Translog Frontier Research Articles

Performance Gap between Best-bet System of Rice Intensification and Farmers’ Practices in Zamfara State, Nigeria: An Additive-Multiplicative Translog Stochastic Frontier Profit Function

Inadequate information about the performance of a technology can hinder its uptake. The aim of this paper was to provide a thorough examination of the performance gap between the best bet system of rice intensification (BB-SRI) and farmers’ practices (FP) in Zamfara State, Nigeria. Using a multi-stage sampling technique, a sample of 300 rice farmers were selected from the Bakolori Irrigation Scheme, Zamfara State, among which 40 farmers (13%) used the BB-SRI while the remaining 260 farmers (87%) used FP. The data were analyzed using descriptive statistics, farm budget technique, additive-multiplicative stochastic frontier translog profit function and propensity score matching (PSM) estimator. The findings revealed that yield increased from 5,285 kg/ha with FP to 12,735 kg/ha with BB-SRI, an increase of 141%. Rice production was profitable under both FP and BB-SRI with return on investment (ROI) increasing from 2.64 using FP to 6.66 under BB-SRI, an increase of 152%. There was evidence of profit inefficiency in rice farming since the profit could still be raised by 7% and 21% using FP and BB-SRI, respectively. The yield, ROI and profit efficiency gaps between the BB-SRI and FP ranged from 7,452 kg/ha to 7,510 kg/ha, 4.02 to 4.05, and from 0.08 to 0.09, respectively. We recommend therefore that important investments and training in SRI should be considered as a top priority for the transformation and sustainability of the rice sector in order to ensure its successful promotion, uptake and diffusion across other rice producing States in Nigeria.

Impact of African Swine Fever Epidemic on the Cost Intensity of Pork Production in China

China’s African swine fever (ASF) outbreak, which started in 2018, has had a huge and far-reaching impact on China’s hog industry, and it has not been completely eliminated so far. This article analyzes the impact of the ASF epidemic on the costs and technical efficiency of hog production in China based on data from the China Agricultural Product Cost–Benefit Compilation (2012–2021) using a stochastic frontier trans-log production function model. The results show that, after the outbreak of the ASF epidemic in China, feed costs, medical and epidemic prevention costs, and other costs of hog production in China increased significantly; the technical efficiency of China’s hog production decreased significantly; large-scale hog farms were the most responsive to and greatly affected by the ASF epidemic; and there are regional differences in the impact of the ASF epidemic on technical efficiency of hog production. Future policies should focus on strengthening the R&D investment and technology promotion capacity of hog production, developing moderate-scale farming, and enhancing regional cooperation to improve technical efficiency of hog production.

A Study on the Productivity of Salt Farming on Madura Island, Indonesia

Salt is a strategic commodity in the Indonesian economy, with consistent growth in both import volume and number. However, the inability of domestic production to fulfil existing demand is caused by low productivity, which is also affected by farmers on Madura Island. Therefore, this study aims to analyze the determinant factors of salt production, the level of technical efficiency, and the socio-economic factors that cause technical inefficiency. The samples involved 120 people as determined by multistage sampling in 3 regencies on Madura Island, namely Sampang, Pamekasan, and Sumenep. Meanwhile, the parameters were analyzed using the Translog Frontier Stochastic Production Function model and multiple linear regression. The results showed that land and geomembrane influenced salt production, as well as most farmers have not produced efficiently due to the causing factors such as age, number of family members, secondary income, geomembrane, and bozem ownership.

Environmental Efficiency Analysis of Basmati Rice Production in Punjab, Pakistan: Implications for Sustainable Agricultural Development

