The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability Rice Farms

This paper estimates technical efficiency on rice farms, following a translog stochastic production frontier (SPF) approach and compares the relative performance of farm operator households with and without off-farm wages and salaries. We use 2000, 2006 and 2013 USDA data for rice producing states-identifying different performance measures. Previous studies suggest that off-farm work influences economic performance—by “improving” managerial performance. We find that off-farm income generally boosts scale and technical efficiency on smaller, mid-size and larger operations, and is also consistent with higher farm and household returns. We also find that the number of hours worked off-farm by the operator contributes to a higher technical efficiency on larger typologies.

Issue Date:
Jan 15 2015
Publication Type:
Conference Paper/ Presentation
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This study is based on ARMS phase II and COP data supplied by ERS

 Record created 2017-04-01, last modified 2018-01-22

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