Estimation and decomposition of technical efficiency for sugarbeet farms

Shunxiang Wu, Stephen Devadoss, Yaochi Lu

Research output: Contribution to journalArticlepeer-review

16 Scopus citations

Abstract

This study computes technical efficiency for Idaho sugarbeet farms and decomposes it into pure technical efficiency, scale efficiency, and congestion efficiency using non-parametric procedures. The results indicate that the average efficiency is 0.88 with 45% of the farms in the sample exhibiting full efficiency. Improper scale operation and input overutilization are the major sources of inefficiency for remaining farms. Technical efficiency is independent of farm size. A Tobit model was used to examine the impacts of variables such as farm size, specialization, tenancy position, hired labour, location, and managerial ability on efficiency. Inefficiency in sugarbeet production results in a shortfall of potential revenues not only for producers, but also for landlords and processors.

Original languageEnglish
Pages (from-to)471-484
Number of pages14
JournalApplied Economics
Volume35
Issue number4
DOIs
StatePublished - Mar 4 2003

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