The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability Rice Farms

Richard Nehring and Charlie Hallahan

No 196841, 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia from Southern Agricultural Economics Association

Abstract: This paper estimates technical efficiency on rice farms, following a translog stochastic production frontier (SPF) approach and compares the relative performance of farm operator households with and without off-farm wages and salaries. We use 2000, 2006 and 2013 USDA data for rice producing states-identifying different performance measures. Previous studies suggest that off-farm work influences economic performance—by “improving” managerial performance. We find that off-farm income generally boosts scale and technical efficiency on smaller, mid-size and larger operations, and is also consistent with higher farm and household returns. We also find that the number of hours worked off-farm by the operator contributes to a higher technical efficiency on larger typologies.

Keywords: Production; Economics (search for similar items in EconPapers)
Pages: 22
Date: 2015-01-15
New Economics Papers: this item is included in nep-agr and nep-eff
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea15:196841

DOI: 10.22004/ag.econ.196841

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