Farm-level Decisions Research Articles

Analysis of farmers' communication network and factors of knowledge regarding agro meteorological parameters

Understanding communication networks bear significant importance for undertaking interventions regarding local information needs. It becomes more important if the issues of sensitivity like climate change and its effect on agriculture has to be dealt. The agricultural sector needs accurate, reliable and timely weather and climate information for daily tactical decisions and long-term planning for crop management. They can potentially alter selection and management of crops based on new information obtained within a few weeks or days of planting. The information systems integrating agricultural educators, researchers, extensionists and farmers need to be introduced for agriculture sector for which sufficient data base regarding the gap between the possessed knowledge and the available knowledge and the information source utilization pattern need to be generated. The present study to find out the factors of the knowledge of farmers regarding climate and weather in relation to crop management and the analysis of farmers' communication network was undertaken in Adilabad district (highly vulnerable to climate change effects) of Telangana state of India. A knowledge test specifically designed was administered to 120 respondents and was found that majority of the respondents had moderate level of knowledge. The socio-economic and psycho-personal variables like education, occupation, family type, land holding, social participation, economic motivation, innovativeness, scientific orientation and risk orientation showed positive and significant relationship with knowledge level and in regression analysis education, scientific orientation were positive and had significant contribution to the knowledge level of respondents. Television, radio, agriculture officer and progressive farmers were categorized into strong group of information sources usefulness. In order to support farm level decisions and minimize the loses in adverse climatic and weather conditions farmers' understanding about interaction of climate and agro-ecosystem need to be bridged through inclusion of farmers' communication network

Pesticide use and cooperative management of natural enemy habitat in a framed field experiment

Shifting agricultural land management to one that promotes the use of biological control alongside insecticide spray, requires two key elements: 1) habitat for natural enemies provided by non-crop area within the agricultural landscape, and 2) judicious use of insecticides by farmers. However, barriers to adoption may include low levels of knowledge regarding pests and natural enemies, and the difficulties associated with coordinating among community members. The acts of practicing cautious spraying and of leaving aside land as non-crop habitat (NCH) for natural enemies incur private costs for benefits shared by the community. In this study we tie together several objectives within the analysis of a framed field experiment built around pest management decisions in a smallholder agricultural context. We present results from a within-subjects design (multiple treatments per game group) that estimates a decision model which links behavior back to characteristics of the game, the players, and their group. We examine the relative role these sets of characteristics have in explaining variations in the modeled decisions, including how farmers respond to a nudge (a flat subsidy for allowing land to sit as non-crop habitat) to promote natural enemy services on the land. We observe that group-level characteristics appear to have the greatest roles in explaining how decisions by individuals are made. That is to say, the decision of whether to adopt greater use of NCH has more to do with those around the farmer than the traits of the farmer him or herself. From a policy point of view, it is a signal that (if such game outcomes have any bearing on farm-level decisions) conventional data tools (such as household-level data products from household surveys or censuses) may be inadequate in evaluating appropriate incentives, and newer approaches that identify social networks and neighbor/community interactions may be important.

Gendered and Contextual Factors in the Design of Integrated Pest Management (IPM) Programs for Tomato Growers in East Africa

The Integrated Pest Management (IPM) Collaborative Research Support Program in East Africa has been using a farmer participatory IPM strategy with small-scale tomato growers at on-farm research sites in Kenya and Tanzania since 2004. Understanding local farmer knowledge of agricultural production, including both gendered and contextual factors, is a hallmark of participatory approaches, and important to the design and development of appropriate location-specific IPM technologies. The purpose of this study was to compare and contrast gender and contextual influences on tomato production farm-level decision-making and marketing practices. The results indicate that regardless of context, gender influenced access to resources and this influenced production quantity and decision-making. However, contextual differences predominated suggesting that “one-size does not fit all” and that planned interventions need to be tailored to specific contexts in which gender relations unfold. Contextual similarities in the production of higher value marketed horticultural crops, including female cash crop production and the prevalent use of synthetic pesticides and fertilizers, provides evidence that the gender-specific nature of traditional African farming is transitioning. That extension agents were relatively minor sources of information suggests that horticultural cash crop production is an important contextual basis for differentiating the demand for IPM programs.

