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Technical Change and Efficiency in Irish Agriculture

Author

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  • Suzanne O’Neill

    (Trinity College, Dublin)

  • Alan Matthews

    (Trinity College, Dublin)

Abstract

This paper calculates average technical efficiency levels and rates of technical change for Irish agriculture using an unbalanced panel of 2,603 farms drawn from the Irish National Farm Survey over the period 1984 to 1998. An average technical efficiency level of between 65 and 70 per cent with a slight upward trend over the period was found. The efficiency of individual farms is positively associated with the size of the farm household, the ratio of debt to assets and the farmer’s age, and negatively related to being located in the West of Ireland, having an off-farm job and size of farm. Technical progress is observed at an unweighted rate of approximately 0.9 per cent and a weighted rate of 2.1 per cent per annum over the 1984-98 period. There is evidence that this rate of growth has been slowing over time. Technical progress was considerably faster on farms in the East of the country compared to Western farms, on larger farms compared to smaller ones, and on dairy and tillage farms compared to cattle and sheep farms.

Suggested Citation

  • Suzanne O’Neill & Alan Matthews, 2001. "Technical Change and Efficiency in Irish Agriculture," The Economic and Social Review, Economic and Social Studies, vol. 32(3), pages 263-284.
    • Handle: RePEc:eso:journl:v:32:y:2001:i:3:p:263-284
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    References listed on IDEAS

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    Cited by:

    1. Cathal O'Donoghue & Thia Hennessy, 2014. "Chapter 03: The Agri-Food Sector," Chapters from Rural Economic Development in Ireland, in: Rural Economic Development in Ireland, edition 1, chapter 3, Rural Economy and Development Programme,Teagasc.
    2. Hayatullah Ahmadzai, 2022. "Hope for Change: Is Diversifying Production Portfolios an Ideal Strategy to Boost Farming Efficiency in Afghanistan?," Progress in Development Studies, , vol. 22(1), pages 7-31, January.
    3. Cathal O'Donoghue & Thia Hennessy, 2015. "Policy and Economic Change in the Agri-Food Sector in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(2), pages 315-337.
    4. Carol Newman & Alan Matthews, 2006. "The productivity performance of Irish dairy farms 1984–2000: a multiple output distance function approach," Journal of Productivity Analysis, Springer, vol. 26(2), pages 191-205, October.
    5. Phatima MAMARDASHVILI & Dierk SCHMID, 2013. "Performance of Swiss dairy farms under provision of public goods," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(7), pages 300-314.
    6. repec:ags:bdbjaf:258303 is not listed on IDEAS
    7. Tovar Reanos, Miguel & Martinez-Cillero, Maria, 2021. "Technical efficiency and equity effects of environmental payments in Ireland," Papers WP711, Economic and Social Research Institute (ESRI).
    8. Jean‐Paul Chavas & Doris Läpple & Bradford Barham & Emma Dillon, 2022. "An economic analysis of production efficiency: Evidence from Irish farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 153-173, June.
    9. Martinez Cillero, Maria & Breen, James & Thorne, Fiona & Wallace, Michael & Hennessy, Thia, 2016. "Technical efficiency and technology heterogeneity of beef farms: a latent class stochastic frontier approach," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236351, Agricultural Economics Society.
    10. Sophia Davidova & Laure Latruffe & Tomas Ratinger, 2005. "Performance of different institutional units in the Czech Republic and the role of external financing," Post-Print hal-02285613, HAL.
    11. Trestini, Samuele, 2006. "Technical Efficiency of Italian Beef Cattle Production Under a Heteroscedastic Non-Neutral Production Frontier Approach," Conference Papers 6683, University of Minnesota, Center for International Food and Agricultural Policy.
    12. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    13. Maria Martinez Cillero & Michael Wallace & Fiona Thorne & James Breen, 2021. "Analyzing the Impact of Subsidies on Beef Production Efficiency in Selected European Union Countries. A Stochastic Metafrontier Approach," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1903-1923, October.
    14. Hayatullah Ahmadzai, 2017. "Crop Diversification and Technical Efficiency in Afghanistan: Stochastic Frontier Analysis," Discussion Papers 2017-04, University of Nottingham, CREDIT.
    15. Anna NOWAK & Tomasz KIJEK & Katarzyna DOMAŃSKA, 2015. "Technical efficiency and its determinants in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(6), pages 275-283.
    16. Gillespie, Patrick & O'Donoghue, Cathal & Hynes, Stephen & Thorne, Fiona & Hennessy, Thia, 2015. "Milk quota and the development of Irish dairy productivity: a Malmquist index using a stochastic frontier approach," 2015 Conference, August 9-14, 2015, Milan, Italy 211684, International Association of Agricultural Economists.
    17. Bachev, Hrabrin & Koteva, Nina & Ivanov, Bojidar & Mitova, Dilyana & Boevski, Ivan & Terziev, Dimitar & Dimova, Nadejda & Dimitrova, Reneta & Marinov, Petar & Zvyatkova, Daniela & Sarov, Angel & Koste, 2021. "Холистичен Подход За Дефиниране, Оценяване И Подобряване На Конкурентоспособността На Земеделските Стопанства В България [A holistic framework for defining, evaluating, and improving the competitiv," MPRA Paper 111498, University Library of Munich, Germany.
    18. Tao Zhang, 2007. "Part-time farming: off-farm and on-farm household efficiency measurement of Ireland farm households," Working Papers 0705, Rural Economy and Development Programme,Teagasc.

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