Efficiency of Estonian grain farms in 2000 2004

Abstract

The aim of this study is to analyse the efficiency of Estonian grain farms after Estonia's transition to a market economy and during the accession period to the European Union (EU). The non-parametric method Data Envelopment Analysis (DEA) was used to estimate the total technical, pure technical and scale efficiency of Estonian grain farms in 2000-2004. Mean total technical efficiency varied from 0.70 to 0.78. Of the grain farms 62% are operating under increasing returns to scale. Solely based on the DEA model it is not possible to determine optimum farm scale and the range of Estonian farm sizes operating efficiently is extensive. The most pure technically efficient farms were the smallest and the largest but the productivity of small farms is low compared to larger farms because of their small scale. Therefore, they are the least competitive. Since pre-accession period to the EU, large input slacks of capital have replaced the former excessive use of labour and land. This raises the question about the effects on efficiency of the EU's investment support schemes in new member states.

Assessment of Greenhouse Gas Emissions in Winter Wheat Farms Using Data Envelopment Analysis Approach

“…Based on our calculations, both in medium and large farms, 16% of inputs could be saved by improving efficiency of ineffective farms. In Estonian grain farms, the average TE varied from 0.70 to 0.78 [19]. Based on the literature, the technical efficiency scores of 0.89 for soybean farms [12], 0.80 and 0.71 for rice planted in spring and summer [20], and 0.78 for apple producers [21] were reported.…”

Productivity of Estonian dairy farms decline after the accession to the European Union

“…A frequently debated question in agricultural economics is optimal farm size. Most of studies reveal that it is not possible to determine the optimal farm size purely based on the efficiency and productivity indices since efficiently operating farms may range widely in size (Førsund and hjalmarsson 2004;Vasiliev et al 2008). in the current study, the innovators group had the largest herd (farm) size and the most efficient land use, but according to regression estimates both these factors were insignificant.…”

“…The rapid increase in investments was fostered already by the support schemes (SAPArD program) in the pre-accession period and continued after the accession to the EU. The tendency that a fast increase in investments is not followed by the efficiency improvement has also been evident for Estonian cereal farms (Vasiliev et al 2008). Latruffe et al (2005), using the example of Polish farms, argued that subsidized investments might stimulate purchase of technology irrespective of farm size.…”

“…Several studies have analyzed farm productivity and efficiency in the cEEcs (i.e. Mathijs and Swinnen 2001;Mathijs and Vranken 2001;Brümmer et al 2002;gorton and Davidova 2004;Latruffe et al 2005Latruffe et al , 2008, but an analysis of the Baltic countries is still rare (Vasiliev et al 2008;Luik et al 2009). The previous studies mainly cover the period prior to the accession to the European Union (EU).…”

Returns to scale in the Lithuanian family farms: A quantitative approach

“…La truffe et al (2005) focused on the Polish farms while analysing the technical and scale efficien cies. Vasiliev et al (2008) conducted a similar analysis on the Estonian grain farms.…”