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Farm and Business - The Journal of the Caribbean Agro-Economic Society >
Volume 07, Number 1, June 2007 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/36807
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| Title: | An Estimation of the Efficient Size of Sugarcane Enterprises for Farmers in Trinidad |
| Authors: | Palmer, Donald W.
Pemberton, Carlisle A. |
| Editors: | Pemberton, Carlisle A.
Ragbir, Sarojini
Badrie, Neela |
| Editors (Email): | Pemberton, Carlisle A. (carlisle.pemberton@sta.uwi.edu)
Ragbir, Sarojini (sarojini.ragbir@sta.uwi.edu)
Badrie, Neela (neela.badrie@sta.uwi.edu) |
| Keywords: | Cost function
cost elasticity
efficient size
sugar-cane
Trinidad |
| Issue Date: | 2007 |
| Abstract: | This research paper provides an estimation of the efficient size of operation for sugarcane farmers in Trinidad. The estimates were based on a sample of two hundred and twenty-seven farmers selected from a cost of sugarcane production survey. To identify the efficient size of operation the ordinary least square estimation technique was used. The identification of the efficient size of operation allowed a test of the hypothesis that the minimum point on the long run average cost curve was significantly greater than the average enterprise size of six acres.
The long run total cost curve was estimated and the cubic functional form provided the best fit based on both the adjusted R2 and the result from the Wald test. The results of the estimation process indicated that the optimal size was 32 acres of sugarcane and that 98% of the farmers operated at less than this size. |
| URI: | http://purl.umn.edu/36807 |
| Institution/Association: | Farm and Business - The Journal of the Caribbean Agro-Economic Society>Volume 7, Number 1, June 2007 |
| From Page: | 1 |
| To Page: | 16 |
| Collections: | Volume 07, Number 1, June 2007
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Files in This Item:
| File |
Description |
Size | Format |
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| Farm and Business 2007 7 1 1-16.pdf | Main paper | 211Kb | PDF | View/Open |
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