NDLI: Effects of scale, intensity and farm structure on the income efficiency of Irish beef farms

Content Provider	AgEcon Search
Author	Finneran, E. Crosson, p.
Abstract	Data envelopment analysis (DEA) was employed to develop a model of income and scale efficiency for Irish beef farms. The objective was to identify and quantify management, farm structural and intensity indicators of efficiency for over 400 representative farms over two production systems and two years. Bootstrapping techniques were employed to measure and correct efficiency scores for sampling bias. Less than 10% of the sample exhibited constant or increasing returns to scale. The remaining farms exhibited decreasing returns to scale meaning that they were larger than optimal scale. Greater income efficiency was associated with lower levels of concentrate feeding and lower overhead costs per livestock unit (LU). Fragmentation, paid labour and capital investment were significantly negatively associated with income efficiency. There was a positive relationship between market gross output per LU and income efficiency. Negative market net margins tended to be subsidised by greater off-farm income on smaller (more scale efficient) farms and by greater direct payments on larger (more scale inefficient) farms. Consequently, prospects for increasing beef output via scale expansion are negative in an external environment of declining subsidies and reduced off-farm employment in rural areas. Increased output from Irish beef farms must therefore come primarily from farm system structural changes rather than scale changes, otherwise farm income efficiency will decline.
Related Links	https://ageconsearch.umn.edu/record/175077/files/226_Finneran.pdf
Ending Page	237
Page Count	12
Starting Page	226
File Format	PDF
ISSN	20473710
DOI	10.22004/ag.econ.175077
Journal	International Journal of Agricultural Management
Issue Number	4
Volume Number	02
Language	English
Publisher	International Farm Management Association (IFMA)
Publisher Date	2013-01-01
Access Restriction	Open
Subject Keyword	Applied Economics Agricultural Economics Agri-economic Open Access Database Research in Applied Economics Research in Agricultural Economics Higher Study On Agricultural Economics Higher Study On Applied Economics Agricultural Research Documents Agrarian Economy & Research Higher Study Agri-economics Research in Economics Agri-economic Open Access Repository Statistics in Agricultural Economics Suckler Beef Production Efficiency Dea Scale Efficiency Bootstrapping Whole-farm Comparative Analysis Livestock Production/industries Production Economics
Content Type	Text
Resource Type	Article
Subject	Economics, Econometrics and Finance

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