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Technical efficiency for Colombian small crop and livestock farmers: A stochastic metafrontier approach for different production systems

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Abstract

This paper assesses the efficiency of crop and livestock production in Colombia by using a sample of 1,565 households. The study considers households located in different production systems which differ in geography, climate and soil types. These conditions affect technical efficiency and thus render analysis under the same production frontier as inadequate. For this reason, stochastic metafrontier techniques are preferred, allowing the estimation of technical efficiency within each production system and between production systems in relation to the sector as a whole. Results suggest that households in some production systems could be benefiting from better production conditions due to advantages in the availability of natural resources and climate as well as to more favorable socio-economic conditions. Additionally, we found that, in all systems, households with higher production have higher measures of technical efficiency. Thus, significant gains could be achieved in the sector through measures that contribute to improve the efficiency of households within their production systems and by policies that help reduce the technology gap in relation to the meta-frontier. These policies would bring positive impacts on the quality of life of small farmers and on the productivity of the sector.

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  • Ligia Alba Melo-Becerra & Antonio José Orozco-Gallo, 2015. "Technical efficiency for Colombian small crop and livestock farmers: A stochastic metafrontier approach for different production systems," Borradores de Economia 914, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:914
    DOI: 10.32468/be.914
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    9. Lázari, Nicoli Carolini de & Magalhães, Marcelo Marques de, 2019. "Crescimento da PTF segundo tamanho de estabelecimentos rurais na região Sudeste, de 1985 a 2006," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 57(2), January.
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    12. Ho, Phuc Trong & Hung, Pham Xuan & Tien, Nguyen Duc, 2023. "Effects of varieties and seasons on cost efficiency in rice farming: A stochastic metafrontier approach," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 13(02), January.
    13. Maria Martinez Cillero & Michael Wallace & Fiona Thorne & James Breen, 2021. "Analyzing the Impact of Subsidies on Beef Production Efficiency in Selected European Union Countries. A Stochastic Metafrontier Approach," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1903-1923, October.
    14. Khanal, Uttam & Wilson, Clevo & Shankar, Sriram & Hoang, Viet-Ngu & Lee, Boon, 2018. "Farm performance analysis: Technical efficiencies and technology gaps of Nepalese farmers in different agro-ecological regions," Land Use Policy, Elsevier, vol. 76(C), pages 645-653.
    15. Tai-Hsin Huang & Yi-Chun Lin & Kuo-Jui Huang & Yu-Wei Liao, 2022. "Comparing Cost Efficiency Between Financial and Non-financial Holding Banks and Insurers in Taiwan Under the Framework of Copula Methods and Metafrontier," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(4), pages 735-766, December.
    16. Ito, Junichi & Li, Xinyi, 2023. "Interplay between China’s grain self-sufficiency policy shifts and interregional, intertemporal productivity differences," Food Policy, Elsevier, vol. 117(C).
    17. Neubauer, Florian & Songsermsawas, Tisorn & Kámiche-Zegarra, Joanna & Bravo-Ureta, Boris E., 2022. "Technical efficiency and technological gaps correcting for selectivity bias: Insights from a value chain project in Nepal," Food Policy, Elsevier, vol. 112(C).
    18. John N. Ng’ombe, 2017. "Technical efficiency of smallholder maize production in Zambia: a stochastic meta-frontier approach," Agrekon, Taylor & Francis Journals, vol. 56(4), pages 347-365, October.
    19. Abebayehu Girma Geffersa & Frank Wogbe Agbola & Amir Mahmood, 2022. "Modelling technical efficiency and technology gap in smallholder maize sector in Ethiopia: accounting for farm heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 54(5), pages 506-521, January.
    20. Clara Inés Pardo Martínez & Alexander Cotte Poveda, 2022. "The effects of environmental performance on competitiveness and innovation: a stochastic frontier approach for Colombia," Environment Systems and Decisions, Springer, vol. 42(1), pages 51-62, March.
    21. Mora, José U. & Girón, Luis Eduardo & Lozano Ramírez, Alejandro, 2022. "Estimación de una función de producción de una plantación cañera en Colombia," Agroalimentaria Journal - Revista Agroalimentaria, Centro de Investigaciones Agroalimentarias, Facultad de Ciencias Económicas y Sociales, Universidad de los Andes, vol. 27(53), March.
    22. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & Antonio José Orozco-Gallo, 2020. "Corporate taxes and firms' performance: A meta-frontier approach," Borradores de Economia 1116, Banco de la Republica de Colombia.

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    More about this item

    Keywords

    Stochastic frontier analysis; technical efficiency; metafrontier production function; Colombia;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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