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The Relationship between Direct Payments and Efficiency on Swiss Farms

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  • Ferjani, Ali

Abstract

Economic theory suggests several possible mechanisms through which direct government farm payments might influence the efficiency and structural change in agriculture. This study estimates identify the main determinants of efficiency, particularly, what effect farm payments have had on efficiency and farm structure by using a farm-level Tobit model for 1990 to 2001. The results suggest that the inclusion of direct payments does not cause a change in returns to scale of the underlying technology. Nevertheless, results find evidence of effects of direct payments on efficiency. Farms that received greater direct payments were less efficient on aggregate than other farms.

Suggested Citation

  • Ferjani, Ali, 2009. "The Relationship between Direct Payments and Efficiency on Swiss Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(1), pages 1-10.
    • Handle: RePEc:ags:aergaa:93806
    DOI: 10.22004/ag.econ.93806
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    References listed on IDEAS

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    1. Lordkipanidze, Nazibrola & Tauer, Loren W., 2000. "Farmer Efficiency and Technology Use with Age," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(1), pages 24-31, April.
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    Cited by:

    1. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.
    2. Mamardashvili, Phatima & Bokusheva, Raushan & Schmid, Dierk, 2014. "Heterogeneous Farm Output and Technical Efficiency Estimates," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(1).
    3. 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.
    4. Stefan Mann & Andrei Stoinescu, 2021. "Exploring Draheim's three dimensions of success in cooperative organizations—the case of collective Alpine summer farms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(4), pages 587-602, December.
    5. Mamardashvili, Phatima & Emvalomatis, Grigorios & Jan, Pierrick, 2016. "Environmental Performance and Shadow Value of Polluting on Swiss Dairy Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    6. Agnė Žičkienė & Rasa Melnikienė & Mangirdas Morkūnas & Artiom Volkov, 2022. "CAP Direct Payments and Economic Resilience of Agriculture: Impact Assessment," Sustainability, MDPI, vol. 14(17), pages 1-24, August.

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