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Are small‐scale rice farmers in eastern India really inefficient? Examining the effects of microtopography on technical efficiency estimates

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  • Nobuhiko Fuwa
  • Christopher Edmonds
  • Pabitra Banik

Abstract

The article analyzes how controlling for differences in land types (defined by position on a low‐scale toposequence) affects estimates of farm technical efficiency for rice farms in eastern India. Contrasting previous research, we find that farms are considerably more technically efficient when efficiency estimates are carried out at the plot level and control for plot characteristics rather than at the farm level without such controls. Estimates show farms cultivating modern varieties are technically efficient and plots planted with traditional varieties on less productive lands (upland and midupland) operate close to the production frontier. Significant technical inefficiency is found on more productive lands (medium and lowland plots) planted with traditional rice varieties. The finding that these smallholder rain‐fed rice farms are efficient cultivators on some plots contrasts with previous findings of farm‐level inefficiency (i.e., rejects overarching explanations linked to farm operator ignorance or lack of motivation) and suggests more complex explanations are required to address the inefficiency that is present.

Suggested Citation

  • Nobuhiko Fuwa & Christopher Edmonds & Pabitra Banik, 2007. "Are small‐scale rice farmers in eastern India really inefficient? Examining the effects of microtopography on technical efficiency estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 335-346, May.
    • Handle: RePEc:bla:agecon:v:36:y:2007:i:3:p:335-346
    DOI: 10.1111/j.1574-0862.2007.00211.x
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    References listed on IDEAS

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    1. Banik, Pabitra & Edmonds, Christopher & Fuwa, Nobuhiko & Kam, Suan Pheng & Villano, Lorena & Bagchi, D.K., 2004. "Natural Resource Endowments, Subsistence Agriculture, and Poverty in the Chhotanagpur Plateau," MPRA Paper 23692, University Library of Munich, Germany.
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    Cited by:

    1. Upul Yasantha, Nanayakkara Vithanage & Lokugam, H. P. Gunaratne & Kumara, Mahipala M.B.P. & Hewa, Waduge Cyril, 2014. "Comparison of Technical Efficiency and Socio-economic Status in Animal-crop Mixed Farming Systems in Dry Lowland Sri Lanka," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 4(02), pages 1-14, February.
    2. Jun Ho Seok & Hanpil Moon & GwanSeon Kim & Michael R. Reed, 2018. "Is Aging the Important Factor for Sustainable Agricultural Development in Korea? Evidence from the Relationship between Aging and Farm Technical Efficiency," Sustainability, MDPI, vol. 10(7), pages 1-15, June.
    3. Cornish, Peter S. & Karmakar, Dinabandhu & Kumar, Ashok & Das, Sudipta & Croke, Barry, 2015. "Improving crop production for food security and improved livelihoods on the East India Plateau. I. Rainfall-related risks with rice and opportunities for improved cropping systems," Agricultural Systems, Elsevier, vol. 137(C), pages 166-179.
    4. Tasso Adamopoulos & Diego Restuccia, 2022. "Geography and Agricultural Productivity: Cross-Country Evidence from Micro Plot-Level Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(4), pages 1629-1653.
    5. Chang, Hung-Hao & Wen, Fang-I, 2008. "Off-farm Work, Technical Efficiency, and Production Risk: Empirical Evidence from a National Farmer Survey in Taiwan," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Muhammad Rizwan & Ping Qing & Abdul Saboor & Muhammad Amjed Iqbal & Adnan Nazir, 2020. "Production Risk and Competency among Categorized Rice Peasants: Cross-Sectional Evidence from an Emerging Country," Sustainability, MDPI, vol. 12(9), pages 1-15, May.
    7. DONKOR, Emmanuel & OWUSU-SEKYERE, Enoch & OWUSU, Victor & JORDAAN, Henry, 2016. "Impact Of Row-Planting Adoption On Productivity Of Rice Farming In Northern Ghana," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(2), pages 1-10, October.
    8. 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, Cambridge University Press, vol. 41(3), pages 275-285, December.
    9. Hai-Dang Nguyen & Thanh Ngo & Tu DQ Le & Huong Ho & Hai T.H. Nguyen, 2019. "The Role of Knowledge in Sustainable Agriculture: Evidence from Rice Farms’ Technical Efficiency in Hanoi, Vietnam," Sustainability, MDPI, vol. 11(9), pages 1-10, April.
    10. Satya Laksana & Arie Damayanti, 2013. "Determinants of the Adoption of System of Rice Intesification in Tasikmalaya District, West Java Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201306, Department of Economics, Padjadjaran University, revised Mar 2013.
    11. Seok, Jun Ho & Reed, Michael R. & Moon, Han-Pil, 2017. "Population Aging and Growth of Developed Countries’ Agricultural Sector: Focusing on the Inverse Relationship between Aging and Cognitive Abilities," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258573, Agricultural and Applied Economics Association.
    12. Rudra Bahadur SHRESTHA & Wen-Chi HUANG & Shriniwas GAUTAM & Thomas Gordon JOHNSON, 2016. "Efficiency of small scale vegetable farms: policy implications for the rural poverty reduction in Nepal," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(4), pages 181-195.
    13. Manyeki John Kibara & Balázs Kotosz, 2022. "Are livestock farmers in Kenya efficient? Evidence from a farm-level analysis," SN Business & Economics, Springer, vol. 2(9), pages 1-30, September.

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