Production Efficiency of Family Farms and Business Farms in the Brazilian Regions

Imori, Denise; Guilhoto, Joaquim José Martins; Postali, Fernando Antônio Slaibe

doi:10.2139/ssrn.2402267

Cited by 2 publications

(3 citation statements)

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“…They considered rainfall anomalies (i.e., rainfall above or below the national average) as one of the main determinants of technical inefficiency. In Brazil, Imori et al (2012) found statistically significant impacts of temperature and precipitation on the estimated technical efficiency.…”

Section: Efficiency Analysismentioning

confidence: 92%

“…Another relevant variable that influences the efficiency of farmers is farm size(Ali et al 1994, Ali & Flinn 1989, Wang et al 1996, Xu & Jeffrey 1998, Tzouvelekas et al 2001 Barrett (1996). points to an inverse relation of size and efficiency, as small farmers might use an exceptional amount of work to compensate the failures of product and credit markets that they observe.12Helfand (2003) andImori et al (2012) posit that they can lead to non-optimal choices by farmers.13Ahmed & Hossain (1990) say that rural infrastructure is the key limiting determinant of efficiency. Other studies have identified this influence by calculating the impact of the distance to markets and extension services, agricultural infrastructure, and regional differences(Rahman 2005, Tzouvelekas et al 2001) on inefficiency.…”

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confidence: 99%

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Climate and weather impacts on agriculture: the case of Brazil

Pereda

Alves

2018

Econ. Aplic.

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The world’s population will rise exponentially in the coming decades, increasing the demand for food and challenging the agricultural sector to ensure food security. Due to the importance of climate conditions for agriculture, this article analyzed two different hypotheses regarding climate impacts on agricultural markets in Brazil. First, farmers only observe the average climate conditions of their region when deciding the type and amount of crop or animal to grow or raise. Second, weather diversions from normal climate conditions cause farmers to deviate from optimal profits. Neither hypothesis was rejected by the data. The 2006 estimated loss from rainfall anomalies was 12.8 billion dollars (in 2014 values).

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Section: Efficiency Analysismentioning

confidence: 92%

mentioning

confidence: 99%

Climate and weather impacts on agriculture: the case of Brazil

Pereda

Alves

2018

Econ. Aplic.

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“…In-depth research on the efficiency of family farms has been conducted in the theoretical community. For example, Imori et al, used stochastic production frontier and inefficiency effect models to compare and analyze the efficiency of family farms and commercial farms in Brazil and found that the efficiency of family farms was lower than that of commercial farms [8]. Madau compared the efficiencies measured by the SFA model and the DEA model, and the results demonstrated that the technical efficiency estimated by the SFA model was basically at the same level as that estimated by the DEA model; however, the scale efficiency measured by the SFA model was higher [9].…”

Section: Literature Reviewmentioning

confidence: 99%

A Configurational Analysis of Family Farm Management Efficiency: Evidence from China

Wang

Wan

et al. 2022

Sustainability

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Family farms are the “most-desirable”; new-style agricultural production and management entities in China at this stage, as well as their production behaviors, play an important role in achieving sustainability in agricultural development. The scientific evaluation of family farm management efficiency and the identification of an effective path to the high efficiency of family farms with different resource endowments are critical for family farms to transform from quantitative growth to qualitative improvement and develop in a sustainable and healthy way. Based on the data from a rural fixed observation point of the Chinese Ministry of Agriculture and Rural Affairs, this study randomly selected representatives from 532 family farms from 27 provinces, municipalities, and autonomous regions in China as research objects; calculated their total factor productivity based on the DEA model; and employed the Qualitative Comparative Analysis (QCA) method to identify the configuration models for a high total factor productivity, which combines the factors of land investment, capital investment, labor investment, education level of farm leaders, land transfer years, the introduction of new technology and new equipment, and financial support. It is found that the average efficiency of family farms in China is not high yet, and both the pure technical efficiency and scale efficiency have great room for improvement. The efficiency of family farms is not determined by one single condition, but by the combinations of multiple factors. The introduction of new technology and new equipment, long land transfer period, high input of production and labor, and financial support are the driving forces to improve the efficiency of family farms. This demonstrates that although the current family farms are still in the cultivation stage of capital and labor-intensive investment, they do not mainly rely on traditional agricultural productions such as labor to achieve high efficiency. The managerial implications are as follows. First, the strategy of intensive and efficient management instead of the blind expansion of land scale should be considered, the full play to the role of family labor while controlling the scale of employees is highly suggested. Second, attention should be paid to the accumulation of the human capital of family farm practitioners, which implies that more highly educated people for family farm management, as well as high-technical-skilled farm operators, should be employed. Third, it is necessary to create a good institutional environment for the development of family farms and to increase financial support such as credit loans for family farms.

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Production Efficiency of Family Farms and Business Farms in the Brazilian Regions

Cited by 2 publications

References 29 publications

Climate and weather impacts on agriculture: the case of Brazil

Climate and weather impacts on agriculture: the case of Brazil

A Configurational Analysis of Family Farm Management Efficiency: Evidence from China

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