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Irrigation, Technical Efficiency, and Farm Size: The Case of Brazil

Author

Listed:
  • Gabriel A. Sampaio Morais

    (Public Policy and Sustainable Development Institute (IPPDS), Universidade Federal de Viçosa (UFV), Viçosa, Minas Gerais 36570-900, Brazil)

  • Felipe F. Silva

    (Agricultural Sciences Department, Clemson University, Clemson, SC 29634, USA)

  • Carlos Otávio de Freitas

    (Departamento de Ciências Administrativas, Universidade Federal Rural do Rio de Janeiro (UFRRJ), Seropédica, Rio de Janeiro 23890-000, Brazil)

  • Marcelo José Braga

    (Public Policy and Sustainable Development Institute (IPPDS), Universidade Federal de Viçosa (UFV), Viçosa, Minas Gerais 36570-900, Brazil)

Abstract

In developing countries, irrigation can help to decrease poverty in rural areas through increased employment in the agricultural sector. Evidence shows that irrigation may increase farm productivity and technical efficiency. In this paper, we estimate the effect of irrigation on farm technical efficiency in Brazil using the 2006 Agricultural Census dataset on more than 4 million farms. We estimate a stochastic production frontier at farm level, considering potential selection bias in irrigation adoption. We find that farms using irrigation are on average 2.51% more technically efficient compared to rain-fed farms. Our findings also suggest that while small farms are more efficient than medium and large farms, the largest difference in technical efficiency between rain-fed and irrigated farms is among large farms. Our results indicate that policies that seek to support expansion of irrigation adoption has also the potential to achieve greater rural development given the estimated effects estimated in this paper among very small and small farms, which are more than 70% of the farms in Brazil.

Suggested Citation

  • Gabriel A. Sampaio Morais & Felipe F. Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "Irrigation, Technical Efficiency, and Farm Size: The Case of Brazil," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:3:p:1132-:d:485169
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