The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms

Niskanen, Olli; Heikkilä, Anna-Maija

doi:10.1017/s1068280500004627

Cited by 6 publications

(6 citation statements)

References 64 publications

(38 reference statements)

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“…Del Corral et al (2011) find that larger farm sizes lead to increased technical inefficiency, but interaction effects are not considered. Niskanen and Heikkilä (2015) note that increasing parcel size reduces technical inefficiency while parcel distance increases technical inefficiency. 19 Del Corral et al (2011) and Carroll et al (2007) report herd size elasticities of 0.68 and 0.67 respectively.…”

Section: Input Elasticitiesmentioning

confidence: 98%

“…We use a stochastic production frontier (SPF) model (Aigner et al, 1977), to estimate technical inefficiency. This approach was also used by Del Corral et al (2011), Orea et al (2015, Niskanen and Heikkilä (2015) and Mehmood et al (2018). Specifically,…”

Section: Empirical Approachmentioning

confidence: 99%

“…Their analyses ignore the performance differences between rented and owned land, which is driven by high opportunity costs and self-selection, as outlined by Bradfield et al (2020) for the Irish dairy industry. Niskanen and Heikkilä (2015) look at the effects of parcel size and parcel distance on technical inefficiency on dairy farms in Finland. The results show that increased parcel area reduces technical inefficiency and increased parcel distance increases 7 Extensive farms are those considered to have low stocking rates and low use of purchased feeds.…”

Section: Factors Affecting Technical Inefficiencymentioning

confidence: 99%

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The Effect of Land Fragmentation on the Technical Inefficiency of Dairy Farms

Bradfield¹,

Butler²,

Dillon³

et al. 2020

J Agricultural Economics

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Exploiting the link between land identification and farm accountancy data, we use a uniquely detailed database to conduct a robust analysis of land fragmentation and its effect on technical inefficiency on dairy farms in Ireland. Using a stochastic production frontier model, our results show that the number of parcels, the average distance between parcels and the main farm, and the portion of land separate from the main farm all increase technical inefficiency. Such inefficiency can be reduced through increased parcel area, reduced travel distances, advisory services contact, intensive practices and hired labour. Our findings support the need for policy to improve land and labour mobility, providing evidence to support incentives to promote the transfer and long-term leasing of agricultural land.

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Section: Input Elasticitiesmentioning

confidence: 98%

Section: Empirical Approachmentioning

confidence: 99%

Section: Factors Affecting Technical Inefficiencymentioning

confidence: 99%

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The Effect of Land Fragmentation on the Technical Inefficiency of Dairy Farms

Bradfield¹,

Butler²,

Dillon³

et al. 2020

J Agricultural Economics

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“…Typically, large dairy farms, which have recently invested in larger cattle houses, have high capital costs and produce higher milk yields with a higher turnover per animal. This is to achieve high gross margins, cover capital costs and thus achieve a shorter payback time of farm debts [16]. Low milk yields are considered clearly uneconomic (ibid).…”

Section: Introductionmentioning

confidence: 99%

Higher Crop Yield Levels in the North Savo Region—Means and Challenges Indicated by Farmers and Their Close Stakeholders

et al. 2018

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The sustainable intensification of farming systems is expected to increase food supply and reduce the negative environmental effects of agriculture. It is also seen as an effective adaptation and mitigation strategy in response to climate change. Our aim is to determine farmers' and other stakeholders' views on how higher crop yields can be achieved from their currently low levels. This was investigated in two stakeholder workshops arranged in North Savo, Finland, in 2014 and 2016. The workshop participants, who were organized in discussion groups, considered some agricultural policies to discourage the improvement of crop yields. Policy schemes were seen to support extensification and reduce the motivation for yield improvements. However, the most important means for higher crop yields indicated by workshop participants were improved soil conditions with drainage and liming, in addition to improved crop rotations, better sowing techniques, careful selection of cultivars and forage grass mixtures. Suggested solutions for improving both crop yields and farm income also included optimized use of inputs, focusing production at the most productive fields and actively developed farming skills and knowledge sharing. These latter aspects were more pronounced in 2016, suggesting that farmers' skills are increasingly being perceived as important.

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“…Areal et al (2012) found that spatial dependence among dairy farms in England and Wales is important in explaining variation in technical efficiency. Niskanen and Heikkilä (2015) focused on the effect of farmland parcel fragmentation on technical efficiency of Finnish dairy farms.…”

Section: Introductionmentioning

confidence: 99%

Factors affecting the technical efficiency of dairy farms in Kosovo

Bajrami¹,

Wailes²,

Dixon³

et al. 2017

JCEA

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A possible accession into the World Trade Organization (WTO) and an expected membership in the European Union raise significant opportunities and challenges for the agricultural sector in Kosovo. As a result of these changes, the sector will have to improve efficiency and competitiveness. This research is motivated by the need to understand better the forces that drive competitiveness in the Kosovo dairy sector. This study estimates the technical efficiency (TE) of 243 dairy farms in Kosovo and relates TE variation to farm size and other primary determinants of TE. A stochastic frontier production function is estimated using a two-stage procedure. Results reveal that concentrate feed intake, land use per cow, and the number of days cows had been kept on pasture have statistically significant impacts on milk productivity per cow. The mean technical efficiency of dairy farms was estimated at 0.72. The major determinants that increase efficiency are breed improvement, intensification of corn production on the farm, improving concentrate feed intake, and using free-range production systems. Given the results from the technical efficiency analysis, it is crucial for the Government of Kosovo to redesign their dairy policy-specifically their grant investment schemes-and target assistance on improving national herd genetics, promoting free range systems and expanding area planted in corn.

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The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms

Cited by 6 publications

References 64 publications

The Effect of Land Fragmentation on the Technical Inefficiency of Dairy Farms

The Effect of Land Fragmentation on the Technical Inefficiency of Dairy Farms

Higher Crop Yield Levels in the North Savo Region—Means and Challenges Indicated by Farmers and Their Close Stakeholders

Factors affecting the technical efficiency of dairy farms in Kosovo

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