Abstract
This study has focused on two main tasks: verifying the suitability of using stochastic frontier analysis on a transforming sector, and providing empirical evidence to explain the technical efficiency structure among farms in the time period 2000–2004. Two stochastic frontier model specifications were employed, the Battese and Coelli 1992 specification with the systematically time-varying inefficiency effect, and the Battese and Coelli 1995 one stage specification explaining technical inefficiency based on farm-specific variables. Our analyses were carried out at the commodity level, wheat production, where the accessibility of a data panel allowed us to enrich the calculation of the level of technical efficiency by the analysis of productivity changes within the chosen period of time, supports this idea as well. 
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