A structural change analysis of the cost efficiency of farms in Scotland 1989-2008

One of the aims of the reform of the Common Agricultural Policy (CAP) is to increase the competitiveness of farmers through increasing their exposure to markets. An aspect of competitiveness is the gains in economic efficiency. Thus, the purpose of this paper is to estimate indicators of farm efficiency for the period 1989 to 2008 by farm type and to analyse what the effect on efficiency of changes in the CAP has been. In terms of the methodology, the information used comes from the Scottish Farm Account Scheme (FAS) survey, which allows us to assemble panel dataset and to construct cost efficiency indicators. The results indicate while mixed farms and lowland farms have maintain their levels of efficiency. LFA farms have seen their efficiency reduced since approximately 2004 or 2005 (especially LFA sheep farm specialists). Also, the analysis shows that there seems to be an increase in the dispersion of farmers in terms of efficiency for some farm types in periods of change in agricultural policy.

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 Record created 2017-04-01, last modified 2020-10-28

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