Agricultural Productivity, Health and Public Expenditures in Sub-Saharan Africa

National governments are forced to make difficult budget allocations regarding the provision of various social services. The wide-ranging effects of these choices are often not fully understood. In particular, farm-level decisions regarding investments and input allocation are likely dependent on government allocations; not accounting for these may bias the estimation of marginal productivity of agricultural inputs. In this article, we capture the impact of social expenditures on health outcomes through a structural equation model, and use a state variable approach to model marginal productivity of agricultural inputs as a function of health outcomes. This study uses agricultural production data from FAO, annual precipitation on agricultural land (compiled by USDA) and IFPRI’s unique panel of public expenditure data. It covers nine countries in Sub-Saharan Africa from 1990 until 2002. The results show that there is a positive relationship between health expenditures and the marginal productivity of agricultural inputs.

Livestock keepers' reasons for doing and not doing things which governments, vets and scientists would like them to do.

Farmers are rational. They do what makes sense to them in the particular circumstances of their farm, family and business. The challenge for those who want to influence farmers' behaviour - policy makers, veterinarians, public health professionals - is to understand their rationality, to gain some insight into how they see the world and the various options it offers to them. This study explores some of the reasons that emerge from recent research on why their decisions are not always the ones that other people expect or want them to take. These include differences in values, motivations, social influences and behavioural types. Also relevant is how farmers view the sources from which advice and information are seen to come: some advice is rejected simply because a farmer does not see the person or organization as a trustworthy source. It is now widely accepted that farmers' motivations for continuing what they are doing, and for changing what they are doing, are not simply economic or financial. Their decisions cannot be predicted on the basis of simplistic notions of 'economic rationality'. While costs and returns are clearly important in weighing up choices (and farm management economics has given us several useful tools and methodologies for analysing these), farmers operate within a social context that both constrains and facilitates their behavioural choices. They have complex sets of core values, just like anyone else, which will make some choices more attractive than others that are potentially more rewarding financially. It is therefore appropriate to look to the wider family of social sciences beyond economics, including sociology, psychology and social psychology, to help us understand more fully the factors that inform and influence farm-level decisions. And this improved understanding should make us better at designing policy and advisory interventions that will benefit farmers and society.

Optimal combinable and dedicated energy crop scenarios for marginal land

Modern biomass energy sources account for less than 2% of primary world energy supplies while major economies have enabled legislation that aims to increase bioenergy production. In response to controversies over first generation biofuel, it has been argued that ‘marginal land’ should be used to produce dedicated energy crops (DECs). However, defining marginality of agricultural land is complex, and moreover, DECs would have to out-compete current agricultural production in these areas. Utilising a bio-economic farm-level modelling approach we investigate the impact that crop yield penalties resulting from production in marginal land contexts have on financially optimal farm-level crop plans. Where farm businesses choose to de-invest in own farm machinery, yield reductions of less than 10% for winter wheat result in a financially optimal switch to 100% miscanthus production. By contrast, in the presence of own farm machinery, winter wheat yield penalties of 30% are required before 100% miscanthus production is financially optimal. However, under circumstances where DECs also suffer yield penalties on marginal land, the financially optimal crop mix includes combinable crops. The results demonstrate that the optimal crop mix is dependent upon the relative combinable and DEC yields, together with farm-level decisions towards machinery ownership. The focus of much policy attention relating to production of DECs on ‘marginal land’ is therefore argued to be incomplete. Policies which encourage farmers to de-invest in own farm machinery, or incentivise the purchase of specific DEC machinery, may play an important role in assisting the development of DEC production.

Water productivity and food security: considering more carefully the farm-level perspective

With the increasing demands on water resources in many areas, many authors are calling for increases in water productivity in agriculture to ensure sufficient food production in the future. While compelling at first glance, the notion of increasing water productivity is not supported by an underlying economic rationale and is not necessarily consistent with the goals of individual farmers regarding net revenue or subsistence production. Water productivity, as defined in the literature, is a ratio describing the average amount of output or value associated with the amount of water applied or transpired in crop production. As such, the ratio is not a sufficient indicator of economic efficiency and cannot be relied on to determine desirable adjustments in regional water allocations or in farm-level irrigation strategies. I describe the shortcomings of water productivity as an indicator of optimal water use, with a focus on farm-level decisions regarding crop production and irrigation. I note also the importance of considering more carefully the full set of inputs that contribute to crop production, and the risk and uncertainty that influence farm-level decisions. Water productivity does not address these inherent characteristics of agricultural production, which must be considered when evaluating policies and investments to enhance rural livelihoods and ensure food security.

