Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-25T14:30:32.844Z Has data issue: false hasContentIssue false
  • English
  • Français

Measurement of Technical, Allocative, Economic, and Scale Efficiency of Rice Production in Arkansas Using Data Envelopment Analysis

Published online by Cambridge University Press:  26 January 2015

K. Bradley Watkins ,
Tatjana Hristovska ,
Ralph Mazzanti ,
Charles E. Wilson Jr  and
Lance Schmidt
K. Bradley Watkins
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Tatjana Hristovska
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Ralph Mazzanti
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Charles E. Wilson Jr
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Lance Schmidt
Affiliation:
University of Arkansas Newport Extension Center, Newport, Arkansas
Get access Rights & Permissions [Opens in a new window]

Abstract

Data envelopment analysis is used to calculate technical, allocative, economic, and scale efficiencies for fields enrolled in the University of Arkansas Rice Research Verification Program. The results reveal most fields have high technical and scale efficiencies, implying inputs are used in minimum levels necessary to achieve given output levels and fields are close to optimal in size. However, most fields exhibit allocative and economic inefficiencies and do not use inputs in the right combinations necessary to achieve cost minimization. Tobit analysis indicated allocative and economic efficiencies could be improved with better variety selection and better irrigation management.

Keywords

costsdata envelopment analysisefficiencyinputsproductionriceC61D24Q12
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 1 , February 2014 , pp. 89 - 106
Copyright
Copyright © Southern Agricultural Economics Association 2014

