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The Conservation Reserve Program, Off-Farm Work, and Farm Household Technical Efficiencies

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  • Chang, Hung-Hao
  • Boisvert, Richard N.

Abstract

Using data from a national survey of farm households in the United States, this paper examines the effects of farm households’ decisions to participate in the Conservation Reserve Program (CRP) and to work off the farm on the technical efficiency of farm household production. After controlling for the self selection bias in estimating the multiple output-oriented distance functions, results show that operators’ decisions to work off the farm (both separately and combined with participation in CRP) lead to higher technical efficiencies for farm household production— implying improvements in the resource allocation between farm and other productive activities by farm households. The technical efficiencies of household production of those farm households participating only in the CRP are lower.

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File URL: http://purl.umn.edu/57034
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Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 57034.

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Date of creation: 20 Dec 2009
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Handle: RePEc:ags:cudawp:57034
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Keywords: Conservation Reserve Program; off-farm work; household technical efficiency; Agribusiness; Agricultural Finance; Farm Management;

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