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Economic Evaluation of Yield-Increasing Wheat Seeds Using a Distance Function Approach

  • Philipp Wree, Johannes Sauer and Stefan Wimmer
Abstract

New wheat-breeding techniques, such as hybridization and genetic modification, show increasing yield potential. This study involves estimating multi-output multi-input production technology by stochastic frontier techniques to evaluate the economic value of this yield potential. An input-oriented distance function is formulated and applied to European Farm Accountancy Data of 23 European countries. Based on the analysis, an average shadow value is derived for the increase in the marginal yield of wheat that corresponded to 18.87 €/ha. Further, technical change, technical efficiency, and returns to scale are measured for different European regions.

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Copyright
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Corresponding author
Correspondence: Philipp Wree ■ Department of Agricultural Production and Resource EconomicsTechnical University of Munich, Alte Akademie 1285350 FreisingGermany ■ Phone: +49 8161 71-5151, Email: philipp.wree@tum.de
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Agricultural and Resource Economics Review
  • ISSN: 1068-2805
  • EISSN: 2372-2614
  • URL: /core/journals/agricultural-and-resource-economics-review
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