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Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act

Published online by Cambridge University Press:  28 April 2015

Denis A. Nadolnyak ,
Stanley M. Fletcher  and
Valentina M. Hartarska
Denis A. Nadolnyak
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Griffin, GA
Stanley M. Fletcher
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Griffin, GA
Valentina M. Hartarska
Affiliation:
Department of Agricultural Economics and Rural Sociology, Auburn University, Auburn, AL
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Abstract

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota's transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator's education and age, were also important for efficiency.

Keywords

2002 Farm Actpeanut productionstochastic cost frontier analysissupply management policiesQ18D61Q15Q12
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 1 , April 2006 , pp. 213 - 224
Copyright
Copyright © Southern Agricultural Economics Association 2006

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