Evaluating the Influence of Soil and Socioeconomic Factors on Agricultural Efficiency

Abstract

<p><strong>Background: </strong>Given the importance of the agricultural activity for the economic development of the state of Rio de Janeiro, Brazil, in this paper we assess the effect of the environmental parameters related to soils and socioeconomic factors on the performance of the municipalities. <strong>Objective: </strong>To identify factors that influence on agricultural production performance, as well as the directions of such influences (positive or negative). <strong>Methodology: </strong>A two-stage<strong> </strong>Data Envelopment Analysis (DEA) was chosen for this analysis. The performance scores are computed considering land, labor, and capital (or technology) as inputs, and the value of crops and of livestock production as outputs. <strong>Results: </strong>The average efficiency was 0.5509 and 12 municipalities out of the 89 assessed were 100% efficient. A<strong> </strong>high level of susceptibility to erosion significantly and negatively influences the efficiency scores. The suitability of land for agriculture and for livestock are positively associated with performance. The presence of family-based farmers favors the agricultural performance of the assessed municipalities. <strong>Implications: </strong>These results may support public policies related to land use and soil governance. <strong>Conclusions:</strong> The proposed two-stage DEA approach was useful to assess the influence of factors related to soils and socioeconomic indicators on the agricultural performance of the municipalities in the state of Rio de Janeiro. </p>