The intensive use of chemicals worked as a catalyst to shift the production frontier but the most critical factor of maintaining a clean environment was totally ignored. The present study attempts to estimate the environmental efficiency of rice production by employing the translog stochastic production frontier approach. The data are collected from five major Basmati rice growing districts (Gujranwala, Sheikupura, Sialkot, Hafizabad, and Jhang) of Punjab in 2006. Chemical weedicides and nitrogen are treated as environmentally detrimental inputs. The mean technical efficiency index is sufficiently high (89 percent) but the environmental efficiency index of chemical weedicides alone is 14 percent while the joint environmental efficiency index of chemical weedicides and nitrogen is 24 percent implying that joint environmental efficiency is higher than chemical weedicide alone. It indicates that substantial reduction (86 percent) in chemical weedicide use is possible with higher level of productivity. Moreover, it is likely to contribute a considerable decrease in environmental pollution which is expected to enhance the performance of agriculture labour. The reduction in chemical weedicides will save Rs 297 per acre and Rs 1307.3 million over all from the rice crop in Punjab, improving the profitability of rice growing farmers by the same proportion. Empirical analysis indicates that reduction in environmental pollution together with higher level of profitability in rice production is achievable. JEL classification: N5, O13 Keywords: Rice Production, Environmental Efficiency, Weedicide, Fertiliser (NPK), Stochastic Translog Frontier

Cassava: Farmers Adoption and Livelihood in Bono Region Performance of Stochastic Frontier Functions

The objective is to analyze the stochastic frontier function in comparing the performance of the Cobb-Douglas and Translog Frontier functions in the cultivation of cassava in the Bono Region of Ghana. The assumption is that given the same level of productive inputs of farmers at any given farming season, across heterogeneous farmlands, both functions are likely to produce the same results. The interview was used as the instrument for obtaining plot-specific data from 120 cassava farmers across six districts and data was analyzed using the quantitative technique. Direct predictors of output include plot size, labor, hoes, cutlasses, and cassava stems. Using a half-normal distributional assumption, the study evaluates variance parameters of the composed error terms. The results showed that the estimated functions produced comparable results in terms of magnitude and signs of input variables. While efficiency appeared to be much higher in Cobb-Douglas than in the Translog function, the variance parameter score for the CD function is significantly different from those of the Translog function, and the maximum output attainable for the given productive inputs was 40% and 15% respectively. This means that farmers can scale up their current crop yield by 60% and 85% respectively of their frontier functions using the same inputs and technology if the appropriate interventions are carried out. The limitation of the study is the non-inclusion of environmental factors such as rain as productive input and the study is limited to comparing frontier functions. The results underscored the importance of examining the current production behavior of farmers for reliability and policy inferences

Testing specification of distribution in stochastic frontier analysis

Stochastic frontier analysis is regularly used in empirical studies to evaluate the productivity and efficiency of companies. A typical stochastic frontier model involves a parametric frontier subject to a composite error term consisting of an inefficiency and a random error. We develop new tests for specification of distribution of the inefficiency. We focus on simultaneous relaxation of two common assumptions: (1) parametric frontier which may lead to false conclusions when misspecified, and (2) homoscedasticity which can be easily violated when working with real data. While these two issues have been extensively studied in prior research exploring the estimation of a stochastic frontier and inefficiencies, they have not been properly addressed in the considered testing problem. We propose novel bootstrap and asymptotic distribution-free tests with neither parametric frontier nor homoscedasticity assumptions, in both cross-sectional and panel settings. Our tests are asymptotically consistent, simple to implement and widely applicable. Their powers against general fixed alternatives tend to one as sample size increases, and they can detect root-n order local alternatives. We demonstrate their efficacies through extensive simulation studies. When applied to a banking panel dataset, our tests provide sound justification for the commonly used exponential specification for banking data. The findings also show that a new parametric frontier model is more plausible than the conventional translog frontier.

Exploring the relationship between plot size and fertilizer use efficiency: evidence from large-scale farming in China

