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Title: Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri
Authors: Wu, Shunxiang
Prato, Anthony A.
Keywords: Cost efficiency
Missouri farms
scope economies
JEL Codes: Q12
Issue Date: 2006-12
Series/Report no.: JAAE
Abstract: This study investigates productive efficiency for a sample of Missouri crop-only (specialized) and integrated crop-livestock (diversified) farms using a cost frontier approach. Results suggest that significant cost inefficiency exists among sample farms. Lower cost efficiency in both types of farms was attributed to improper scale of operations and mis-allocation of inputs. On average, diversified farms were as technically and scale efficient as specialized farms. Lower allocative efficiency diluted gains in technical efficiency and resulted in greater cost inefficiency for diversified farms than for specialized farms. Technical efficiency was independent of farm size, whereas allocative, scale, and scope efficiencies were not.
Institution/Association: Journal of Agricultural and Applied Economics>Volume 38, Number 03, December 2006
Total Pages: 15
From Page: 539
To Page: 553
Collections:Volume 38, Number 03, December 2006

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