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Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers

Author

Listed:
  • Pantzios, Christos J.
  • Rozakis, Stelios
  • Tzouvelekas, Vangelis

Abstract

The present paper examines the importance that efficient resource use may have for cotton growers under the current EU policy regime. To that end, input-oriented technical and scale efficiency scores for a sample of 172 cotton-growing farms are empirically quantified. The results suggest that cotton farms in the sample are not efficient mainly due to the nature of the policy regime governing the sector throughout EU. By becoming efficient, the co-responsibility levy will be reduced by 18.3% and farms may increase their profits by 50.1% on the average.

Suggested Citation

  • Pantzios, Christos J. & Rozakis, Stelios & Tzouvelekas, Vangelis, 2006. "Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(3), pages 555-574, December.
    • Handle: RePEc:cup:jagaec:v:38:y:2006:i:03:p:555-574_02
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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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