Cost-benefit analysis of shrimp cultivation in the south-west region of Bangladesh

This study conducted a cost-benefit analysis of shrimp farming in the south-west coastal region of Bangladesh. It finds a cost-benefit ratio of 0.77-0.88 for secondary dataset and 0.58-0.80 for primary dataset. The ratio increases for incorporating costs for household-level cooking-fuel, drinking water collection and such other indirect costs originated from shrimp farming intervention. In contrast, the ratio remains within 0.30-0.63 when only the direct cost and benefit components are considered and this is what the farmers usually observe and consider in farm-level decision-making. Therefore, farming decisions undermine invisible and unaccounted costs. The dilemma of higher visible economic return vs. invisible indirect costs of shrimp farming needs to be handled carefully through information dissemination among farmers regarding associated direct and indirect costs and benefits, establishing a clear set of rules, regulations and enabling policy and finally let the stakeholders to take final farming decisions which might facilitate sustainable practices for shrimp farming.

Land and water management planning for increasing farm income in irrigated dry areas

The global population is continuously increasing and good quality land and water resources are simultaneously declining. This condition emphasizes the need of optimal allocation of these resources to fulfill the rising food requirements. This study presents the development and application of two management models for the seasonal optimal allocation of resources to maximize the net annual return of a canal command area of India. The models results show a reduction in rice and mustard crop areas against an increase in wheat, millet, cotton, and sugarcane crops. Under the optimal land and water allocation, the groundwater utilization increased, which in turn mitigated the waterlogging problems of the command area. The net annual return from the command area has increased by about 22%. The different optimal resource allocation strategies show an increase in net annual return with the increase in ranges of deviation from the existing conditions. The developed models can be used as a reliable decision aid for taking the farm and regional level decisions of optimal resources allocation and are able to solve the waterlogging problems of irrigated agriculture. The management models presented here are simple and can be used in any part of the world for maximizing the net agricultural return by mitigating the waterlogging problems in irrigated agriculture. However, under different hydro-geologic conditions, the constraints of the model may differ depending on the groundwater quality/quantity conditions and surface water/groundwater availability.

Farmers in a deregulated dairy regime: Insights from Ireland's New Entrants Scheme

While the impending review of the European Union (EU) Common Agricultural Policy (CAP) is set to have an impact on all farming sectors across Europe, particularly transformative change is sought by policies relating to dairy farmers. EU milk quota abolition in 2015 will fundamentally revise the terms of dairy production, transitioning from policies of subsidy and protection to a scenario where farmers will produce milk on the open market. Dairy quota abolition essentially represents an economic but also socio-cultural disruption for a sizeable cohort of farmers, requiring adaptation to more market-driven production strategies. Agricultural policy-makers in EU member states are demonstrably preparing for this imminent change and dairy farmers are considering and strategising their responses at farm-level. Our focus in this paper is the interplay between quota abolition and farm-level decision-making in the pre-abolition period. Drawing from a broader mixed-methodological and multi-disciplinary research project, this paper uses qualitative narrative analysis to identify the key determinants arising in dairy farmers’ decision-making processes. How are farmers currently strategising their responses to dairy quota deregulation? Using the qualitative Biographic Narrative Interpretive Method (BNIM), we examine the range of factors determining how a particular group of dairy farmers are strategising their positions on the impending open dairy market. Our analysis highlights how, in the advent of a deregulated dairy production regime, dairy farmers are carefully deliberating their responses at farm level, drawing from policy and market related information, their own personal speculations, and conventional wisdom shared with other members of the farming community. We find that the dairy farmers are influenced not only by motivations to increase productivity and scale but by a tenacious approach to farm sustainability and resilience that is informed by past experiences of farming and seeks to preserve and promote socio-cultural farming values. The paper is of particular interest to policy makers and academics interested in the interchange between policy and farmer behaviour, particularly in the context of current CAP reform.

Detail and the devil of on-farm parasite control under climate change

Levels and seasonal patterns of parasite challenge to livestock are likely to be affected by climate change, through direct effects on life cycle stages outside the definitive host and through alterations in management that affect exposure and susceptibility. Net effects and options for adapting to them will depend very strongly on details of the system under consideration. This short paper is not a comprehensive review of climate change effects on parasites, but rather seeks to identify key areas in which detail is important and arguably under-recognized in supporting farmer adaptation. I argue that useful predictions should take fuller account of system-specific properties that influence disease emergence, and not just the effects of climatic variables on parasite biology. At the same time, excessive complexity is ill-suited to useful farm-level decision support. Dealing effectively with the 'devil of detail' in this area will depend on finding the right balance, and will determine our success in applying science to climate change adaptation by farmers.

