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

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  • Nehring, Richard
  • hallahan, Charlie

Abstract

This paper estimates technical efficiency on rice farms, following a translog stochastic production frontier (SPF) approach and compares the relative performance of farm operator households with and without off-farm wages and salaries. We use 2000, 2006 and 2013 USDA data for rice producing states-identifying different performance measures. Previous studies suggest that off-farm work influences economic performance—by “improving” managerial performance. We find that off-farm income generally boosts scale and technical efficiency on smaller, mid-size and larger operations, and is also consistent with higher farm and household returns. We also find that the number of hours worked off-farm by the operator contributes to a higher technical efficiency on larger typologies.

Suggested Citation

  • Nehring, Richard & hallahan, Charlie, 2015. "The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability Rice Farms," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196841, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea15:196841
    DOI: 10.22004/ag.econ.196841
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    References listed on IDEAS

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    1. Vince Breneman, 2006. "Urban Influence on Costs of Production in the Corn Belt," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 930-946.
    2. Dorfman, Jeffrey H. & Koop, Gary, 2005. "Current developments in productivity and efficiency measurement," Journal of Econometrics, Elsevier, vol. 126(2), pages 233-240, June.
    3. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
    4. Dubman, Robert, 2000. "Variance Estimation With USDA's Farm Costs and Returns Surveys and Agricultural Resource Management Study Surveys," Staff Reports 276685, United States Department of Agriculture, Economic Research Service.
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    1. Ghanem, Marwa Ghareeb & Shafei, Mahmoud A. & El-Rasoul, Ahmed Abou El-Yazid, 2017. "The economic efficiency analysis of some rice mills in Egypt by using DEA and SFA," MPRA Paper 98196, University Library of Munich, Germany.

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