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A study of economic efficiency of Iranian farmers in Ramjerd district: an application of stochastic programming

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  • Javad Torkamani
  • J. Brian Hardaker

Abstract

An extension of utility‐efficient programming to the non‐linear discrete stochastic programming method was developed and used in the analysis of the economic efficiency of a sample of farmers in Iran. The results indicate that it would be feasible to increase substantially farmers' total net revenue by increasing their economic efficiency in terms of technical and allocative efficiencies. The study further suggested that risk aversion plays an important role in farmers' behaviour. The sample farmers are risk averse and hence are likely to trade higher expected profits for lower risk. Understanding this characteristic is important for interventions intended to raise farm productivity and efficiency.

Suggested Citation

  • Javad Torkamani & J. Brian Hardaker, 1996. "A study of economic efficiency of Iranian farmers in Ramjerd district: an application of stochastic programming," Agricultural Economics, International Association of Agricultural Economists, vol. 14(2), pages 73-83, July.
    • Handle: RePEc:bla:agecon:v:14:y:1996:i:2:p:73-83
    DOI: 10.1111/j.1574-0862.1996.tb00404.x
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    Cited by:

    1. Lin Liu & Honggang Sun, 2019. "The Impact of Collective Forestland Tenure Reform on the Forest Economic Efficiency of Farmers in Zhejiang Province," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    2. Dhungana, Basanta R. & Nuthall, Peter L. & Nartea, Gilbert V., 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 1-23.
    3. Omezzine, Abdallah & Zaibet, Lokman, 1998. "Management of modern irrigation systems in oman: allocative vs. irrigation efficiency," Agricultural Water Management, Elsevier, vol. 37(2), pages 99-107, July.
    4. Flaten, O. & Lien, G., 2007. "Stochastic utility-efficient programming of organic dairy farms," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1574-1583, September.
    5. Pascual, Unai, 2005. "Land use intensification potential in slash-and-burn farming through improvements in technical efficiency," Ecological Economics, Elsevier, vol. 52(4), pages 497-511, March.
    6. Dorward, Andrew, 1999. "Modelling embedded risk in peasant agriculture: methodological insights from northern Malawi," Agricultural Economics, Blackwell, vol. 21(2), pages 191-203, October.
    7. Obayelu, A. E. & Afolami, Caroline A. & Agbonlahor, M.U., 2013. "Comparative Analysis of Resource Use Efficiency among Various Production Scale Operators in Cassava-Based Mixed Cropping Systems of Ogun and Oyo States of South west, Nigeria," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160123, African Association of Agricultural Economists (AAAE).
    8. Dhungana, Basanta R. & Nuthall, Peter L. & Nartea, Gilbert V., 2000. "Explaining Economic Inefficiency Of Nepalese Rice Farms: An Empirical Investigation," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123630, Australian Agricultural and Resource Economics Society.
    9. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.
    10. Jirgi, A.J. & Ogundeji, Abiodun A. & Viljoen, Machiel F. & Adiele, M.A., 2010. "Resource Use Efficiency of Millet/Cowpea Intercropping in Niger State, Nigeria," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 113786, African Association of Agricultural Economists (AAAE).
    11. Ahumada, Omar & Villalobos, J. Rene, 2009. "Application of planning models in the agri-food supply chain: A review," European Journal of Operational Research, Elsevier, vol. 196(1), pages 1-20, July.
    12. Rougoor, Carin W. & Trip, Ger & Huirne, Ruud B. M. & Renkema, Jan A., 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, Blackwell, vol. 18(3), pages 261-272, May.

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