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Exploring the Role of Managerial Ability in Influencing Dairy Farm Efficiency

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  • Byma, Justin P.
  • Tauer, Loren W.

Abstract

This paper explores the role of managerial ability in determining efficiency in New York dairy farms. Using an unbalanced panel of farm data from 1993 through 2004, we estimate output-oriented technical efficiencies using stochastic distance frontier functions. We find that both lagged net farm income and farmers’ own estimates of the value of their labor and management as proxies for managerial ability impact measured efficiency. Efficiency increases with operator education, farm size, and extended participation in a farm management program, but decreases with operator age.

Suggested Citation

  • Byma, Justin P. & Tauer, Loren W., 2010. "Exploring the Role of Managerial Ability in Influencing Dairy Farm Efficiency," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 39(3), pages 1-12, October.
    • Handle: RePEc:ags:arerjl:95594
    DOI: 10.22004/ag.econ.95594
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    Cited by:

    1. Gallacher, M. & Lema, D., 2018. "Returns to Managerial Ability and Technical Efficiency in Argentina Dairy Farms," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277323, International Association of Agricultural Economists.
    2. Alvarez, Antonio & del Corral, Julio & Tauer, Loren W., 2012. "Modeling Unobserved Heterogeneity in New York Dairy Farms: One-Stage versus Two-Stage Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-11, December.
    3. Niskanen, Olli & Heikkilä, Anna-Maija, 2015. "The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(1), pages 65-77, April.
    4. Plogmann, Jana & Mußhoff, Oliver & Odening, Martin & Ritter, Matthias, 2022. "Farm growth and land concentration," Land Use Policy, Elsevier, vol. 115(C).
    5. Jamali, Hisnol & T, Sutrisno & Subekti, & Assih, Prihat, 2017. "The Influence of Corporate Governance and Corporate Social Responsibility on Financial Performancewith Efficiency as Mediating Variable," INA-Rxiv t796p, Center for Open Science.
    6. Alvarez, Antonio & del Corral, Julio & Tauer, Loren W., 2012. "Modeling Unobserved Heterogeneity in New York Dairy Farms: One-Stage versus Two-Stage Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-11, December.

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