Hostname: page-component-745bb68f8f-g4j75 Total loading time: 0 Render date: 2025-01-12T09:11:03.538Z Has data issue: false hasContentIssue false
  • English
  • Français

Measuring X-Efficiency and Scale Efficiency for a Sample of Agricultural Cooperatives

Published online by Cambridge University Press:  15 September 2016

Chatura B. Ariyaratne ,
Allen M. Featherstone ,
Michael R. Langemeier  and
David G. Barton
Chatura B. Ariyaratne
Affiliation:
Department of Agricultural Economics at Kansas State University
Allen M. Featherstone
Affiliation:
Department of Agricultural Economics at Kansas State University
Michael R. Langemeier
Affiliation:
Department of Agricultural Economics at Kansas State University
David G. Barton
Affiliation:
Department of Agricultural Economics at Kansas State University
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper examines the efficiency of a sample of Great Plains grain marketing and farm supply cooperatives during 1988 to 1992. In general, larger cooperatives were more X-efficient and scale efficient. Labor tended to be under-utilized and capital over-utilized. Petroleum product sales and fertilizer sales were negatively related to overall efficiency. Sales of goods other than grain, fertilizer, agricultural chemicals, petroleum products, and feed was positively related to overall efficiency. Overall efficiency was significantly correlated with the rate of return to assets.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 29 , Issue 2 , October 2000 , pp. 198 - 207
Copyright
Copyright © 2000 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akridge, J.T., and Hertel, T.W. 1992. “Cooperative and Investor Oriented Firm Efficiency: A Multi-Product Analysis.” Journal of Agricultural Cooperation 7: 1–14.Google Scholar
Ariyaratne, C.B. 1997. An Analysis of Efficiency and Productivity of Midwestern Agricultural Cooperatives. M.S. Thesis, Department of Agricultural Economics, Manhattan, KS, May.Google Scholar
Berger, A.N. 1993. ‘Distribution Free’ Estimates of Efficiency in the U.S. Banking Industry and Tests of the Standard Distributional Assumptions.” Journal of Productivity Analysis 4: 261–292. September.Google Scholar
Färe, R., Grosskopf, S., and Lovell, C.A.K. 1985. The Measurement of Efficiency of Production. Boston: Kluwer-Nijhoff.Google Scholar
Featherstone, A.M. and Al-Kheraiji, A.A. 1995. “Debt and Input Misallocation of Agricultural Supply and Marketing Cooperatives.” Applied Economics 27: 871–878.Google Scholar
Featherstone, A.M. and Rahman, M.H. 1996. “Nonparametric Analysis of the Optimizing Behavior of Midwestern Cooperatives.” Review of Agricultural Economics. 18: 265–273. May.Google Scholar
Griffiths, W.E., Hill, R.C., and Judge, G.G. 1993. Learning and Practicing Econometrics, John Wiley & Sons, Inc., USA.Google Scholar
Kraenzle, C.A., Richardson, R.M., Adams, C.C., DeVille, K.C., and Penn, J.E. 1999. Farmer Cooperative Statistics 1998. Washington, D.C.: USDA, RB/CS, Service Report 57, November.Google Scholar
Leibenstein, H. 1966. “Allocative Efficiency vs. ‘X-Efficiency’.” American Economic Review, 56: 392–415. June.Google Scholar
Meador, J.W., Ryan, H.E. Jr., and Schellhorn, C.D. 1997. “Product Focus versus Diversification: Estimates of X-Efficiency for the U.S. Life Insurance Industry.” Paper presented at the Wharton Financial Institutions Center's conference on The Performance of Financial Institutions, May 8-10. Paper #97-16.Google Scholar
Schroeder, T.C. 1992. “Economies of Scale and Scope for Agricultural Supply and Marketing Cooperatives.” Review of Agricultural Economics 14: 93–103.Google Scholar
Thraen, C.S., Hahn, D.E., and Roof, J.B. 1987. “Processing Costs, Labor, Efficiency, and Economies of size in cooperatively Owned Fluid Milk Plants.” Journal of Agricultural Cooperation 374–390.Google Scholar
United States Department of Agriculture. 1994. Prices Received by Farmers: Historic Data Series and Indexes, June.Google Scholar
United States Department of Labor. Various issues. Producer Price Index-Commodities. Bureau of Labor Statistics Data.Google Scholar