PurposeThis paper investigates the relationship between plot size and fertilizer use efficiency (FE) in Chinese large-scale farming and searches for the underlying mechanisms that explain this relationship.Design/methodology/approachBased on a household- and plot-level data set of large-scale production units (LSPUs) from Jiangsu and Jiangxi Provinces, the technical and fertilizer use efficiency of large-scale rice production is estimated by applying a translog stochastic frontier production function. The authors impose a monotonicity condition on the translog frontier using a three-step procedure to get theoretically consistent efficiency estimates. A beta regression model is then used to explore the association between plot size and LSPUs' efficiency in fertilizer application.FindingsThe average FE for the sampled plots is around 30%, which shows a large potential for LSPUs to reduce fertilizer use. A U-shaped relationship is observed between plot size and FE. The authors relate this non-linear pattern to the substitution of labour with capital-intensive technology and the efficiency differences in terms of farming performance between family and hired workers.Originality/valueFirst, according to the authors’ knowledge, this paper is a first attempt to study the size–efficiency relationship focussing on fertilization practices of large-scale farming. The second contribution lies in the large-scale ranges of the plot-level data set. Third, efforts are made to reveal the mechanisms determining the plot size–FE relationship. Fourth, the authors provide guiding evidence for policymaking, as they show that the size of individual plots deserves equal attention in land consolidation decisions. Methodologically, this paper improves existing estimates of single-factor technical efficiency issued from a restricted production frontier model.

Performance of Translog and Cobb-Douglas models in the estimation of technical efficiency of Irish potato production in Plateau State, Nigeria

The study compared the performance of Cobb-Douglas and Translog frontier models in the analysis of technical efficiency in Irish potato production in Plateau State. A multistage sampling technique was employed to select 180 respondents for the study. Data were analyzed using stochastic frontier model in the Cobb-Douglas and the Translog functional forms. Results revealed that farm size and seed had positive and significant coefficients under the Cobb-Douglas model. However, estimated Translog model showed that, while farm size and labour had negative relationships with output, fertilizer had a positive relationship. The elasticity estimates from both frontier models show that Irish potato farmers were operating at an increasing return to scale. The mean technical efficiency estimates were 68% and 59% for Cobb-Douglas and Translog models respectively. Hypothesis testing showed that there was a significant difference in the technicalefficiency estimates between the Cobb-Douglas and Translog frontier models. The inefficiency estimates revealed that education, household size and extension reduced inefficiency while farming experience increased inefficiency under the Cobb-Douglas model. None of the socioeconomics variables analysed in the Translog model for inefficiency was significant. It is recommended that training of the farmers on the optimum rate of input utilization and combination should be organized. The Cobb-Douglas model provided better results, in terms of economic and statistical properties of the coefficients, and therefore recommended for the estimation of technical efficiency of Irish potato farms in the study area.
 Key words: Cobb-Douglas, performance, technical efficiency, translog

Improving Soya Bean Productivity for Poverty Alleviation and Food Security in Upper West Region of Ghana: A Resource Use Efficiency Analysis

Soya bean is an important economic crop for smallholder farming systems in Upper West Region of Ghana. In spite of the introduction of modern and improved soya bean production technologies in Ghana, the productivity of the crop in the region is still low. Given that inefficient use of resources is a potential course of low yields, this study analyses the resource use efficiency of soya bean production. Using cross-sectional data collected from 271 soya bean farmers from the Upper West Region of Ghana, the study employed the Stochastic Frontier Translog Production Function as well as the ratio of Marginal Value Product to Marginal Factor Cost to understand the resource use efficiency of soya bean farmers in the region. The empirical results showed that the estimated coefficients of soya bean seeds, labor and farm size were significant and positively related to soya bean output even though fertilizer input was surprisingly significantly and negatively related to the output of soya bean. Also, resources employed in soya bean production were found not to be efficiently utilized as they were underutilized, indicating that yield and profit could be improved with optimal use of production inputs. Finally, the paper revealed that access to soya bean threshers is the most important constraint faced by farmers in the region. For the region’s soya bean yield to be improved, government and development organizations should assist soya bean farmers by removing major bottlenecks to acquisition of resources required for the production and postharvest handling of the crop.

