Cotton Farmers' Technical Efficiency: Stochastic and Nonstochastic Production Function Approaches

Technical efficiency for cotton growers is examined using both stochastic (SFA) and nonstochastic (DEA) production function approaches. The empirical application uses farm-level data from four counties in west Texas. While efficiency scores for the individual farms differed between SFA and DEA, the mean efficiency scores are invariant of the method of estimation under the assumption of constant returns to scale. On average, irrigated farms are 80% and nonirrigated farms are 70% efficient. Findings show that in Texas, the irrigated farms, on average, could reduce their expenditures on other inputs by 10%, and the nonirrigated farms could reduce their expenditures on machinery and labor by 12% and 13%, respectively, while producing the same level of output.


Issue Date:
2002-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31395
Published in:
Agricultural and Resource Economics Review, Volume 31
Number 2
Page range:
211-220
Total Pages:
10




 Record created 2017-04-01, last modified 2017-06-07

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