Measuring the technical efficiency and determinants of efficiency of rice (Oryza sativa) farms in marmara region, Turkey

Abstract

The objective of this study was to evaluate the technical and scale efficiency of sample rice (Oryza sativa) farms and subsequently identify determinants of technical inefficiency in the Balikesir and Edirne provinces of Turkey. An input oriented data envelopment analysis (DEA) was used to estimate technical efficiency scores. Additionally, Tobit regression was used to explain the variation in the efficiency scores related to farm-specific factors. The data used in this study were based on a direct interview survey of 70 randomly selected rice farm households in the 2007 production year. Study results revealed that overall the technical efficiency score of sample rice farms was 0.92 on average and ranged from 0.75 to 1.00. Sample rice farms could reduce their inputs by c. 8% and still produce the same level of rice output. Calculated efficiency scores were subsequently regressed on explanatory variables using a Tobit analysis, to help in identifying inefficiency related factors. In this study, five explanatory variables were identified as being related to efficiency. The Tobit regression estimates showed that factors such as number of plots, farmer's age, and off-farm income negatively influenced technical efficiency, whereas farm size and membership of a cooperative showed a positive relationship with efficiency.