Can energy conservation and substitution mitigate CO2 emissions in electricity generation? Evidence from Middle East and North Africa

This study objectively investigates the influence of energy conservation and substitution strategies in mitigating CO2 emissions in the electricity generation sector in Middle East and North Africa (MENA) region. The paper specifically explores if climate action implementation may negatively affect energy consumption on economic growth ambition and whether technical change in factor and inter-fuel substitution support in achieving sustainable development goals (SDGs) 7, 8 &13. This paper conducts the study under the life cycle analysis (LCA) procedure. We also apply stochastic frontier Translog production and ridge regression techniques with data for 2000–2015. The results currently show that renewable energy intensity falls below the breakeven level. Meanwhile, nonrenewable energy intensity is much higher. Furthermore, production factors and inter-fuel technological change show that capital-energy and renewable-nonrenewable energy are perfect substitutes under the electricity sector. Moreover, the findings reveal low energy efficiency of 40 percent with poor carbon performance. We, therefore, conclude that MENA region may not achieve cleaner, affordable energy and climate action concurrently with economic growth under the current production technologies by the fiscal year 2030. We further conclude that economic growth is presently inversely related to energy efficiency but positively with energy intensity. This suggests that MENA region economic growth drive is highly linked with nonrenewable consumption and also not supporting energy conservation strategies. Additionally, we conclude that energy efficiency improvement and reduction in energy intensity may not be achieved as the governments keep subsidizing electricity in the region. Besides, the more policymakers pursue economic growth through energy intensity indicators, the more energy is consumed through the energy rebound effects. Based on these findings and conclusions, we recommend insightful strategies under the electricity sector. This study adds new body of knowledge by extending Translog production to estimate energy intensity & efficiency under the LCA procedure. Scholars also contribute to data and variable modeling under the SDGs in discovering CO2 emission mitigation in the electricity sector which could be replicated in other countries or regions.

Technical efficiency of rice farm under risk of uncertainty weather in Yogyakarta, Indonesia

One of the climate change phenomenon is uncertainty weather condition. This study aims to understand the technical efficiency of rice farm in Yogyakarta included the factors that influence them in uncertainty weather condition. We survey for sampling has been done in Sleman and Bantul Regency based on about 8 of water irrigation resources and about 25 locations of water irrigation area. The sampling method is simple random sampling to take 125 samples. Cobb Douglas translog frontier production function model has been used to analyze the factors that influence rice production and technical efficiency. The result of the production function shows that the factors that influence the rice production are land, labour, organic fertilizer, N fertilizer, irrigation pollution, irrigation type, season and location. The rice farm has not efficient. The study result gives the implication that the rice farm efficiency for sustainable agriculture, it needs using optimal input, peasant skill encouragement, and infrastructure development of irrigation.

Environmental efficiency of semi-organic rice farming in Bantul Regency

The problems faced in organic rice farming is decreasing quality and fertility of land caused by the use of non-organic fertilizers or pesticides and also by climate change. This study aims to determine the environmental efficiency of semi-organic rice farming. The sampling method was purposively carried out consisting of 115 farmers from four farmer groups in Bantul Regency and had implemented semi-organic rice farming. The technical analysis used was Stochastic Frontier Translog Analysis with one input variable namely N fertilizer which was thought to be an input that could decrease environmental quality (detrimental environment input). The results showed that the coefficient value used to analyze the environmental efficiency from the Stochastic Frontier Analysis Translog is the coefficient value that interacts with N fertilizer. The environmental efficiency of semi-organic rice farming is still very low, ranging from 0.1434 to 0.6541 with an average of 0.40. This efficiency value shows that semi-organic rice production will survive or even increase by reducing 60% from the use of N fertilizer. Environmental efficiency is influenced by the use of factors of production which are detrimental to the environment, climate change (temperature changes) and water resources management.

Efficiency Analysis Among Maize and Cassava Farmers in Southwest, Nigeria: Application of Log Input Mean Correction Strategy

This study applied log input mean correction strategy and imposed linear homogeneity restriction in the estimation of efficiency among maize and cassava farmers in Southwest, Nigeria. Multistage sampling procedure was used to select 310 respondents for the study. Data collected through well-structured questionnaire were analysed using Descriptive Statistics, Stochastic Frontier Translog Cost and Production Function. The results show direct relationships between the total cost of production with respect to maize output and input prices in the two enterprises. The input price elasticity estimates in the two enterprises support the assumption that the cost function is homogenous of degree one and that the cost minimizing factor prices is non-decreasing in P. Also, regularity condition of monotonicity is fulfilled as inputs increase output in the two enterprises. Therefore, maize and cassava farmers should be encouraged to expand their scale of operation which also allows them to benefit from economies of scale.Keywords: Efficiency, homogeneity, stochastic, crop, log-input.

