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

Olli Niskanen and Anna-Maija Heikkilä

Agricultural and Resource Economics Review, 2015, vol. 44, issue 01, 13

Abstract: In Finland, expanding dairy farms often face the problem of additional fields being geographically distant and only available as small parcels. We develop a stochastic production frontier model to estimate the technical efficiency of Finnish dairy farms and simulate the effect of parcel distance and parcel size on the efficiency of an average farm for 2000 through 2009. The overall development of technical efficiency is positive during the study period but increases in distance and decreases in parcel size both significantly reduce farm efficiency. Therefore, efforts to improve the parcel structure are justified.

Keywords: Land Economics/Use; Livestock Production/Industries; Productivity Analysis (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Journal Article: The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:arerjl:200996

DOI: 10.22004/ag.econ.200996

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