Family farm efficiency across farming types in Lithuania and its managerial implications - data envelopment anglysis

2012-03-27
Family farm efficiency across farming types in Lithuania and its managerial implications - data envelopment anglysis

This study aims at analyzing dynamics of productive efficiency across different farming types in Lithuania. Furthermore possible managerial improvements leading to increase in efficiency are discussed. The research covers years 2003-2010 and is based on the aggregate Farm Accountancy Data Network (FADN) data. The data envelopment analysis and statistical analysis were appliek for the research. The analysis showed that efficiency of an average Lithuanian farm fluctuated between 76.5% and 92.2% throughout 2003-2010. In addition, it had been somehow subdued during 2005-2007. Mixed crop and mixed livestock (mainly grazing) farming was peculiar with the highest technical efficiency estimate for the period of 2003-2010. Slack analysis revealed that low land productivity, returns on assets, and intermediate consumption productivity are the most important sources of the inefficiency, in that order.

Key words: Efficiency, Productivity, Farming types, Data envelopment analysis.

JEL codes: C440, C610, Q100, Q130.

Baležentis, T.; Kriščiukaitienė, I. Family farm efficiency across farming types in Lithuania and its managerial implications - data envelopment anglysis // Vadybos mokslas ir studijos - kaimo verslų ir jų infrastruktūros plėtrai = Management theory and studies for rural business and infrastructure development / Aleksandro Stulginskio universitetas. Lietuvos agrarinės ekonomikos institutas. 2012, nr. 1 (30), p. 22-30, ISSN 1822-6760 (EBSCO host: Business Source Complete; Ulrich’s; IndexCopernicus).