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

Abdulai, A., and Huffman, W.. “Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana”. Economic Development and Cultural Change 43(2000):503–520.CrossRefGoogle Scholar
Audibert, M. “Technical Inefficiency Effects among Paddy Farmers in the Villages of the ‘Office du Niger’, Mali, West Africa”. Journal of Productivity Analysis 8(1997): 379–394.CrossRefGoogle Scholar
Bäckman, S., Islam, K.M. Zahidul, and Sumelius, J.. “Determinants of Technical Efficiency of Rice Farms in North–Central and North–Western Regions of Bangladesh”. Journal of Developing Areas 45(2011):73–94.CrossRefGoogle Scholar
Banker, R.D., Charnes, A., and Cooper, W.W.. “Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis”. Management Science 30(1984): 1078–1092.CrossRefGoogle Scholar
Battese, G.E., and Coelli, T.J.. “Frontier Production Functions, Technical Efficiency and Panel Data: With Application to Paddy Farmers in India”. Journal of Productivity Analysis 3(1992): 153–169.CrossRefGoogle Scholar
Bràzdik, F. Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms. Charles University, Center for Economic Research and Graduate Education, Academy of Sciences of the Czech Republic Economics Institute, Working Paper Series 286, January 2006.CrossRefGoogle Scholar
Charnes, A., Cooper, W.W., and Rhodes, E.. “Measuring the Efficiency of Decision Making Units”. European Journal of Operational Research 2(1978):429–144.CrossRefGoogle Scholar
Chauhan, N.S., Mohapatra, K.J.P.K.J., and Pandey, K.P.. “Improving Energy Productivity in Paddy Production through Benchmarking—An Application of Data Envelopment Analysis”. Energy Conservation and Management 47(2006): 1063–1085.CrossRefGoogle Scholar
Chavas, J.-P., and Aliber, M.. “An Analysis of Economic Efficiency in Agriculture: A Non-parametric Approach”. Journal of Agricultural and Resource Economics 18(1993): 1–16.Google Scholar
Childs, N., and Livezey, J.. Rice Backgrounder. Washington, DC: U.S. Department of Agriculture, Economic Research Service, RCS-2006-01, December, 2006. Internet site: www.ers.usda.gov/media/866674/rcs200601_002.pdf (Accessed July 8, 2013).Google Scholar
Coelli, T., Rahman, S., and Thirtle, C.. “Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non-parametric Approach”. Journal of Agricultural Economics 53(2002):607–626.CrossRefGoogle Scholar
Coelli, T.J. “Recent Developments in Frontier Modeling and Efficiency Measurement”. Australian Journal of Agricultural Economics 39(1995):219–215.CrossRefGoogle Scholar
Dawson, P.J., Lingard, J., and Woodford, C.H.. “A Generalized Measure of Farm-Specific Technical Efficiency”. American Journal of Agricultural Economics 73(1991): 1098–1104.CrossRefGoogle Scholar
Dhungana, B.R., Nuthall, P.L., and Nartea, G.V. “Measuring the Economic Inefficiency of Nepalese Rice Farms Using Data Envelopment Analysis”. The Australian Journal of Agricultural and Resource Economics 48(2004):347–369.CrossRefGoogle Scholar
Farrell, M.J. “The Measurement of Production Efficiency”. Journal of the Royal Statistical Society. Series A (General) 120(1957):253–290.CrossRefGoogle Scholar
Fernandez-Cornejo, J. “Nonradial Technical Efficiency and Chemical Input Use in Agriculture”. Agricultural and Resource Economics Review 23(1994): 11–21.CrossRefGoogle Scholar
Flanders, A., Dunn, C., Stiles, S., Grimes, C., Kelley, S., Lawson, K., Mazzanti, R., McClelland, B., and Schmidt, L.. 2013 Crop Enterprise Budgets for Arkansas Field Crops Planted in 2013. University of Arkansas Division of Agriculture, Research and Extension, AG-1283, December 2012. Internet site: www.uaex.edu/depts/ag_economics/budgets/2013/Budgets2013.pdf (Accessed March 19, 2013).Google Scholar
Fletschner, D.K., and Zepeda, L.. “Efficiency of Small Landholders in Eastern Paraguay”. Journal of Agricultural and Resource Economics 27(2002):554–572.Google Scholar
Huang, M., Huang, C.J., and Fu, T.. “Cultivation Arrangements and the Cost Efficiency of Rice Farming in Taiwan”. Journal of Productivity Analysis 18(2002):223–239.CrossRefGoogle Scholar
Khan, A., Huda, F.A., and Alam, A.. “Farm Household Technical Efficiency: A Study on Rice Producers in Selected Areas of Jamalpur District in Bangladesh”. European Journal of Soil Science 14(2010):262–271.Google Scholar
Kiatpathomchai, S. Assessing Economic and Environmental Efficiency of Rice Production Systems in Southern Thailand. PhD dissertation, Agricultural Sciences, Nutritional Sciences and Environmental Management, Justus-Liebig University, Giessen, Germany, September 2008.Google Scholar
Krasachat, W. “Technical Efficiencies of Rice Farms in Thailand: A Non-parametric Approach”. Journal of American Academy of Business, Cambridge 4(2004):64–69.Google Scholar
