IDEAS home Printed from https://ideas.repec.org/a/ags/fabtho/36807.html
   My bibliography  Save this article

An Estimation of the Efficient Size of Sugarcane Enterprises for Farmers in Trinidad

Author

Listed:
  • Palmer, Donald W.
  • Pemberton, Carlisle A.

Abstract

This research paper provides an estimation of the efficient size of operation for sugarcane farmers in Trinidad. The estimates were based on a sample of two hundred and twenty-seven farmers selected from a cost of sugarcane production survey. To identify the efficient size of operation the ordinary least square estimation technique was used. The identification of the efficient size of operation allowed a test of the hypothesis that the minimum point on the long run average cost curve was significantly greater than the average enterprise size of six acres. The long run total cost curve was estimated and the cubic functional form provided the best fit based on both the adjusted R2 and the result from the Wald test. The results of the estimation process indicated that the optimal size was 32 acres of sugarcane and that 98% of the farmers operated at less than this size.

Suggested Citation

  • Palmer, Donald W. & Pemberton, Carlisle A., 2007. "An Estimation of the Efficient Size of Sugarcane Enterprises for Farmers in Trinidad," Farm and Business - The Journal of the Caribbean Agro-Economic Society, Caribbean Agro-Economic Society, vol. 7(1).
    • Handle: RePEc:ags:fabtho:36807
    DOI: 10.22004/ag.econ.36807
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/36807/files/Farm%20and%20Business%202007%207%20%201%201-16.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.36807?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Antonio Alvarez & Carlos Arias, 2003. "Diseconomies of Size with Fixed Managerial Ability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 134-142.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. World Bank, 2009. "Land Reform, Rural Development, and Poverty in the Philippines : Revisiting the Agenda," World Bank Publications - Reports 18545, The World Bank Group.
    2. Raul V. Fabella, 2014. "Comprehensive Agrarian Reform Program (CARP): Time to let go," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 1-18, June.
    3. Raul V. Fabella, 2014. "Comprehensive Agrarian Reform Program (CARP): Time to Let Go," UP School of Economics Discussion Papers 201402, University of the Philippines School of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nick Zubanov & W.S. Siebert, 2009. "Management economics in a large UK retailer," CPB Discussion Paper 125, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Almuhanad Melhim & Erik J. O'Donoghue & C. Richard Shumway, 2009. "Do the Largest Firms Grow and Diversify the Fastest? The Case of U.S. Dairies," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(2), pages 284-302, June.
    3. Bill Greene with Antonio Alvarez (Univ. of Oviedo) & Carlos Arias (Univ. of Leon), 2004. "Accounting For Unobservables In Production Models: Management And Inefficiency," Econometric Society 2004 Australasian Meetings 341, Econometric Society.
    4. Kawasaki, Kentaro, 2010. "The costs and benefits of land fragmentation of rice farms in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-18.
    5. Renwick, Alan W. & Revoredo-Giha, Cesar & Reader, Mark A., 2005. "Uk Sugar Beet Farm Productivity Under Different Reform Scenarios: A Farm Level Analysis," Environmental Economy and Policy Research Discussion Papers 31936, University of Cambridge, Department of Land Economy.
    6. Mosheim, Roberto & Lovell, C.A. Knox, 2006. "Economic Efficiency, Structure and Scale Economies in the U.S. Dairy Sector," 2006 Annual meeting, July 23-26, Long Beach, CA 21440, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Barros, Carlos P. & Chen, Zhongfei & Liang, Qi Bin & Peypoch, Nicolas, 2011. "Technical efficiency in the Chinese banking sector," Economic Modelling, Elsevier, vol. 28(5), pages 2083-2089, September.
    8. Tauer, Loren W. & Mishra, Ashok K., 2006. "Can the small dairy farm remain competitive in US agriculture?," Food Policy, Elsevier, vol. 31(5), pages 458-468, October.
    9. Thomas Triebs & Subal C. Kumbhakar, 2012. "Management Practice in Production," ifo Working Paper Series 129, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    10. Phu Nguyen-Van & Nguyen To-The, 2016. "Technical efficiency and agricultural policy: evidence from the teaproduction in Vietnam," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(3), pages 173-184.
    11. Xiaoheng Zhang & Xiaohua Yu & Xu Tian & Xianhui Geng & Yingheng Zhou, 2019. "Farm size, inefficiency, and rice production cost in China," Journal of Productivity Analysis, Springer, vol. 52(1), pages 57-68, December.
    12. Rasmussen, Svend, 2011. "Estimating the Technical Optimal Scale of Production in Danish Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114790, European Association of Agricultural Economists.
    13. Siebert, W. Stanley & Zubanov, Nick, 2008. "Management Economics in a Large Retail Organization," IZA Discussion Papers 3645, Institute of Labor Economics (IZA).
    14. Antonio Alvarez & Carlos Arias, 2014. "A selection of relevant issues in applied stochastic frontier analysis," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 3-11.
    15. Millan, Joaquin, 2004. "Scale and the Efficiency Production Function," Efficiency Series Papers 2004/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    16. Nuthall, Peter, 2009. "Modelling the origins of managerial ability in agricultural production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-24.
    17. Duvaleix-Tréguer, Sabine & Gaigné, Carl, 2015. "Producer Organizations and Members Performance in Hog Production," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205494, Agricultural and Applied Economics Association.
    18. Dalton, Timothy J., 2004. "Indivisible And Spatial Components Of Dairy Firm Efficiency," 2004 Annual meeting, August 1-4, Denver, CO 20320, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Fanny Le Gloux & Marie Laporte & Sabine Duvaleix-Treguer & Pierre Dupraz & Elodie Letort, 2021. "Cost of changing dairy cows' diet to reduce enteric methane emissions in livestock farms [Coût de la modification du régime alimentaire des vaches laitières permettant de réduire les émissions de m," Working Papers hal-03261368, HAL.
    20. Han Zhang & Dongli Wu, 2023. "The Impact of Agricultural Factor Inputs, Cooperative-Driven on Grain Production Costs," Agriculture, MDPI, vol. 13(10), pages 1-17, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:fabtho:36807. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/caestea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.