EFFICIENCY ANALYSIS IN DIFFERENT TYPOLOGIES OF FARMING IN ITALIAN FADN DATASET

Authors

  • Nicola Galluzzo, PhD Director of Association of Geographic and Economic Studies in Rural Areas (ASGEAR), Rieti

DOI:

https://doi.org/10.5937/ekoPolj1702451G

Keywords:

Common Agricultural Policy, typologies of farming, allocative effciency, economic effciency, Italy.

Abstract

Italian farms are characterized by modest plots of usable agricultural area scattered in many rural villages. The purpose of this analysis was to assess by a quantitative method technical, economic and allocative effciency in Italian farms over the time 2004- 2013 in function of different typologies of farms (TF) and their own farm productive specialization. Hence, the main question of the paper has been to estimate if the farms specialization in cultivating crops or in breeding livestock has influenced the efficiency of Italian farms. Findings have pointed out an important impact of fnancial subsidies allocated by the Common Agricultural Policy on the level of technical and economic effciency; outcomes have also emphasized as a cut in costs of some inputs such as fertilizers and crops protection is essential in increasing effciency in Italian farms.

Downloads

Download data is not yet available.

References

1. Andersen, P., Petersen, N. (1993): A procedure for ranking effcient units in data envelopment analysis, Management Science, Vol. 39, No. 10, pp. 1261-1264.
2. Bakucs, L.Z., Latruffe, L., Fertő, I., Fogarasi, J. (2010): The impact of EU accession on farms technical effciency in Hungary, Post-communist economies, Vol. 22, No. 2, pp. 165-175.
3. Battese, G. E. (1992): Frontier production functions and technical effciency: a survey of empirical applications in agricultural economics, Agricultural Economics. No. 7, pp. 185-208.
4. Bhagavath, V. (2009): Technical Effciency Measurement by Data Envelopment Analysis: An Application in Transportation, Alliance Journal of Business Research (available at: www.ajbr.org).
5. Bielik, P., Rajcaniova, M. (2004): Scale effciency of agricultural enterprises in Slovakia, Agric. Econ. Czech, Vol. 50, No. 8, pp. 331-335.
6. Bojnec, S., Latruffe, L. (2007): Farm size and effciency: the case of Slovenia, In 100th Jubilee Seminar of European Association of Agricultural Economists "Development of Agriculture and Rural Areas in Central and Eastern Europe, (available at: https://www.researchgate.net/publication/228653030).
7. Bojnec, Š., Latruffe, L. (2008): Measures of farm business effciency, Industrial Management & Data Systems, Vol. 108, No. 2, pp. 258-270.
8. Bojnec, Š., Latruffe, L. (2009): Determinants of technical effciency of Slovenian farms, Post-Communist Economies, Vol. 21, No. 1, pp. 117-124.
9. Bravo-Ureta, B.E., Pinheiro, A.E. (1993): Effciency analysis of developing country agriculture: A review of the frontier function literature, Agric. Resour. Econ. Rev., Vol. 22, pp. 88-101.
10.Bravo-Ureta, B.E., Solís, D., Moreira, V.H., Maripani, J.F., Thiam, A., Rivas, T.E., (2007): Technical effciency 2007. Technical effciency in farming: A metaregression analysis, J. Prod. Anal., Vol. 27, pp. 57-72.
11.Camelia, B., Vasile, B. (2016): The economic farm size and sustainable value disparities between Romania and the EU states, Annals-Economy Series, No. 1, pp. 50-57.
12.Cesaro, L., Marongiu, S., Zanoli, A., (2010): Analisi sulleffcienza e sui costi di produzione delle aziende zootecniche da latte in Italia. Confronto tra pianura e montagna, Atti del XLVII Convegno studi Sidea Lagricoltura oltre la crisi, Sidea.