Profit efficiency among maize farmers and implications for poverty alleviation and food security in Ghana

Abstract In this study, we analysed the profit efficiency of Ghanaian maize farmers using data collected from 576 farmers in four agro ecological zones of Ghana. The stochastic frontier translog profit function was the main method of analysis. We find that maize production in Ghana is profitable but profitability will be adversely affected if prices of relevant inputs (pesticides, fertiliser, herbicides, labour and seeds) and farm size increased. Generally, the mean profit efficiency for all farmers was estimated to be 48.4% and maize farmers in the transitional zone were most efficient in their profit levels. Finally, profit efficiency was found to be influenced by educational level, gender, access to agricultural extension officers, good roads and credit. Improvement in the quality of road infrastructure in Ghana's maize producing areas could help lower the prices of production inputs. Stakeholders (Government and Non-Governmental Organisations) in the maize industry are encouraged to help put subsidies on prices of production inputs to make them accessible and cost effective in employing them. They are also advised to help provide extension agents with appropriate incentives that will make them committed to their duties. Implementation of the above recommendations among others will improve profit efficiency of Ghanaian maize farmers and make the maize industry an avenue for job creation and a recipe for helping Ghana to meet the sustainable development goals on no poverty and zero hunger.

Analysis of Relationship between Profitability and Efficiency of Social Enterprise Using the Stochastic Frontier Translog Function

Analysis of Relationship between Profitability and Efficiency of Social Enterprise Using the Stochastic Frontier Translog Function

Comparison of Cobb-Douglas and Translog frontier models in the analysis of technical efficiency in dry-season tomato production

There has been contradiction among researchers regarding similarity or otherwise of technical efficiency estimate obtained from Cobb-Douglas and Translog frontier models. While some researchers believe that results obtained from the two functional forms, given the same data, were essentially similar, others disagreed. This study compared both functional forms to analyze technical inefficiency in dry-season tomato production in Jos-South Area of Plateau State. Data were collected from 60 dry-season tomato farmers sampled through three-staged random sampling technique. The analyses of the data were done using both Cobb-Douglas and translog frontier models. The results showed that the estimated elasticities, efficiency scores and inefficiency effects from Cobb-Douglas and Translog functional forms differ significantly. Therefore, the choice of functional form for efficiency analysis should be based on convenience, meeting selection criteria premise on the value of variance-parameters and objective of the study. Keywords : Efficiency, comparison, Cobb-Douglas and Translog models

확률적 변경 초월대수함수를 이용한 대안적 에너지효율모델 개발과 국제적 비교

본 연구의 목적은 에너지효율 측정의 다른 대안으로 초월대수 확률변경거리함수를 사용하여 1996-2011 년간 에너지 효율과 에너지원단위의 효율을 추정하고 5개의 소득국가그룹 간에 비교하는 것이다. 실증결과에 의하면 첫째, 화석에너지에 대한 자본스톡과 화석에너지에 대한 비화석연료의 비율의 증가는 화석에너지사용량을 유의적으로 감소시키고 비화석에너지의 증가는 화석에너지원단위를 감소시켰다. 온실가스배출량은 에너지 사용량 및 에너지 원단위와 정(+)의 관계를 갖는 것으로 나타났다. 둘째, 113개국에 대한 1996-2011년간 화석에너지 효율은 평균 0.526으로 나타났다. 5개 소득그룹으로 분류하면 고소득그룹(0.728)과 중 · 고소득그룹(0.552) 그룹의 화석에너지 효율이 가장 효율이 높았고 OECD국가는 기대와 다르게 높지는 못하였다. 셋째, 화석에너지 원단위효율은 전체평균이 0.557로 화석에너지 효율(0.526)보다 다소 높게 나타났다. 5개 소득 그룹으로 구분하였을 때, OECD가 0.614로 가장 높았고 그 다음으로 고소득국가(0.576), 중 · 저소득국가(0.569)가 위치한다. 이는 OECD그룹이 화석에너지 원단위를 구성하는 GDP가 상대적으로 높았기 때문이다.