Economic efficiency analysis of different strategies to control post-weaning multi-systemic wasting syndrome and porcine circovirus type 2 subclinical infection in 3-weekly batch system farms

The study assessed the economic efficiency of different strategies for the control of post-weaning multi-systemic wasting syndrome (PMWS) and porcine circovirus type 2 subclinical infection (PCV2SI), which have a major economic impact on the pig farming industry worldwide.The control strategies investigated consisted on the combination of up to 5 different control measures. The control measures considered were: (1) PCV2 vaccination of piglets (vac); (2) ensuring age adjusted diet for growers (diets); (3) reduction of stocking density (stock); (4) improvement of biosecurity measures (bios); and (5) total depopulation and repopulation of the farm for the elimination of other major pathogens (DPRP). A model was developed to simulate 5 years production of a pig farm with a 3-weekly batch system and with 100 sows. A PMWS/PCV2SI disease and economic model, based on PMWS severity scores, was linked to the production model in order to assess disease losses. This PMWS severity scores depends on the combination post-weaning mortality, PMWS morbidity in younger pigs and proportion of PCV2 infected pigs observed on farms.The economic analysis investigated eleven different farm scenarios, depending on the number of risk factors present before the intervention. For each strategy, an investment appraisal assessed the extra costs and benefits of reducing a given PMWS severity score to the average score of a slightly affected farm. The net present value obtained for each strategy was then multiplied by the corresponding probability of success to obtain an expected value. A stochastic simulation was performed to account for uncertainty and variability.For moderately affected farms PCV2 vaccination alone was the most cost-efficient strategy, but for highly affected farms it was either PCV2 vaccination alone or in combination with biosecurity measures, with the marginal profitability between ‘vac’ and ‘vac + bios’ being small. Other strategies such as ‘diets’, ‘vac + diets’ and ‘bios + diets’ were frequently identified as the second or third best strategy. The mean expected values of the best strategy for a moderately and a highly affected farm were £14,739 and £57,648 after 5 years, respectively.This is the first study to compare economic efficiency of control strategies for PMWS and PCV2SI. The results demonstrate the economic value of PCV2 vaccination, and highlight that on highly affected farms biosecurity measures are required to achieve optimal profitability. The model developed has potential as a farm-level decision support tool for the control of this economically important syndrome.

Assessing the trends and uncertainty of maize net irrigation water requirement estimated from climate change projections for Zimbabwe

► Impacts of climate change on climate parameters were quantified. ► Trends in ET c and net irrigation requirement for maize in Zimbabwe were assessed. ► Uncertainty of projected maize net irrigation requirement (NIR) was assessed. ► The NIR will increase by 0–50%, 50–100% and 50–100% for the 2020s, 2050s and 2090s respectively. Imperfect knowledge arising from unpredictable climate leads inexorably to uncertainty in decision making in agriculture. Uncertainty estimates are needed in descriptive and prescriptive analysis and in validation studies at both farm level and policy level agricultural decision making. This study assessed the trends and uncertainty of the global climate model (GCM) derived net irrigation water requirement (NIR) predictions estimated by the Food and Agriculture CROPWAT model for Natural Agro-ecological Region II in Zimbabwe. The trends and uncertainty were assessed with the aid of descriptive statistics and exploratory data analysis on the simulated climate parameters, crop water requirement and NIR. The temperature and reference evapotranspiration were projected to increase while rainfall was predicted to decrease in the future periods. NIR was projected to increase by an average (and range) of 33% (−22–92%), 66% (15–168%) and 99% (17–205%) in the 2020s, 2050s and 2090s time slices respectively from a baseline of 67 mm. The NIR relative standard deviation and 95% confidence interval averaged 22% and 10% respectively in the 2020s time slice and were projected to increase in the future. Further quantitative expert elicitation that identifies the divergence of opinion within the subject of uncertainty and advocates for policies on a combination of climate mitigation and adaptation measures is recommended.