13.Cesaro, L., Marongiu, S., Arfni, F., Donati, M., Capelli, M.G. (2009): Methodology Application of DEA. Farm Accounting Cost Estimation and Policy Analysis of European Agriculture, FACEPA Deliverable No. D5.1.3 - April 2009, (available at: https://pdfs.semanticscholar.org/6e4e/2884132f2ea0304bbba50c1abef00948adc5.pdf)
14.Charnes, A., Cooper, W.W. (1962): Programming with linear fractional functionals, Naval Research Logistics Quarterly, Vol. 9, No. 3-4, pp. 181-186.
15.Charnes, A., Cooper, W.W., Rhodes, E. (1978): Measuring the Effciency of Decision Making Units, European Journal of Operational Research, Vol. 2, No. 6, pp. 429- 444.
16.Chavas, J.P., Aliber, M. (1993): An analysis of economic effciency in agriculture:a nonparametric approach, Journal of Agricultural and Resource Economics, Vol.18, No. 1, pp. 1-16.
17.Coelli, T. (1996): Recent developments in frontier modelling and efficiency measurement, Australian Journal of agricultural economics, Vol. 39, No. 3, pp. 219-245.
18.Curtiss, J. (2000): Technical Effciency and Competitiveness of the Czech agricultural Sector in late Transition - The Case of Crop Production, Paper presented at the KATO Symposium, Berlin, 2-4 November 2000, (available at www.academia.edu/275094/).
19.Davidova, S., Latruffe, L. (2007): Relationships between technical efficiency and fnancial management for Czech Republic farms, Journal of Agricultural Economics, Vol. 58, No. 2, pp. 269-288.
20.Doyle, J., Green, R. (1994): Effciency and cross-effciency in DEA: derivations. meanings and uses, Journal of Operational Research Society, Vol. 45, No. 5, pp.567-578.
21.European Commission Agriculture and Rural Development (2014): Concept of FADN. (available at www.ec.europa.eu/agriculture/rica/concept_en.cfm).
22.Farrell, M.O. (1957): The measurement of productive effciency, Journal of Royal Statistical Society, Vol. 120, pp. 253-281.
23.Festuccia, A. (2013): In Italia e Romania la metà delle aziende agricole UE, Pianeta PSR, 17 (available at www.pianetapsr.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/764)
24.Galluzzo, N. (2016): An analysis of the effciency in a sample of small Italian farms part of the FADN dataset, Agric. Econ.–Czech, Vol. 62, pp. 62-70.
25.Galluzzo, N. (2015a): Technical and economic effciency analysis on Italian smallholder family farms using Farm Accountancy Data Network dataset, Studies in Agricultural Economics, Vol. 117, No. 1, pp. 35-42.
26.Galluzzo, N. (2015b): Analysis of impact of rural development subsides on cropping specialization in Bulgaria and Romania using FADN data, 150th EAAE Seminar "The spatial dimension in analysing the linkages between agriculture, rural development and the environment", Edinburgh, UK, October 22-23 2015, (available at http://ageconsearch.umn.edu).
27.Galluzzo, N. (2014): The evolution of Italian farms and the role of subsidies paid by the European Union for rural development, Romanian Review of Regional Studies, Vol. 10, No. 1, pp. 79-88.
28.Galluzzo, N. (2013): Farm dimension and effciency in Italian agriculture: a quantitative approach, American Journal of Rural Development, Vol. 1, No. 2, pp.26-32.
29.Gorton, M., Davidova, S. (2004): Farm productivity and effciency in the CEE applicant countries: a synthesis of results, Agricultural economics, Vol. 30, No. 1, pp. 1-16.
30.Greco, M., Di Cristofaro, E. (2011): Il settore agricolo attraverso i dati provvisori del VI Censimento generale dellagricoltura, Agriregionieuropa: 7(26), (available at http://agriregionieuropa.univpm.it/content/article/31/26/il-settore-agricoloattraverso-i-dati-provvisori-del-6deg-censimento-generale).
31.Guyomard, H., Latruffe, L., Le Mouël, C. (2006): Technical effciency, technical progress and productivity change in French agriculture: Do subsidies and farms size matter?. In: Proceeding of 96th EAAE Seminar, Tänikon, Switzerland, (available at: https://www.researchgate.net/publication/228378368).
