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The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability for Corn Farms

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  • Nehring, Richard F.
  • Fernandez-Cornejo, Jorge

Abstract

This paper estimates returns to scale and technical efficiency of corn farms following an input distance function approach and compares the relative performance of farm operator households with and without off-farm wages and salaries. We use 1995-2003 USDA data. The input distance function results suggest that off-farm outputs and inputs can be modeled in a multi-activity framework, which materially alter performance measures in the Corn Belt. We find that off-farm income boosts scale and technical efficiency of smaller operations. We also find that the number of hours worked off-farm by the spouse contributes to a higher technical efficiency.

Suggested Citation

  • Nehring, Richard F. & Fernandez-Cornejo, Jorge, 2005. "The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability for Corn Farms," 2005 Annual meeting, July 24-27, Providence, RI 19566, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19566
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    References listed on IDEAS

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    6. Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
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    10. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
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    Keywords

    Farm Management;

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