Opportunities and constraints to legume diversification for sustainable maize production on smallholder farms in Malawi

AbstractSustainable intensification of smallholder farms in Africa is highly dependent on enhancing biological nitrogen fixation (BNF). Legume diversification of maize-based systems is a core example of sustainable intensification, with the food security of millions of farm families at stake. This study highlights the constraints and opportunities associated with the adoption of legumes by smallholder farmers in southern Africa. A two-part survey of households and farm fields (n=88) was conducted in the Ekwendeni watershed of northern Malawi. Participatory research and education activities have been underway for over a decade in this region, resulting in expanded uptake of a range of legume species as intercrops and in rotation with the staple maize crop. Farmer adoption has occurred to a varying extent for soybean (Glycine max), pigeon pea (Cajanus cajan), velvet bean (Mucuna pruriens) and fish bean (Tephrosia vogelii). Farmers, working with the project valued pigeon pea and other legumes for soil fertility purposes to a greater extent than farmers not working with the project. Legumes were valued for a wide range of purposes beyond soil cover and fertility enhancement, notably for infant nutrition (at least for soybean), insect control, and vegetable and grain production for both market and home consumption. Literature values for BNF in tropical legumes range up to 170 kg N ha−1for grain and 300 kg N ha−1for green manure species; however, our field interviews illustrated the extent of constraints imposed by soil properties on smallholder fields in Malawi. The key edaphic constraints observed were very deficient to moderate phosphorus levels (range 4–142, average 33 mg kg−1), and moderately acid soils (range pH 5.1–7.9, average 6.2). The per farm hectarage devoted to legume production relative to maize production was also low (0.15 versus 0.35 ha), a surprising find in an area with demonstrated interest in novel legume species. Further, farmers showed a strong preference for legumes that produced edible grain, regardless of the associated nutrient removal in the harvested grain, and did not sow large areas to legume crops. These farm-level decisions act as constraints to BNF inputs in maize-based smallholder cropping systems. Overall, we found that legume productivity could be enhanced. We documented the value of policies and educational efforts that support farmers gaining access to high-quality seeds, amendments for phosphorus-deficient soils, and promotion of multipurpose legumes that build soils through leafy residues and roots, as well as providing grain for food security and sales.

BPEX Pig Health Scheme: a useful monitoring system for respiratory disease control in pig farms?

BackgroundRespiratory diseases account for significant economic losses to the UK pig industry. Lesions indicative of respiratory disease in pig lungs at slaughter e.g. pneumonia and pleuritis are frequently recorded to assess herd health or provide data for epidemiological studies. The BPEX Pig Health Scheme (BPHS) is a monitoring system, which informs producers of gross lesions in their pigs' carcasses at slaughter, enabling farm-level decisions to be made. The aim of the study was to assess whether information provided by the BPHS regarding respiratory lesions was associated with respiratory pathogens in the farm, farm management practices and each other.ResultsBPHS reports were obtained from a subset of 70 pig farms involved in a cross-sectional study conducted in 2008-09 investigating the epidemiology of post-weaning multi-systemic wasting syndrome. The reports were combined with data regarding the presence/absence of several pathogens in the herd and potential farm-level risk factors for respiratory disease. Principal component analysis (PCA) performed on BPHS reports generated three principal components, explaining 71% of the total variance. Enzootic pneumonia score, severe pleurisy and acute pleuropneumonia had the highest loadings for the principal component which explained the largest percentage of the total variance (35%) (BPHS component 1), it was thought that this component identifies farms with acute disease. Using the factor loadings a score for each farm for BPHS component 1 was obtained. As farms' score for BPHS component 1 increased, average carcass weight at slaughter decreased. In addition, farms positive for H1N2 and porcine reproductive and respiratory disease virus (PRRSV) were more likely to have higher levels of severe and mild pleurisy reported by the BPHS, respectively.ConclusionsThe study found statistical associations between levels of pleurisy recorded by BPHS at slaughter and the presence H1N2 and PRRSV in the herd. There is also some evidence that farms which submit pigs with these lesions may have reduced productivity. However, more research is needed to fully validate the scheme.

Integrating indigenous knowledge with conventional science: Enhancing localised climate and weather forecasts in Nessa, Mulanje, Malawi

