Daniel Solís

Determinants of Technical Efficiency Among Dairy Farms in Wisconsin

The US dairy sector is facing structural changes including a geographical shift in dairy production and a tendency toward the implementation of more intensive production systems. These changes might significantly affect farm efficiency, profitability, and the long-term economic sustainability of the dairy sector, especially in more traditional dairy production areas. Consequently, the goal of this study was to examine the effect of practices commonly used by dairy farmers and the effect of intensification on the performance of the farms. We used a sample of 273 Wisconsin dairy farms to estimate a stochastic production frontier simultaneously with a technical inefficiency model. The empirical analysis showed that at a commercial level the administration of bovine somatotropin hormone to lactating cows increased milk production. In addition, we found that production exhibits constant returns to scale and that farm efficiency is positively related to farm intensification, the level of contribution of family labor in the farm activities, the use of a total mixed ration feeding system, and milking frequency.

Does Intensification Improve the Economic Efficiency of Dairy Farms

In recent decades, the dairy sector has shown a global tendency toward intensification. This structural change may have significant effects on farm efficiency and, consequently, on the economic results of the farms. The goal of this study was to offer an empirical analysis of the effect of intensification on dairy farming. To do this, we first classified a sample of dairy farms according to their level of intensification by using a cluster analysis. We then estimated independent stochastic cost frontiers for each group of farms to calculate their levels of efficiency. The methodology used in this study allowed for the presence of different technologies within a sample, which is a methodological issue frequently avoided in the agricultural economics literature. The empirical results showed that intensive farms were closer to their cost frontier than extensive ones, suggesting a positive relationship between intensification and efficiency.

Soil conservation and technical efficiency among hillside farmers in Central America: a switching regression model*

The main objective of this paper is to evaluate and analyze technical efficiency (TE) levels for hillside farmers under different levels of adoption of soil conservation in El Salvador and Honduras. A switching regression model is implemented to examine potential selectivity bias for high and low level adopters, and separate stochastic production frontiers, corrected for selectivity bias, are estimated for each group. The main results indicate that households with above-average adoption show statistically higher average TE than those with lower adoption. Households with higher adoption have smaller farms and display the highest partial output elasticity for land. Constraints in the land and credit markets are likely explanations for these differences. In addition, all estimated models show that TE has a positive and significant association with education and extension.

Assessing the value of climate information and forecasts for the agricultural sector in the Southeastern United States: multi-output stochastic frontier approach

A multi-output/input stochastic distance frontier model is used to analyze the effect of interannual climatic variability on agricultural production and to assess the impact of climate forecasts on the economic performance of this sector in the Southeastern United States. The results show that the omission of climatic conditions when estimating regional agricultural production models could lead to biased technical efficiency (TE) estimates. This climate bias may significantly affect the effectiveness of rural development policies based on regional economic performance comparisons. We also found that seasonal rainfall and temperature forecasts have a positive effect on economic performance of agriculture. However, the effectiveness of climate forecasts on improving TE is sensitive to the type of climate index used. Policy implications stemming from the results are also presented.

Economic and Financial Sustainability of Private Agricultural Extension in El Salvador

ABSTRACT Since the beginning of the 1980s, El Salvador has shown a dramatic decline in the public funding for agricultural extension. This process follows a worldwide tendency to reduce the public sector involvement in agriculture. To respond to the reduction in public expenditure in extension programs, a privatization process has been proposed as a feasible alternative for agricultural development. The main purpose of this paper is to evaluate the sustainability of the Farm Management Center (FMC) model as a specific private agricultural extension option in El Salvador. To pursue this objective, an ex ante economic and financial cost-benefit analysis based on a multiperiod linear programming model is performed. The general results of this study suggest that a combination of better farm prices (paid and received), reallocation of resources, and crop diversification, which would be promoted by an FMC, can lead to an increase in farm level profits that is sufficient to cover the operation of a private farm management center while also generating net gains in household income. It is important to point out that public support is crucial as an initial injection to get the FMCs started. Moreover, this public support could help to break the inertia typically shown by peasant farmers to get involved in new endeavors.

Measuring the initial economic effects of hurricanes on commercial fish production: the US Gulf of Mexico grouper (Serranidae) fishery

A stochastic production frontier was used to measure the initial (i.e., bi-weekly) economic effects of hurricanes on commercial grouper (Serranidae) production in the Exclusive Economic Zone of the United States Gulf of Mexico from 2005 to 2009. We estimated the economic effects of productivity losses associated with specific hurricanes on the commercial grouper fleet. We also calculated the economic effects due to productivity losses during an entire hurricane season at the regional level. The empirical model controls for input levels as well as other factors affecting production to isolate the initial economic effect caused by hurricanes from other non-weather-related factors. The empirical results revealed that hurricanes striking the Gulf of Mexico coastline from 2005 to 2009 had a negative effect on the production of the commercial grouper fleet. The results also demonstrated the relative importance of inputs and regulations on fish production.

Bioeconomic modelling and salmon aquaculture: an overview of the literature

Bioeconomic models can be used to assist producers and decision-makers in identifying optimal production system designs, operation management strategies, and alternative development and policy approaches. This paper reviews the literature on bioeconomic modelling in aquaculture since 1993 and builds on an earlier article by Leung (1994) which examines this literature for the 1974-1993 period. In order to identify the papers reviewed in the present study, a thorough online search in various databases and some specific journals was conducted. Observations on the general state-of-the-art of bioeconomic modelling in aquaculture are discerned based on a comparative analysis of work in the field, with specific reference to salmon aquaculture. Implications for salmon aquaculture systems in Chile and elsewhere are discussed.

Economic impact of milk production in the State of New Mexico.

The goal of this study was to quantify the economic role of dairy farming in New Mexico and to identify its linkages with allied industries in terms of income, value added, and employment impacts. An input-output model was used to estimate the direct, indirect, and induced impacts of the dairy farm industry on the economy of New Mexico. The results showed that in 2005, New Mexicos dairy farm industry had a total economic impact of

Citrus Greening Disease (Huanglongbing) in Florida: Economic Impact, Management and the Potential for Biological Control

1.98 billion and accounted for 14,313 jobs. Therefore, dairy farming in New Mexico had an output multiplier (income) of 1.92, a labor income multiplier of

Technical efficiency and marketing channels among small-scale farmers: evidence for raspberry production in Chile

248 thousand/