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Why considering technological heterogeneity is important for evaluating farm performance?

Author

Listed:
  • Swetlana Renner
  • Johannes Sauer
  • Nadja El Benni

Abstract

A split-panel latent class stochastic frontier model is applied to account for technological heterogeneity among Swiss dairy farms and to assess the potential performance improvements through technology choice and change over 11 years. Three technology classes with substantially different productivity levels are identified considering the unobserved and observed farm characteristics. Technologies seem on average well adapted to local natural production conditions with low potential for efficiency and productivity increases. Few farms changed technology over time and either an intensification or extensification strategy was observed. Policymakers must be aware of the interlinkages between technology choices and the economic situation of farms.

Suggested Citation

  • Swetlana Renner & Johannes Sauer & Nadja El Benni, 2021. "Why considering technological heterogeneity is important for evaluating farm performance?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 415-445.
    • Handle: RePEc:oup:erevae:v:48:y:2021:i:2:p:415-445.
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    File URL: http://hdl.handle.net/10.1093/erae/jbab003
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    Citations

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    Cited by:

    1. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 253-265.
    2. Laure Latruffe & Andreas Niedermayr & Yann Desjeux & K Herve Dakpo & Kassoum Ayouba & Lena Schaller & Jochen Kantelhardt & Yan Jin & Kevin Kilcline & Mary Ryan & Cathal O’Donoghue, 2023. "Identifying and assessing intensive and extensive technologies in European dairy farming," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(4), pages 1482-1519.
    3. Skevas, Ioannis, 2024. "Accounting for technology heterogeneity in the measurement of persistent and transient inefficiency," Economic Modelling, Elsevier, vol. 137(C).
    4. Leonardo Cei & Edi Defrancesco & Paola Gatto & Francesco Pagliacci, 2023. "Pay more for me, I’m from the mountains! The role of the EU Mountain Product term and other credence attributes in consumers’ valuation of lamb meat," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-21, December.
    5. Vida Dabkienė & Tomas Baležentis & Dalia Štreimikienė, 2022. "Reconciling the micro‐ and macro‐perspective in agricultural energy efficiency analysis for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 149-164, February.
    6. Letort, Elodie & Dupraz, P, 2023. "Animal feed as a lever to reduce methane emissions: a micro-econometric approach applied to French dairy farms," Working Papers 338908, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

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