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A Nonparametric Analysis of Efficiency for a Sample of Kansas Beef Cow Farms

Published online by Cambridge University Press:  28 April 2015

Allen M. Featherstone ,
Michael R. Langemeier  and
Mohammad Ismet
Allen M. Featherstone
Affiliation:
Department of Agricultural Economics, Kansas State University
Michael R. Langemeier
Affiliation:
Department of Agricultural Economics, Kansas State University
Mohammad Ismet
Affiliation:
Indonesian Food Logistics Agency
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Abstract

Competitive pressures in the cow-calf sector increased in 1995 because of a decline of 27% in calf prices. Technical, allocative, and scale efficiency measures were used to examine the competitiveness of a sample of Kansas beef cow farms. On average, the farms were 78% technically efficient, 81% allocatively efficient, and 95% scale efficient. Enterprise profitability was correlated positively with the efficiency measures. Inefficiency was related to herd size and degree of specialization. Producers should focus on using capital, feed, and labor more efficiently rather than increasing their size. Increased concentration of the cow-calf sector will not result in large cost savings given the current technology.

Keywords

beef cowindustry structurenonparametric efficiency
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 29 , Issue 1 , July 1997 , pp. 175 - 184
Copyright
Copyright © Southern Agricultural Economics Association 1997

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