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Farm Cost Allocation Based on the Maximum Entropy Methodology - The Case of Saskatchewan Crop Farms

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  • Peeters, Ludo
  • Surry, Yves R.

Abstract

Agriculture and Agri-Food Canada (AAFC) has an ongoing research program to provide information on the effect of potential agricultural policy and technology scenarios on the environment and the economic conditions, behavior and performance in the agriculture sector. Included in this work program is a project to improve our farm level data on cost of production and farm management practices for economic and environmental analysis. As part of this effort to improve our data, this report evaluates an analytical method, called Maximum Entropy (ME), for its effectiveness in extracting detailed, enterprise level, cost of production information from whole-farm data. The ME method has been shown to be a promising and cost-effective option for obtaining these enterprise-level estimates from whole-farm data sets already available.

Suggested Citation

  • Peeters, Ludo & Surry, Yves R., 2003. "Farm Cost Allocation Based on the Maximum Entropy Methodology - The Case of Saskatchewan Crop Farms," Economic and Market Information 54461, Agriculture and Agri-Food Canada.
    • Handle: RePEc:ags:aaacem:54461
    DOI: 10.22004/ag.econ.54461
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    References listed on IDEAS

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    1. Marsh, Thomas L. & Mittelhammer, Ronald C. & Cardell, N. Scott, 1998. "A Structural-Equation Gme Estimator," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20890, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Subhash C. Ray, 1985. "Methods of Estimating the Input Coefficients for Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 660-665.
    3. P. Midmore, 1990. "Estimating Input‐Output Coefficients From Regional Farm Data—A Comment," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 108-111, January.
    4. A. Moxey & R. Tiffin, 1994. "Estimating Linear Production Coefficients From Farm Business Survey Data: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 381-385, September.
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    Cited by:

    1. Tiberti, M., 2013. "Production costs of Soft Wheat in Italy," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149898, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Bahta, Sirak Teclemariam & Berner, Anja & Offermann, Frank, 2011. "Estimation of Commodity Specific Production Costs Using German Farm Accountancy Data," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114233, European Association of Agricultural Economists.
    3. Hansen, Heiko & Surry, Yves R., 2006. "Die Schatzung Verfahrensspezifischer Faktoreinsatzmengen Fur Die Landwirtschaft In Deutschland," 46th Annual Conference, Giessen, Germany, October 4-6, 2006 14959, German Association of Agricultural Economists (GEWISOLA).
    4. Hansen, H. & Surry, Y., 2007. "Die Schätzung verfahrensspezifischer Faktoreneinsatzmengen für die Landwirtschaft in Deutschland," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    5. Kleinhanss, Werner & Offermann, Frank & Butault, Jean-Pierre & Surry, Yves R., 2011. "Cost of production estimates for wheat, milk and pigs in selected EU member states," Thünen Working Paper 118867, Johann Heinrich von Thünen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.

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