Performance of Finnish dairy farms and its determinants: A comparison of parametric, semiparametric, and nonparametric methods

Sipiläinen, Timo; Kortelainen, Mika; Ovaska, Sami; Ryhänen, Matti

doi:10.1080/16507541.2010.481901

Cited by 1 publication

(2 citation statements)

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“…The findings to date consistently show that farms exposed to environmental constraints are less efficient (McCloud and Kumbhakar 2008, Sipiläinen et al 2009, Kumbhakar and Lien 2010, Manevska-Tasevska et al 2014). An unavoidable question in this regard is how farms operating in environmentally sensitive regions and/or applying output-reducing farm management practices fare under such conditions.…”

Section: Introductionmentioning

confidence: 81%

“…Hypothesis 2 (H2): Without farm support, farming in areas with environmental/infrastructural constraints and extensive farming practices (such as organic farming and a low level of specialisation, livestock density, capital intensity, pasture availability) is less efficient than farming in regions with good agricultural potential and intensive farming conditions (such as in Sipiläinen et al 2009, Manevska-Tasevska et al 2014). …”

Section: Hypothesesmentioning

confidence: 99%

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Pure and compensated efficiency of Swedish dairy farms

Manevska‐Tasevska

Rabinowicz

Surry

2016

AFSci

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The compensatory effect of environmental subsidies for agri-environmental output constraints was evaluated through a comparative analysis observing the ‘pure’ efficiency, as a benchmark for prevailing production conditions, and the ‘compensated’ efficiency, as a proxy indicator of the compensation. An unbalanced data panel covering 3578 Swedish dairy farms in the period 2002-2012 was used. The analysis showed that in the study period, environmental farm support decreased the differences in farm revenue generated by agri-environmental output constraints in Sweden. However, the environmental support distribution did not succeed in meeting regional needs, so difficulties in farmers’ ability to generate output in southern and central forest and valley areas of Sweden were visible. Furthermore, the environmental agricultural support had only a partial subsidisation effect on ‘green’ farm management practices, with full compensation being achieved for organic and capital-extensive farming, whereas low livestock density farming was not sufficiently compensated. This analysis reveals incentives with policy implications for farm economic performance and provides direct input to future policy recommendations for environmental support allocation.

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Section: Introductionmentioning

confidence: 81%

Section: Hypothesesmentioning

confidence: 99%