Analysis of production efficiency of beef cow/calf farms in Alberta

Samarajeewa, S.R.; Hailu, Getu; Jeffrey, Scott R.; Bredahl, Maury E.

doi:10.1080/00036846.2010.507173

Cited by 27 publications

(30 citation statements)

References 23 publications

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“…The average technical efficiency scores are 85.88% for cow‐calf, 85.10% for background, and 91.92% for feedlot operations. Samarajeewa et al () found an average technical efficiency of 83.3% for a sample of Alberta cow‐calf operations. Figure shows the distribution of technical efficiency for each farm type.…”

Section: Resultsmentioning

confidence: 99%

Do Farm Support Programs Reward Production Inefficiency?

Hailu

Poon

2017

Canadian J Agri Economics

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Agricultural policy frameworks such as Growing Forward are intended to enhance the productivity and competitiveness of the Canadian agricultural sector and to stabilize farm income. This paper examines the relationship between production efficiency and government program payments. First, we find evidence of heterogeneity in production efficiency across farms. Second, we find a negative correlation between production efficiency and the share and level of program payments. The result of this study underscores the importance of understanding the link between technical inefficiency and government payments. Les cadres stratégiques agricoles comme Cultivons l'avenir existent pour favoriser la productivité et la compétitivité du secteur agricole canadien et pour stabiliser les revenus des exploitations agricoles. Cet article examine la relation entre l'efficience de la production et les programmes gouvernementaux de paiements. En premier lieu, nous avons trouvé des preuves d'hétérogénéité dans l'efficience de la production dans toutes les exploitations agricoles. Ensuite, nous avons identifié une corrélation négative entre la production efficiente,et la part et niveau des programmes de paiements. Le résultat de cette étude met en relief l'importance de comprendre le lien entre les inefficiences techniques et les paiements gouvernementaux.

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Section: Resultsmentioning

confidence: 99%

Do Farm Support Programs Reward Production Inefficiency?

Hailu

Poon

2017

Canadian J Agri Economics

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“…Other studies showing evidence of economies of size in cow-calf production include Langemeier et al (1996), Short (2001), and Ramsey et al (2005). However, as pointed out by Samarajeewa et al (2012), herd size is by no means the only factor impacting production efficiency (as opposed to asset efficiency), 312 AFR 74,3…”

Section: Introductionmentioning

confidence: 91%

“…As such, cow-calf farms vary widely in economic and financial viability. While studies have examined cow-calf producer technology adoption patterns (Ward et al, 2008;Kim et al, 2008), economic efficiency (Featherstone et al, 1997;Samarajeewa et al, 2012), goal structure (Basarir and Gillespie, 2006;Gillespie and Mishra, 2011), and factors affecting profitability (Miller et al, 2001;Ramsey et al, 2005) mostly via regional analyses, few studies (McBride and Mathews, 2011) have focussed on the drivers of economic and financial viability of US cow-calf production on a national basis. Cow-calf farms have historically realized returns that have often either barely or not covered costs (Basarir and Gillespie, 2006), complicated further by systematic increases and decreases in cattle prices over time as illustrated by the roughly ten-year cattle cycle (Tomek and Robinson, 1981, p. 179).…”

Section: Introductionmentioning

confidence: 99%

What is driving economic and financial success of US cow-calf operations?

Nehring

Gillespie

Hallahan

et al. 2014

Agricultural Finance Review

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Purpose -The purpose of this paper is to determine the drivers of economic financial success of US cow-calf operations. Design/methodology/approach -This research uses a system of equations (DuPont analysis) in conjunction with 2008 farm-level data from the US Department of Agriculture's Agricultural Resource Management Survey to evaluate the factors driving cow-calf profitability, namely net profit margins, asset turnover ratio, and asset-to-equity ratio. Findings -The study finds that the main drivers of return on equity are region, number of harvested acres on the farm, diversification of the farm, operator off-farm work, spousal off-farm work, and adoption of technologies. Of these factors, those for which producers can make short-term adjustments include off-farm work decisions and adoption of technologies. Longer-term adjustments can be made for farm diversification. Originality/value -To the authors' knowledge, no existing research has used farm-level data across US production regions to examine the factors affecting returns to equity of US cow-calf operations. These research results may be used to identify strategies producers can use to improve their farm's economic viability, areas where extension services can assist farmers in making better financial decisions and economic factors that are likely to lead to structural changes in the beef industry.

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“…The application of benchmarking, thus, becomes especially important when fostering sustainable agricultural development. Furthermore, productive efficiency gains might result into lower costs as well as greater profit margins for the producer and better prices for the participants in the agricultural supply chain (Samarajeewa et al 2012). Nauges et al (2011) presented the following factors stressing the need for research into agricultural efficiency.…”

Section: Introductionmentioning

confidence: 99%

Stochastic Production Frontier for the Lithuanian Family Farms

Baležentis

2016

Journal of Business Economics and Management

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Abstract. The research follows neo-classical methodology to analyse the trends of the agricultural efficiency. The paper fits the stochastic production frontier to the micro data describing the performance of the Lithuanian family farms during [2004][2005][2006][2007][2008][2009] in order to define the current trends of efficiency and productivity in the sector. Indeed, this is the first application of stochastic frontiers to gauge the performance of Lithuanian family farms. The technical efficiency of the Lithuanian family farms fluctuated around 80%. The analysis confirmed that the livestock farms were peculiar with higher mean technical efficiency if compared to that of mixed or crop farms. The estimated partial output elasticities imply that the intermediate consumption was the most productive factor, whereas assets were four to six times less productive depending on the farming type. The land factor was peculiar with the lowest partial output elasticities. The research contributes to the wider discussion on the patterns of efficiency and productivity in a transition European Union Member States following the accession.

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Analysis of production efficiency of beef cow/calf farms in Alberta

Cited by 27 publications

References 23 publications

Do Farm Support Programs Reward Production Inefficiency?

Do Farm Support Programs Reward Production Inefficiency?

What is driving economic and financial success of US cow-calf operations?

Stochastic Production Frontier for the Lithuanian Family Farms

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