Abstract

This paper estimates a stochastic production frontier based on experimental data of cereals production in Finland over the period 1977-1994. The estimates of the production frontier are used to analyze nitrogen and phosphorous productivity and efficiency differences between soils and crops. For this input specific efficiencies are calculated. The results can be used to recognize relations between fertilizer management and soil types as well as to learn where certain soil types and crop combinations require special attention to fertilization strategy. The combination of inputs as designed by the experiment shows significant inefficiencies for both N and P. The measures of mineral productivity and efficiency indicate that clay is the most mineral efficient and productive soil while silt and organic soils are the least efficient and productive soils. Furthermore, a positive correlation is found between mineral productivity and efficiency. The results indicate that substantial technical efficiency differences between different experiments prevail.;

Highlights

  • This paper estimates a stochastic production frontier based on experimental data of cereals production in Finland over the period 1977–1994

  • The results indicate that substantial technical efficiency differences between different experiments prevail

  • The stochastic Translog production frontier has been estimated for barley, oats and wheat

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Summary

Introduction

This paper estimates a stochastic production frontier based on experimental data of cereals production in Finland over the period 1977–1994. The estimates of the production frontier are used to analyze nitrogen and phosphorous productivity and efficiency differences between soils and crops. For this input specific efficiencies are calculated. Mineral emissions from agriculture are claimed to contribute to a range of environmental problems that have arisen in the past decades. Examples of these problems are eutrophication of surface water, ozone depletion and pollution of natural areas (van der Bijl et al 1999). Several studies indicate that farmers can reduce mineral emissions by using mineral inputs in a more efficient way The scope for the efficient use of minerals may be limited by natural conditions such as soil type and climate

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