32.Hadad, Y., Friedman, L., Hanani, M.Z. (2007): Measuring effciency of restaurants using the data envelopment analysis methodology, Computer modelling and New Technologies, Vol. 11, No. 4, pp. 25-35.
33.Istat (2012): Caratteristiche strutturali delle aziende agricole. (available http://www.istat.it/it/files/2011/03/142512_Vol_VI_Cens_Agricoltura_INT_CD_1_Trimboxes_ipp.pdf)
34.Latruffe L., Nauges, C. (2014): Technical effciency and conversion to organic farming: the case of France, European Review of Agricultural Economics, Vol. 41, No. 2, pp. 227-253.
35.Latruffe, L., Fogarasi, J., Desjeux, Y. (2012): Effciency, productivity and technology comparison for farms in Central and Western Europe: The case of feld crop and dairy farming in Hungary and France. Economic Systems, Vol. 36, No. 2, pp. 264-278.
36.Latruffe, L. (2010): Competitiveness, productivity and effciency in the agricultural and agri-food sectors, OECD Food, Agriculture and Fisheries Working Papers, No.30, OECD Publishing, (available at: http://dx.doi.org/10.1787/5km91nkdt6d6-en)
37.Latruffe, L., Balcombe, K., Davidova, S., Zawalinska, K. (2005): Technical and scale effciency of crop and livestock farms in Poland: does specialization matter?, Agricultural economics, Vol. 32, No. 3, pp. 281-296.
38.Latruffe, L., Balcombe, K., Davidova, S., Zawalinska, K. (2004): Determinants of technical effciency of crop and livestock farms in Poland, Applied economics, Vol.36, No. 12, pp. 1255-1263.
39.Morrison Paul, C.J., Nehring, R., Banker, D. (2004): Productivity, Economies, and Effciency in US Agriculture: A look at contracts, American Journal of Agricultural Economics, Vol. 86, No. 5, pp. 1308-1314.
40.Papadas, C.T. (1991): Technical effciency and farm size: a non-parametric frontier analysis. In: (ed) University of Minnesota. Institute of agriculture. forestry and home economics. Staff Paper series P91-53 (available at www.purl.umn.edu/13679).
41.Shucksmith, M., Chapman, P. (1998): Rural development and social exclusion, Sociologia Ruralis, Vol. 38, No. 2, pp. 225-242.
42.Stockdale, A. (2004): Rural Out-Migration: Community Consequences and Individual Migrant Experiences, Sociologia Ruralis, Vol. 44, No. 2, pp. 167-194.
43.Stockdale, A. (2006): Migration: Pre-requisite for rural economic regeneration? Journal of Rural Studies, Vol. 22, No. 3, pp. 354-366.
44.Van Der Ploeg, J.D., Renting, H. (2000): Impact and potential: a comparative review of European rural development practices, Sociologia ruralis, Vol. 40, No. 4, pp. 529-543.
45.Van der Ploeg, J.D., Renting, H., Brunori, G., Knickel, K., Mannion, J., Marsden, T., De Roest, K, Sevilla-Guzman, E., Ventura, F. (2000): Rural development: from practices and policies towards theory, Sociologia ruralis, Vol. 40, No. 4, pp. 391-408.
46.Van der Ploeg, J.D., Long, A., Banks, J. (2002): Living Countrysides: Rural Development Processes in Europe: the State of the Art, ISBN 9054391170, Elsevier EBI, Doetinchem.
47.Van Zyl, J., Miller, B.M. and Parker, A. (1996): Agrarian structure in Poland. The myth of large-farm superiority, Policy research working paper 1596. Washington: The World Bank, pp. 1-52.
48.Veveris A., Leimane I., Krieviņa A., (2007): Effciency analysis of agricultural sector in Latria compared to other EU countries, based on FADN data, Economic science for rural development, Vol. 12, pp. 13-19.

Downloads

Published

2017-06-30

How to Cite

Galluzzo, N. (2017). EFFICIENCY ANALYSIS IN DIFFERENT TYPOLOGIES OF FARMING IN ITALIAN FADN DATASET. Ekonomika Poljoprivrede, 64(2), 451–465. https://doi.org/10.5937/ekoPolj1702451G

Issue

Section

Original scientific papers