Farm Advisory Services and total factor productivity growth in the Irish dairy sector

Iordanis Parikoglou, Grigorios Emvalomatis, Fiona Thorne and Michael Wallace

European Review of Agricultural Economics, 2023, vol. 50, issue 2, 655-682

Abstract: This paper investigates the impact of the engagement of individual farmers with Farm Advisory Services (FAS) on total factor productivity (TFP) growth, as a relevant indicator of competitiveness under the vision of sustainable intensification. Using farm-level data from the Irish dairy sector between 2008 and 2017, we estimate a random-coefficients stochastic frontier model and construct a TFP growth index, extending Orea (2002) such that the contribution of FAS becomes an additional component of the index. The results indicate that the main driver of TFP growth was technical change and efficiency gains; a negative scale effect slowed down TFP growth, but this impact was counteracted by the positive contribution of FAS to productivity growth.

Keywords: farm advisory services; sustainable intensification; causal inference; productivity; efficiency; Irish dairy sector; stochastic frontier analysis (search for similar items in EconPapers)
Date: 2023
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