Assessment of farm efficiency and productivity: a data analysis envelopment approach
2018
Syp, A., Institute of Soil Science and Plant Cultivation – State Research Institute, Pulawy (Poland) | Osuch, D., Institute of Agricultural and Food Economics – National Research Inst., Warsaw (Poland)
The objective of this article is to assess farm efficiency and productivity change in specialised large farms located in the region of Mazowsze and Podlasie during the years 2014 − 2016. For this, we used the non-parametric Data Envelopment Analysis (DEA) method and Malmquist index. Calculations were performed for three types of large farms classified as: field crop, pig and dairy. The study shows that mean technical efficiency of large field crop, pig and dairy farms amounted to 80, 75 and 70%, respectively. Technical inefficiency of field crop farms come mainly from scale efficiency, while of pig and dairy farms equally from pure technical and scale efficiency. It shows that inefficient management practices had an impact on farm performance. Therefore, in order to increase competitiveness of farms, an improvement of management practices is required. In the studied period the share of farms operating under increasing return was as follows: 67, 72, and 81%, respectively for field crops, pig and dairy farms. The improvement of efficiency of those farms could be achieved by increasing their size. The results indicate that 8% of field crops, 12% of dairy and 16% of large pig farms were operating under decreasing scale efficiency, which means that those farms were operating above the optimal scale. The increase in their efficiency could be achieved through size reduction. In dairy farms the average annual productivity growth of 2% was recorded. In pig farms the productivity reduction of 5.4% was observed. It was the result of a decrease in technological efficiency.
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