New Zealand Journal of Crop and Horticultural Science
abstracts
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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