Technical efficiency and farm size: an analysis based on the Brazilian agriculture and livestock census

Carlos Otavio de Freitas, Erly Cardoso Teixeira, Marcelo Jose Braga, Amanda Massaneira de Souza Schuntzemberger

Abstract


This paper analyzes the relationship between technical efficiency and farm size, considering different classes of area and efficiency levels in Brazil. Stochastic Frontier Production was used to obtain the technical efficiency and the Quantile Regression was used to identify their determinants. Microdata from the 2006 Brazilian Agriculture Census were used. It was found a positive and non-linear relationship between farm size and efficiency in all area classes. However, the more efficient the producers, the weaker the relationship, which indicates that such producers were less dependent on the land factor. In addition, irrigation, technical assistance and cooperatives membership were the factors which contributed most to increasing efficiency, especially for the less efficient producers.


Keywords


farm size; agriculture and livestock; stochastic frontier; technical efficiency; quantile regression

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DOI: http://dx.doi.org/10.13128/REA-25478




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