Lansink, A.O., Pietola, K., and Bäckman, S.. “Efficiency and Productivity of Conventional and Organic Farms in Finland 1994–1997”. European Review of Agriculture Economics 29(2002): 51–65.CrossRefGoogle Scholar
Lindo Systems. What's Best! Version 9.0 User's Manual. Chicago, IL: LINDO Systems, 2007.Google Scholar
Maddala, G.S. Limited-Dependent and Qualitative Variables in Econometrics. Cambridge, UK: Cambridge University Press, 1983.CrossRefGoogle Scholar
Mazzanti, R., Runsick, S.K., Wilson, C.E. Jr, Watkins, K.B., and Hristovska, T.. “2011 Rice Research Verification Program”. B.R. Wells Rice Research Studies 2011. Norman, R.J. and Moldenhauer, K.A.K., eds. Fayetteville, AK: Arkansas Agricultural Experiment Station, Research Series No. 600, 2012, pp. 15–34.Google Scholar
Nalley, L.L., Barkley, A., Watkins, B., and Hignight, J.. “Enhancing Farm Profitability through Portfolio Analysis: The Case of Spatial Rice Variety Selection”. Journal of Agricultural and Applied Economics 41(2009):641–652.CrossRefGoogle Scholar
Nhut, Q.M. Allocation and Cost Efficiency Analysis of Selected Farming Patterns within and Outside Boundary Irrigation Systems in Tri Ton and Cho Moi District, An Giang Provience (Mekong River Delta, Vietnam). Centre for ASEAN Studies, CAS Discussion paper No. 54, October 2007.Google Scholar
Olesen, O.B., Petersen, N.C., and Lovell, C.A.K.. “Editor's Introduction”. Journal of Productivity Analysis 7(1996):87–98.CrossRefGoogle Scholar
Piot-Lepetit, I., Vermersch, D., and Weaver, R.D.. “Agriculture's Environmental Externalities: DEA Evidence for French Agriculture”. Applied Economics 29(1997):331–338.CrossRefGoogle Scholar
Rahman, S., Wiboonpongse, A., Sriboonchitta, S., and Chaovanapoonphol, Y.. “Production Efficiency of Jasmine Rice Producers in Northern and North-Eastern Thailand”. Journal of Agricultural Economics 60(2009):419–435.CrossRefGoogle Scholar
SAS Institute. SAS/STAT 9.1 User's Guide. Cary, NC: SAS Institute, 2004.Google Scholar
Sharma, K.R., Leung, P., and Zaleski, H.M.. “Production Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis”. Journal of Productivity Analysis 8(1997):447–459.CrossRefGoogle Scholar
Sharma, K.R., Leung, P., and Zaleski, H.M.. “Technical, Allocative and Economic Efficiencies in Swine Production in Hawaii: A Comparison of Parametric and Nonparametric Approaches”. Agricultural Economics 20(1999): 23–35.CrossRefGoogle Scholar
Tadesse, B., and Krishnamoorthy, S.. “Technical Efficiency in Paddy Farms of Tamil Nadu: An Analysis Based on Farm Size and Ecological Zone”. Agricultural Economics 16(1997): 175–192.Google Scholar
Theodoridis, A.M., and Anwar, M.. “A Comparison of DEA and SFA Methods: A Case Study of Farm Households in Bangladesh”. Journal of Developing Areas 45(2011):95–110.CrossRefGoogle Scholar
Theodoridis, A.M., and Psychoudakis, A.. “Efficiency Measurement in Greek Dairy Farms: Stochastic Frontier vs. Data Envelopment Analysis”. International Journal of Economic Sciences and Applied Research 1(2008):53–67.Google Scholar
U.S. Department of Agriculture, Economic Research Service. 2013. Rice Yearbook 2013. Washington, DC: U.S. Department of Agriculture, Economic Research Service. Internet site: www.ers.usda.gov/data-products/rice-yearbook-2013.aspx#.UdrPFKzCZXg (Accessed July 8, 2013).Google Scholar
Vories, E.D., Tacker, P.L., and Hogan, R.. “Multiple Inlet Approach to Reduce Water Requirements for Rice Production”. Applied Engineering in Agriculture 21(2005):611–616.CrossRefGoogle Scholar
Wadud, A. “Technical, Allocative, and Economic Efficiency of Farms in Bangladesh: A Stochastic Frontier and DEA Approach”. Journal of Developing Areas 37(2003): 109–126.CrossRefGoogle Scholar
Wadud, A., and White, B.. “Farm Household Efficiency in Bangladesh: A Comparison of Stochastic Frontier and DEA Methods”. Applied Economics 32(2000): 1665–1673.CrossRefGoogle Scholar
Wilson, C.E. Jr, Runsick, S.K., and Mazzanti, R.. “Trends in Arkansas Rice Production”. B.R. Wells Rice Research Studies 2008. Norman, R.J., Meullenet, J.-F., and Moldenhauer, K.A.K., eds. Fayetteville, AK: Arkansas Agricultural Experiment Station, Research Series No. 571, 2009, pp. 13–23.Google Scholar
Wu, S., and Prato, T.. “Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri”. Journal of Agricultural and Applied Economics 38(2006):539–553.CrossRefGoogle Scholar
Xu, X., and Jeffrey, S.R.. “Efficiency and Technical Progress in Traditional and Modern Agriculture: Evidence from Rice Production in China”. Agricultural Economics 18(1998): 157–165.CrossRefGoogle Scholar
Zahidul Islam, K.M., Bäckman, S., and Sumelius, J.. “Technical, Economic, and Allocative Efficiency of Microfinance Borrowers and Non-borrowers: Evidence from Peasant Farming in Bangladesh”. European Journal of Soil Science 18(2011):361–377.Google Scholar