Agricultural Policies and Technical Efficiency of Wheat Production in Kazakhstan and Russia: Evidence from a Stochastic Frontier Approach

Abstract

We utilize a unique primary data set of farms in Russia and Kazakhstan to investigate the link between policy reforms and technical efficiency. These countries have heavily subsidized their domestic agricultural production over the last decade, with a total of around USD 76 billion USD and USD 11.5 billion USD in government funding directed towards the agricultural sectors in Russia and Kazakhstan, respectively. Results of a stochastic frontier analysis make evident that variable inputs, such as fertilizer, have a relatively large influence on wheat production compared to land. Nearly every fifth farm has a technical efficiency level lower than 60%, suggesting significant unrealized production potential. While our analysis shows a negative relation between subsidies and efficiency, other factors, such as farmer’s education, cooperative and agroholding membership, and participation in insurance programs, are positively related to farm efficiency. The results imply that the governments and policymakers could mobilize the unutilized wheat production potential by improving the farmer education system, fostering cooperation among farms, and developing functioning farm insurance schemes.

Unravelling the bidirectional impact of Chinese agricultural subsidy policy on agricultural efficiency and farmers' income through panel data analysis

“…Studies that have examined the influence of agricultural policy on agricultural efficiency and farmers' income have indicated a positive impact of agricultural policy (El Benni et al 2012). These studies have predominantly utilised econometric models (Johnson et al 1948;Bojnec and Fertő 2022), envelopment analysis (Amores and Contreras 2009;Bai et al 2022), and stochastic frontier analysis (Tleubayev et al 2022;Bernini and Galli 2024), among other approaches. However, these studies have overlooked the impact variations across the types and levels of agricultural policies on diverse regions and types of farmers, in addition to the interactions between agricultural policy and other factors.…”

The impact of African agriculture production on bank stability through bank risk and profit

“…An association between agricultural production and women's economies is positively correlated in rural areas of developing countries where marginalized women made self-helping groups to finance their crops (Saha & Kasi, 2022). One study showed that the allocation of a loan-loss reserve for insurance companies insuring against agro-climatic change factors improved agricultural production performance due to the effectiveness of relatively low rates of interest (Tleubayev et al, 2022). Access to agricultural credit volume showed that banks provided more loans than microfinance institutions according to the total number of large loans issued for agriculture in Kosovo (Shkodra & Shkodra, 2018).…”

“…2) The second group is related to credit access and technical efficiency to boost production (Missiame et al, 2021;Rezitis et al, 2003;Shkodra & Shkodra, 2018;Tleubayev et al, 2022).…”

“…4) In contrast, the fourth category stressed on technologies update and new farming methods to increase the production output in terms of quality and quantity (Gehrke, 2019;He et al, 2022;Kloeppinger-Todd & Sharma, 2010;Kumar et al, 2017;Saqib et al, 2018;Yanbykh et al, 2019). 5)While the fifth group stressed the insurance scheme/plan to secure credit and crops from natural risks (Kumar et al, 2017;Shkodra & Shkodra, 2018;Tleubayev et al, 2022).…”

Institutional trends of Russian agriculture as problems and advantages of development

“…[9] also identified the factors influencing the change in food prices in five countries of the world for 2000-2020: the dominant influence of oil prices, a less significant change in the exchange rate. Tleubayev A., Bobojonov I. and Götz L. [10] believe that to increase crop production productivity, instead of state subsidizing farming, other institutional tools should be used: training of farmers, production and marketing cooperation, membership in agricultural holdings, return to cultivation of abandoned land, crop insurance. Jianhua Ye, et al [11] argue that the state should invest more in social development, ecology.…”