Impact of Off-farm Income on Farm Efficiency in Slovenia

Štefan Bojnec () and Imre Fertő

No 108945, 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK from Agricultural Economics Society

Abstract: The paper investigates the impact of off-farm income on farm technical efficiency for the Slovenian Farm Accountancy Data Network farms in the years 2004-2008. Farm stochastic frontier time-varying decay inefficiency is positively associated with total utilised agricultural areas and total labour input, and vice versa with intermediate consumption and fixed assets. We find a positive association between farm technical efficiency and the off-farm income. Farm technical efficiency has increased steadily over time, the process, which was led by the off-farm spill over effect and most efficient farms. Farm technical efficiency is also positively associated with economic farm size, while association with subsidies is mixed depending on the estimation procedure. Quantile regression confirms the positive and significant associations between farm technical efficiency and off-farm income, and between farm technical efficiency and farm economic size, as well as also the positive association between farm technical efficiency and subsidies, but the results are sensitive by quantiles.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 19
Date: 2011-04
New Economics Papers: this item is included in nep-agr, nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Impact of Off-farm Income on Farm Efficiency in Slovenia (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc11:108945

DOI: 10.22004/ag.econ.108945

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