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Scale efficiency in Danish agriculture: an input distance--function approach

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  • Svend Rasmussen

Abstract

This paper presents the results of an analysis that predicts the scale efficiency of individual farms and analyses the differences in scale efficiency over time and between farms. Representative farm account data for 1985--2006 are used, and the study applies stochastic frontier analysis using an input distance--function approach. The results show that pig farms have improved their input scale efficiency significantly over time, as have dairy farms during the last few years after a period of constant scale efficiency. Crop farms have the lowest scale efficiency, and there is a considerable potential for improving productivity in the cash crop sector by increasing the size of the farms. It is shown that a change in scale efficiency and technological change are the major components of aggregate productivity changes for all farm types. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Svend Rasmussen, 2010. "Scale efficiency in Danish agriculture: an input distance--function approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(3), pages 335-367, September.
  • Handle: RePEc:oup:erevae:v:37:y:2010:i:3:p:335-367
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    File URL: http://hdl.handle.net/10.1093/erae/jbq023
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    References listed on IDEAS

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    1. Richard E. Just & Rulon D. Pope, 1979. "Production Function Estimation and Related Risk Considerations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 276-284.
    2. Ayal Kimhi, 1995. "Differential Human Capital Investments and the Choice of Successor in Family Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 719-724.
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    Cited by:

    1. Duvaleix-Tréguer, Sabine & Gaigné, Carl, 2015. "Producer Organizations and Members Performance in Hog Production," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205494, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    2. Jean Joseph Minviel & Kristof De Witte, 2016. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," Working Papers SMART - LERECO 16-10, INRA UMR SMART-LERECO.
    3. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.
    4. Jesse B. Tack & Rulon D. Pope & Jeffrey T. LaFrance & Ricardo H. Cavazos, 2015. "Modelling an aggregate agricultural panel with application to US farm input demands," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, pages 371-396.
    5. Arne Henningsen & Tomasz Gerard Czekaj & Björn Forkman & Mogens Lund & Aske Schou Nielsen, 2016. "The relationship between animal welfare and economic performance at farm level: A quantitative study of Danish pig producers," IFRO Working Paper 2016/05, University of Copenhagen, Department of Food and Resource Economics.
    6. Sabine Duvaleix-Tréguer & Carl Gaigné, 2016. "On the nature and magnitude of cost economies in hog production," Agricultural Economics, International Association of Agricultural Economists, pages 465-476.
    7. Luik, Helis & Viira, Ants-Hannes & Värnik, Rando, 2014. "Using the information about dairy herd’s genetic level and milk quality in explaining the technical efficiency of Estonian dairy farms: a two-stage (DEA and Tobit) approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182650, European Association of Agricultural Economists.
    8. Jakob Vesterlund Olsen & Arne Henningsen, 2011. "Investment Utilisation, Adjustment Costs, and Technical Efficiency in Danish Pig Farms," IFRO Working Paper 2011/13, University of Copenhagen, Department of Food and Resource Economics.
    9. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    10. Camelia Burja, 2012. "Determinants Of The Agricultural Productivity Growth Among Romanian Regions," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, pages 1-18.
    11. A. Wondemu Kifle, 2016. "Working Paper 237 - Decomposing Sources of Productivity Change in Small-Scale Farming in Ethiopia," Working Paper Series 2332, African Development Bank.
    12. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2011. "Productivity and Subsidies in European Union Countries: An Analysis for Dairy Farms Using Input Distance Frontiers," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114396, European Association of Agricultural Economists.
    13. Nguyen, Huy, 2014. "Crop diversification, economic performance and household’s behaviours Evidence from Vietnam," MPRA Paper 59090, University Library of Munich, Germany.
    14. Tomasz Gerard Czekaj & Arne Henningsen, 2012. "Comparing Parametric and Nonparametric Regression Methods for Panel Data: the Optimal Size of Polish Crop Farms," IFRO Working Paper 2012/12, University of Copenhagen, Department of Food and Resource Economics.
    15. Wettemann, Patrick Johannes Christopher & Latacz-Lohmann, Uwe, 2017. "An efficiency-based concept to assess potential cost and greenhouse gas savings on German dairy farms," Agricultural Systems, Elsevier, pages 27-37.
    16. repec:oup:ajagec:v:99:y:2017:i:3:p:783-799. is not listed on IDEAS
    17. Hering, Imke & Mußhoff, Oliver, 2016. "Loan Defaults In Microfinance - Forewarned Is Forearmed," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244780, German Association of Agricultural Economists (GEWISOLA).
    18. repec:eee:agisys:v:153:y:2017:i:c:p:148-156 is not listed on IDEAS
    19. Cagdas, Ali D. & Jeffrey, Scott R. & Smith, Elwin G. & Boxall, Peter C., 2013. "Adoption of BMPs and technical inefficiency in Canadian canola production," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150200, Agricultural and Applied Economics Association.
    20. Alphonse G. Singbo & Bruno Larue, 2014. "Scale Economies and Technical Efficiency of Quebec Dairy Farms," Cahiers de recherche CREATE 2014-7, CREATE.
    21. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2012. "Productivity and Subsidies in the European Union: An Analysis for Dairy Farms Using Input Distance Frontiers," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126846, International Association of Agricultural Economists.

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