Abstract

This study focuses on soil erosion and incorporates this in a stochastic production framework using Fijian ginger farmers as a case study. Empirical estimates using cross sectional data showed that these farmers on average were producing at 61% of the maximum potential output. They faced a 17% loss of output due to low soil erosion and about 27% output loss if soil erosion was moderate to high. In addition, profit, land ownership, ethnicity of farmer, and education affected technical efficiency while distance from an agricultural station, slope of land, and hot water treatment were insignificant in their effect on efficiency.

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