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A Nonparametric Analysis Of Efficiency For A Sample Of Kansas Beef Cow Farms

  • Featherstone, Allen M.
  • Langemeier, Michael R.
  • Ismet, Mohammad

Competitive pressures in the cow-calf sector increased in 1995 because of a decline of 27% in calf prices. Technical, allocative, and scale efficiency measures were used to examine the competitiveness of a sample of Kansas beef cow farms. On average, the farms were 78% technically efficient, 81% allocatively efficient, and 95% scale efficient. Enterprise profitability was correlated positively with the efficiency measures. Inefficiency was related to herd size and degree of specialization. Producers should focus on using capital, feed, and labor more efficiently rather that increasing their size. Increased concentration of the cow-calf sector will not result in large cost savings given the current technology.

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File URL: http://purl.umn.edu/15547
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Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 29 (1997)
Issue (Month): 01 (July)
Pages:

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Handle: RePEc:ags:joaaec:15547
Contact details of provider: Web page: http://www.saea.org/jaae/jaae.htm
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  1. Featherstone, Allen M. & Moghnieh, Ghassan A. & Goodwin, Barry K., 1995. "Farm-level nonparametric analysis of cost-minimization and profit-maximization behavior," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 13(2), November.
  2. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
  3. Drabenstott, Mark, 1994. "Industrialization: Steady Current or Tidal Wave?," Choices, Agricultural and Applied Economics Association, vol. 9(4).
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