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Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers

Published online by Cambridge University Press:  28 April 2015

Christos J. Pantzios ,
Stelios Rozakis  and
Vangelis Tzouvelekas
Christos J. Pantzios
Affiliation:
Department of Economics, University of Patras, Greece. He tragically passed away while the paper was in the final stage of being written. The paper is dedicated to his memory.
Stelios Rozakis
Affiliation:
Department of Agricultural Economics and Rural Development, Agricultural University of Athens
Vangelis Tzouvelekas
Affiliation:
Department of Economics, University of Crete, Greece
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Abstract

The present paper examines the importance that efficient resource use may have for cotton growers under the current EU policy regime. To that end, input-oriented technical and scale efficiency scores for a sample of 172 cotton-growing farms are empirically quantified. The results suggest that cotton farms in the sample are not efficient mainly due to the nature of the policy regime governing the sector throughout EU. By becoming efficient, the co-responsibility levy will be reduced by 18.3% and farms may increase their profits by 50.1% on the average.

Keywords

co-responsibility levycotton farmsgoal programmingGreecescale and technical efficiencystochastic frontier modelD24Q12Q16C61
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 3 , December 2006 , pp. 555 - 574
Copyright
Copyright © Southern Agricultural Economics Association 2006

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