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Estimation of Technical Efficiency for Rice Farms in Central Thailand Using Stochastic Frontier Approach

Author

Listed:
  • Kallika Taraka

    (Department of Agribusiness and Information System, Faculty of Agriculture, Universiti Putra Malaysia)

  • Ismail Abd. Latif

    (Universiti Putra Malaysia)

  • Shaufique bin Ahmad Sidique

    (Universiti Putra Malaysia)

  • Mad Nasir Shamsudin

    (Universiti Putra Malaysia)

Abstract

As one of Thailand's economic crops, rice plays an important role in generating national income and creating domestic employment for the country. Its production has been increasing because of the expansion of areas planted to rice and not due to increases in productivity. The national average yield is considerably low compared with that of other rice-producing countries. This study measured the technical efficiency of rice farmers in the central region of Thailand and identified the factors causing technical inefficiency using stochastic frontier analysis (SFA) approach specified as a translog production function. Cross-sectional data were randomly collected from 384 sampled farmers from nine provinces of central Thailand who generally operated their farms using pre-germinated broadcasting method in the major rice crop year 2009/2010. Results reveal that technical efficiency ranged from 49.69 to 97.17 percent, with a mean of 85.35 percent. Gender, farming experience, good agricultural practices (GAP), and cropping intensity were found to contribute positively toward farm technical efficiency. Farmers should be provided knowledge of GAP and should adopt GAP in their farms' activities. Agricultural extension officers should organize knowledge and experience exchange between successful farmers and other farmers, and promote the use of certified seeds to improve farm efficiency and farmers' income.

Suggested Citation

  • Kallika Taraka & Ismail Abd. Latif & Shaufique bin Ahmad Sidique & Mad Nasir Shamsudin, 2012. "Estimation of Technical Efficiency for Rice Farms in Central Thailand Using Stochastic Frontier Approach," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 9(2), pages 1-11, December.
    • Handle: RePEc:sag:seajad:v:9:y:2012:i:2:p:1-11
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    Citations

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    Cited by:

    1. Wirat Krasachat & Suthathip Yaisawarng, 2021. "Directional Distance Function Technical Efficiency of Chili Production in Thailand," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    2. Roengchai Tansuchat, 2023. "A Copula-Based Meta-Stochastic Frontier Analysis for Comparing Traditional and HDPE Geomembranes Technology in Sea Salt Farming among Farmers in Phetchaburi, Thailand," Agriculture, MDPI, vol. 13(4), pages 1-23, March.
    3. World Bank, 2020. "No One Left Behind," World Bank Publications - Reports 34163, The World Bank Group.
    4. Thi-Hien Vu & Ke-Chung Peng & Rebecca H. Chung, 2019. "Evaluation of Environmental Efficiency of Edible Canna Production in Vietnam," Agriculture, MDPI, vol. 9(11), pages 1-14, November.
    5. Nguyen To The & Anh Nguyen Tuan, 2019. "Efficiency and adoption of organic tea production: Evidence from Vi Xuyen district, Ha Giang province, Vietnam," Asia-Pacific Journal of Regional Science, Springer, vol. 3(1), pages 201-217, February.
    6. Wirat Krasachat, 2023. "The Effect of Good Agricultural Practices on the Technical Efficiency of Chili Production in Thailand," Sustainability, MDPI, vol. 15(1), pages 1-25, January.

    More about this item

    Keywords

    technical efficiency; stochastic frontier analysis (SFA); rice farms; Thailand;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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