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Abstract

The irrigation programs started in the late 60’s were chiefly responsible for the impressive development occurred in the Petrolina/Juazeiro areas. Along with irrigation, came some agricultural enterprises that had been previously dedicated to other economic activities such as extensive cattle production. The main hypothesis of this study is that modern technology used in irrigation, combined with input usage, allow for a production level near or at the production frontier. Preliminary studies concluded that there is heterogeneity among enterprises, where similar technological packages are used and fruit production is the dominant production. Therefore, this study analyzes technical efficiency of agricultural enterprises in the studied area using a Translog function model to attain an efficient frontier. Results show that the model has significant efficiency scores. The comparative analysis among main irrigation areas shows that most of the efficient firms are located in the government delimited irrigation areas of Nilo Coelho and Maniçoba or outside delimited irrigation areas.

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