► Integration of indigenous knowledge and scientific climate forecasts investigated. ► Villagers perceptions on climate change and variability validated with empirical evidence. ► IK indicators perceivably no longer reliable due to high climate variability. ► Scientific nature of climate forecasts major constraint for making farm decisions. ► Closer partnership between IK and climate information providers vital. Subsistence rain fed agriculture underpins rural livelihoods in the Sub Saharan Africa. The overdependence on rainfall suggests the need for more reliable climate and weather forecasts to guide farm level decision making. Traditionally, African farmers have used indigenous knowledge (IK) to understand weather and climate patterns and make decisions about crops and farming practices. However, increased rainfall variability in recent years associated with climate change has reduced their confidence in indigenous knowledge, hence reducing their adaptive capacity and increasing their vulnerability to climate change. To address this problem, researchers are advocating the integration of indigenous knowledge into scientific climate forecasts at the local level, where it can be used to enhance the resilience of communities vulnerable to climate change. A study was therefore conducted to establish commonly used IK indicators in weather and climate forecasting and people’s perceptions of climate change and variability in Nessa Village, Southern Malawi. We further compared the people’s perceptions on climate change and variability with empirical evidence from a nearby weather station during 1971–2003 and the major constraints that the people face to fully utilise conventional weather and climate forecasts. Our results show various forms of traditional indicators that have been used to predict weather and climate for generations. These include certain patterns and behaviour of flora and fauna as well as environmental conditions. We further established that the peoples documentation of major climatic events over the years in the area agreed with the empirical evidence from the temperature and rainfall data. Overall, rainfall in the area has reduced since 1971 with increasing temperatures. The people were however of the view that current scientific weather and climate predictions in Malawi were not that useful at village level because they do not incorporate IK.

Verifying Credence Attributes in Livestock Production

Livestock producers can respond to increasing consumer demand for certain production process attributes by providing verifiable information on the practices used. Consumer willingness to pay data were used to inform producer decision-making regarding selection of verification entities for four key production process attributes in the production of pork chops and milk. The potential for informing farm-level decision-making with information about consumer demand for product and production process attributes exists beyond the two products assessed as example cases in this analysis.

Economic assessment of shade-cloth covers for agricultural irrigation reservoirs in a semi-arid climate

We assess the economics of investing in suspended shade-cloth covers (SSCCs) in agricultural water reservoirs (AWRs) to reduce evaporation losses and save water for irrigation in arid and semi-arid areas. In particular, we examine the use of SSCCs in the Segura River Basin (southeastern Spain). The decision to install a cover depends on the potential evaporation losses, reservoir characteristics, cover effectiveness, the value of water, filtration requirements, water salinity, government subsidies and the installation, operation and maintenance costs. The economic viability of the investment increases with the value of the saved water, i.e., with water scarcity, and is greater when water quality is poor. Hence SSCCs can be helpful in arid and semi-arid regions facing water shortages and water quality problems. The farm-level decision to install a cover depends largely on the cost of purchasing water, when water is generally available, and the profit from increased crop production or enlarged farmlands, when water is scarce.

Adapting to Climate Change Mosaically: An Analysis of African Livestock Management by Agro-Ecological Zones

Abstract This paper examines African livestock management across Agro-Ecological Zones (AEZs) to learn how they would adapt to climate change in the coming century. We analyze farm level decisions to own livestock and to choose a primary livestock species using logit models with and without country fixed effects or AEZ fixed effects. With a hot dry scenario, the results indicate that livestock ownership will increase slightly across all of Africa, but especially in West Africa and high elevation AEZs. Dairy cattle will decrease in semi-arid regions, sheep will increase in lowlands, and rearing chickens will increase at high elevations. On the other hand, if climate becomes wetter, livestock ownership will fall dramatically in lowlands and high elevation moist AEZs. Beef cattle will increase and sheep will fall in dry AEZs, dairy cattle will fall precipitously and goats will rise in moist AEZs, and chickens will increase at high elevations but fall at mid elevations. Therefore, adaptation measures should be tailored to a specific AEZ.

Technological Change and Technical Efficiency for Diary Farms in Three Countries of South America

A B S T R A C T The progressive liberalization of agricultural markets, along with the threat that imported products can pose to local producers, reveals the importance of productivity growth as a mechanism to improve competitiveness. Technical efficiency measurement is the most studied component of productivity because it can help to generate valuable information for policy formulation and farm level decisions focused on the improvement of farm performance. This study uses unbalanced panel data sets for dairy farms from Argentina, Chile and Uruguay, to estimate stochastic production frontier models. These frontiers are then used to estimate economies of size, technological change and technical efficiency. All estimations are based on the Battese and Coelli (1992) model, which is widely used in empirical productivity studies. The models for all three countries exhibit increasing returns to scale, which suggests that the dairy farms in the samples are operating at a suboptimal size. The average annual rate of technological change for Argentina was 0.9%, for Chile 2.6% and for Uruguay 6.9%, while average technical efficiency was 87.0%, 84.9% and 81.1%, respectively.