A stochastic frontier and corrected Ordinary Least Square models of determining technical efficiency of canal irrigated paddy farms in Tamil Nadu

Abstract

A comparative study between Stochastic frontier production function and corrected Ordinary Least Square (OLS) were estimated to determine technical efficiency in paddy production. Further, the study has assessed the effect of farm specific socio economic factors affecting the technical efficiency. This study was conducted in Cauvery delta zone of seven taluks about canal irrigation. The number of farmers in canal irrigated region about 109 from seven taluks is considered. The data were obtained from the cost of cultivation scheme of Tamil Nadu centre. The results of Cobb Douglas stochastic production function indicated that fertilizer, seed, pesticide and machine hours significantly influenced yield of paddy. The results also indicated that it will be highly profitable to increase the use of seed, and need to rationalize the labour use and pesticide usage. The effect of qualitative variable namely age and education of the farmer would indicate that the older farmers technical efficiency become less compared to the younger farmer, and also implying that investments on human capital take away their participation from agriculture. As a comparative study in general, COLS produced the lowest mean technical efficiency with 85 percent while the Stochastic frontier analysis produced the highest mean technical efficiency with 90 per cent.

Stochastic Meta Frontier Analysis of Smallholder Rice Farmers’ Technical Efficiency

“…SRI rice production will increase by 0.4% as a result of a one percent increase in labor. This result is in line with the findings of (Koirala, Mishra, & Mohanty, 2014) but contrary to the findings of (Vasanthi, Sivasankari, & Gitanjali, 2017).…”

“…Other inputs include water, herbicide, and insecticide. Vasanthi et al (2017) also found that an increase in pesticide cost leads to reduction in rice yields.…”

Combining aggregate production function and technical efficiency: Indonesian case study

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“…All of them are approaches to measuring technical efficiency. However, the COLS approach applies a least square estimation, which is a parametric approach, while the SFA is a maximum likelihood estimation, which is a parametric-stochastic approach, and the DEA is a linear programming estimate, which is a non-parametric and non-stochastic approach (Julien et al, 2020;Vasanthi et al, 2017).…”

Kecekapan Teknikal Pertanian Padi dan Faktor Penentu: Model Pengeluaran Sempadan Stokastik

“…Namun, kajian Pradhan dan Mukherjee (2018) terhadap 8,659 orang isi rumah petani di India menyatakan hubungan keluasan tanaman dengan pengeluaran pertanian adalah negatif. Seterusnya, Vasanthi et al (2017) menjelaskan input buruh memberi kesan negatif kepada pengeluaran padi.…”