English

Crop production and productivity are not only inevitably affected by level of adoption of improved technologies and external factors but also the technical efficiencies of producers. The main objectives of this study are to estimate technical efficiency of sample barley farmers, assess determinant factors and compute yield loss due to inefficiency. Plot level data from 180 barley growers were collected through three stage systematic random sampling procedures. A one-step maximum likelihood was used to estimate stochastic frontier translog production function to determine the level of technical efficiency and its determinant factors. The estimated value of technical efficiency ranges from 0.11 to 0.99 with an average of 0.53 allowing inefficiency gap of 0.47 indicating the opportunity to increase barley output by 47% by using the same inputs mix and existing technology. The study found sex, age and education level of the household head, distance to all weather roads, credit service, group membership, extension contact, training, plot fragmentation, tenure status, and investment in fertilizers significantly impact technical efficiency. The result suggests the need to involve female headed households into extension and trainings, increase the education level of households through informal and formal literacy, inspire household membership into farmers’ groups and enable them to share best practices from model and more experienced farmers, inspire barley producers to invest on fertilizers and strengthen rural micro finance institutions to provide credit at some reasonable costs.       Key words: Barley farms, translog production function, technical efficiency, Welmera.

Environmental Efficiency Analysis with one Detrimental Input Variable through A Stochastic Frontier Analysis Approach (A Case Study of Shallot Farming System)

Sustainable agriculture having high complexity, especially related to the choice of using inputs that could potentially harm the environment or often called a detrimental input. In order to realize sustainable agriculture, the level of efficiency of the use of these inputs must be able to measure, especially from the aspect of environmental efficiency. The objective of this research in to analyze the environmental efficiency (EEnv) with a detrimental input variable namely the Nitrogen surplus in shallot farming through approach Stochastic Frontier Analysis (SFA). At the initial stage has been built translog stochastic frontier regression model consisting of the response variable namely the production of onion, five independent variables, namely land, seed, Phospor fertilizer, Kalium fertilizer, labor and pesticides, as well as one independent variable is a surplus of nitrogen as a detrimental input. Stochastic frontier translog regression models were built to explain some of the interactions between several independent variables affect the production of shallot. Some interactions are significant, namely seeds and pesticides, fertilizer P with a surplus of nitrogen, and the interaction between K fertilizer with nitrogen surplus. From the regression model can also be calculated value of elasticity, where the elasticity of independent variables namely seed is the highest, equal to 0.1687. Furthermore stochastic frontier translog model can be calculated value EEnv, the results show the value of EEnv still low at only at 0.2765. This may imply inefficient shallot farmers from the aspects of the environment, especially if associated with the use of nitrogen fertilizer. Although technically shallot farmers have achieved a level of technical efficiency (ET), which is indicated on the ET value of 0.9475.

MEASUREMENT OF TECHNICAL EFFICIENCY THAT INVOLVING FARMERS PREFERENCES TOWARDS RISK OF RICE FARMING IN MALANG (INDONESIA)

The aim of this research is to analyse the level of technical efficiency of rice farming by considering farmer preferences towards natural and technological risks. This research is conducted in selected regions in Malang Regency (Indonesia) with the consideration that farmers in selected areas can produce high productivity, but productivity growth fluctuates very sharply each year (within 13 years). Natural phenomenon that often appears as the risks of farming, such as, floods, droughts, and hurricanes. While, the application of technology is the part of the risks of farming, too, because farmers are not willing to adopt the technology which facilitated by the government. Rice farmers who used respondents are 305 people namely spread in seven selected regions in two seasons. The method used are a) Expected Utility of Money to measure the farmer preferences towards the risks and b) Stochastic Frontier Translog production function with Maximum Likelihood Estimation (MLE) approach to analyse the level of technical efficiency of farming. The results found that 77.7% of farmers have averter risk preferences, the level of technical efficiency obtained at 0.75 by pooling the data, and the influence of the preference of farmers to sources of technical inefficiency is -0622. Recommendation submitted is induced the technology with mentoring system and immediately implement the agricultural insurance.