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Technical Efficiency and Size: The Case of Illinois Grain Farms

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  • Byrnes, Patricia, et al

Abstract

In this paper, the relative productive performance of a sample of Illinois grain farms is gauged using Farrell-type measures of technical efficiency. Mathematical pr ogramming methods are used to envelop the data to form a multiple-out put, multiple-input technology relative to which the performance of i ndividual farms is assessed. Using a decomposition of those measures developed by R. Fare, S. Grosskopf, and C. A. K. Lovell (1985), it wa s found that the major source of inefficiency was deviation from most productive size of the large farms in the sample. Coauthors are R. F are, S. Grosskopf, and S. Kraft. Copyright 1987 by Oxford University Press.

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  • Byrnes, Patricia, et al, 1987. "Technical Efficiency and Size: The Case of Illinois Grain Farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 14(4), pages 367-381.
    • Handle: RePEc:oup:erevae:v:14:y:1987:i:4:p:367-81
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    Cited by:

    1. Ernesto Lopez‐Valeiras & Jacobo Gomez‐Conde & Teresa Fernandez‐Rodriguez, 2016. "Firm Size and Financial Performance: Intermediate Effects of Indebtedness," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 454-465, November.
    2. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    3. Wu, Shunxiang & Prato, Anthony A., 2006. "Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(3), pages 1-15, December.
    4. Ahearn, Mary & Whittaker, Gerald & Glaze, Dargan, 1990. "Cost Distribution And Efficiency Of Corn Production," 1990 Conference, January 6-9, Albuquerque, New Mexico 260175, Regional Research Committe NC-181: Determinants of Farm Size and Structure.
    5. Neff, David L. & Garcia, Philip & Hornbaker, Robert H., 1991. "Efficiency Measures Using The Ray-Homothetic Function: A Multiperiod Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-9, December.
    6. Ahmad, Munir & Boris E., Bravo-Ureta, 1996. "Technical efficiency measures for dairy farms using panel data: a comparison of alternative model specifications," MPRA Paper 37703, University Library of Munich, Germany.
    7. Morrison Paul, Catherine J. & Nehring, Richard F. & Banker, David E. & Breneman, Vincent E., 2001. "Productivity Growth, Technological Progress, and Technical Efficiency in the Heartland and Southern Cotton States:1996-1999," 2001 Annual meeting, August 5-8, Chicago, IL 20679, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. B. E. Bravo‐Ureta & L. Rieger, 1990. "Alternative Production Frontier Methodologies And Dairy Farm Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 215-226, May.
    9. Arnade, Carlos Anthony & Trueblood, Michael A., 2002. "Estimating A Profit Function In The Presence Of Inefficiency: An Application To Russian Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-20, July.
    10. Bachev, Hrabrin & Koteva, Nina & Ivanov, Bojidar & Mitova, Dilyana & Boevski, Ivan & Terziev, Dimitar & Dimova, Nadejda & Dimitrova, Reneta & Marinov, Petar & Zvyatkova, Daniela & Sarov, Angel & Koste, 2021. "Холистичен Подход За Дефиниране, Оценяване И Подобряване На Конкурентоспособността На Земеделските Стопанства В България [A holistic framework for defining, evaluating, and improving the competitiv," MPRA Paper 111498, University Library of Munich, Germany.
    11. Mugera, Amin W. & Langemeier, Michael R., 2011. "Does Farm Size and Specialization Matter for Productive Efficiency? Results from Kansas," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(4), pages 1-14, November.
    12. Nguyen Khac Minh & Giang Thanh Long & Bach Ngoc Thang, 2007. "Technical Efficiency of Small And Medium Manufacturing Firms in Vietnam: Parametric and Non-Parametric Approaches," Korean Economic Review, Korean Economic Association, vol. 23, pages 187-221.
    13. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-16, July.
    14. Kaddour Hadri & Julie Whittaker, 1999. "Efficiency, Environmental Contaminants and Farm Size: Testing for Links Using Stochastic Production Frontiers," Journal of Applied Economics, Universidad del CEMA, vol. 2, pages 337-356, November.
    15. Munir Ahmad & Boris E. Bravo-Ureta, 1995. "An Econometric Decomposition of Dairy Output Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 914-921.
    16. Tayyaba Hina & Muhammad Asad ur Rehman Naseer, 2019. "Impact of Better Management Practices on Sustainable Cotton Production: Evidence from South Punjab," Journal of Economic Impact, Science Impact Publishers, vol. 1(3), pages 92-97.
    17. Shunxiang Wu & Stephen Devadoss & Yaochi Lu, 2003. "Estimation and decomposition of technical efficiency for sugarbeet farms," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 471-484.
    18. Brodersen, C.M. & Thiele, H., 2000. "Effizienzunterschiede in der landwirtschaftlichen Produktion, eine nicht-parametrische Analyse für Deutschland," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 36.
    19. D. L. Neff & P. Garcia & C. H. Nelson, 1993. "Technical Efficiency: A Comparison Of Production Frontier Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 479-489, September.
    20. Shafiq, Muhammad & Rehman, Tahir, 2000. "The extent of resource use inefficiencies in cotton production in Pakistan's Punjab: an application of Data Envelopment Analysis," Agricultural Economics, Blackwell, vol. 22(3), pages 321-330, April.
    21. Nehring, Richard F. & Banker, David E. & O'Donoghue, Erik J., 2003. "Have Hog Producers with Production Contracts Maintained an Economic Advantage over Independent Hog Producers in Recent Years?," 2003 Annual meeting, July 27-30, Montreal, Canada 22057, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    22. Nehring, Richard F. & Christensen, Lee A. & O'Donoghue, Erik J. & Sandretto, Carmen L., 2003. "Manure and Commercial Fertilizer Nutrients Relative to Cropland and Pasture Requirements: Is the Pollution Risk Growing on Corn/Livestock Farms?," 2003 Annual meeting, July 27-30, Montreal, Canada 21980, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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