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Productivity and Subsidies in the European Union: An Analysis for Dairy Farms Using Input Distance Frontiers

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  • Latruffe, Laure
  • Bravo-Ureta, Boris E.
  • Moreira, Victor H.
  • Desjeux, Yann
  • Dupraz, Pierre

Abstract

This paper examines the association between agricultural subsidies and farm efficiency using data from the European Farm Accountancy Data Network (FADN) for operations specializing on dairy. The analysis covers the 18 year period going from 1990 to 2007 and includes eleven countries: Belgium, Denmark, France, Germany, Ireland, Italy, Luxemburg, the Netherlands, Portugal, Spain, and the United Kingdom. Separate translog stochastic input distance frontiers are estimated for each country. Results show high technical efficiency averages and positive average rates of technological change. In addition, higher subsidy dependence and larger size are significantly associated with lower technical efficiency across all eleven countries.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:iaae12:126846
    DOI: 10.22004/ag.econ.126846
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    Cited by:

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    2. 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.
    3. FANDEL, Peter, 2014. "What Is Behind Biased Technical Change In Production Of Cereal And Oilseed Crops In Slovakia?," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-7, September.
    4. Cillero, Maria Martinez & Breen, James & Thorne, Fiona & Wallace, Michael, 2017. "The effect of the implementation of the 2003 Mid-Term Review of the CAP on technical efficiency of beef production. A comparative analysis," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258617, Agricultural Economics Society.
    5. Cechura, Lukas & Grau, Aaron & Hockmann, Heinrich & Levkovych, Inna & Kroupova, Zdenka, 2014. "Catching up or falling behind in Eastern European agriculture – the case of milk production," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 168927, European Association of Agricultural Economists.
    6. Zbranek, Peter & Fandel, Peter, 2015. "Development of productivity and its components in Slovak agriculture before and after EU accession: Analysis of the impact of CAP introduction on the performance indicators of Slovak crop and livestoc," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207353, Italian Association of Agricultural and Applied Economics (AIEAA).
    7. Czekaj, Tomasz G., 2015. "Measuring the Technical Efficiency of Farms Producing Environmental Output: Semiparametric Estimation of Multi-output Stochastic Ray Production Frontiers," 2015 Conference, August 9-14, 2015, Milan, Italy 211555, International Association of Agricultural Economists.
    8. Jerzy Marzec & Andrzej Pisulewski, 2017. "The Effect of CAP Subsidies on the Technical Efficiency of Polish Dairy Farms," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 9(3), pages 243-273, September.

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