The Efficiency of Labor Input in the Tree Nut Growers Industry: A Stochastic Frontier Production Approach Study in Butte County, California

The U.S. government recruits immigrant workers through the H-2A program as a short-term solution to the agricultural sectors’ labor shortage problem. Although the sector insists hiring immigrant workers is essential for their survival, history has proven the socio-economic cost for doing so is enormous. This paper aims to investigate the contribution of labor to agricultural production efficiency. A discussion of marginal rate of technical substitution, economies of scale, and economies of scope will also be included. The stochastic production frontier regression approach was applied to input/output data collected from a survey of tree nut growers in Butte County, California. Results indicate the labor input is not significant in deciding farm production efficiency. Instead of attempting to increase short-term labor, producers’ and policy makers’ efforts should be directed toward improving the logistics of farm management and the quality of labor, thus more efficiently utilizing available resources.


Issue Date:
2010
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/56335
PURL Identifier:
http://purl.umn.edu/56335
Total Pages:
21
JEL Codes:
Q120; J240; D240




 Record created 2017-04-01, last modified 2019-08-26

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