New Zealand Journal of Crop and Horticultural Science abstracts

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Application of utility-efficient programming to determine economic efficiency of Turkish farmers in the central Anatolian region

Hüseyİn Avnİ Cİnemre
Vedat Ceyhan*

Department of Agricultural Economics
Faculty of Agriculture
University of Ondokuz Mayis
55139 Samsun, Turkey
email: vceyhan@omu.edu.tr

Abstract This research generated stochastically efficient farm plans in the relevant range of risk aversion and calculated the efficiency measures for the three representative farm sizes in the central Anatolian region of Turkey. Utility-efficient programming was used to determine an efficient set of farm plans. Research results showed that total net farm revenue increases for all farm sizes as risk aversion decreases. An economic efficiency score of 0.54 for both small and medium size farms indicated that there is considerable scope for farmers to increase their total net farm revenue using existing technology without additional inputs. Allocative and technical inefficiencies of sampled farms were 0.22 and 0.24, respectively. Thus, supplying complete technical packages for farms may stimulate the adoption of new technologies. Focusing on production practices and marketing efficiency in farmers’ training and extension programmes may also help to increase economic efficiency in the research area.

Keywords stochastic efficiency; utility-efficient programming; risk aversion; efficiency analysis

New Zealand Journal of Crop and Horticultural Science, 2006, Vol. 34: 381–391
0014–0671/06/3404–0381 © The Royal Society of New Zealand 2006
*Author for correspondence. 
H05088; Online publication date 20 November 2006. Received 30 July 2005; accepted 24 July 2006

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