng & Sinamenye Jean-Petit, 2023. "The Effects of the Interactions Between Agro-Production, Economic, and Financial Development on Bank Sustainability," SAGE Open, , vol. 13(2), pages 21582440231, June.
    2. Yungang Tang & Haojie Liao & Ye Wu & Gang Lei, 2024. "Unravelling the bidirectional impact of Chinese agricultural subsidy policy on agricultural efficiency and farmers' income through panel data analysis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(4), pages 165-177.

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