Technology heterogeneity and policy change in farm-level efficiency analysis: an application to the Irish beef sector

Martinez-Cillero, Maria; Thorne, Fiona; Wallace, Michael; Breen, James

doi:10.1093/erae/jby028

Cited by 30 publications

(19 citation statements)

References 24 publications

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“…The study found that direct payments still exert a significant impact on farms' ability in converting inputs to outputs. In Ireland, Martinez Cillero et al [48,49] found that both coupled and decoupled payments had a positive significant effect on the efficiency of beef farms. Other studies that reported a positive impact of subsidies' impact include Nikola et al [50] in Macedonia, Lehtonen and Niemi [51] in Finland, and Galluzzo [52] in Ireland.…”

Section: Previous Studiesmentioning

confidence: 99%

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

Olagunju

Patton²,

Feng³

2020

Sustainability

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The production stimulating impact of agricultural subsidies has been a well-debated topic in agricultural policy analysis for some decades. In light of the EU reform of the Common Agricultural Policy (CAP) in year 2005 in which agricultural subsidies were decoupled from current production decisions and the modification to this payment in 2015, this study investigates the impact of decoupled payments under these two reforms on livestock production in Northern Ireland. The study uses a farm-level panel dataset covering 2008–2016 period and employs an instrumental variable fixed effect model to control for relevant sources of endogeneity bias. According to the empirical results, the production impacts of decoupled payments were positive and significant but with differential impacts across livestock production sectors, suggesting that decoupled payments still maintain a significant effect on agricultural production and provide an indication of the supply response to changes in decoupled payments.

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Section: Previous Studiesmentioning

confidence: 99%

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

Olagunju

Patton²,

Feng³

2020

Sustainability

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“…In relation to labor, Newman and Matthews (2007) and Martinez Cillero et al. (2019) also report non‐significant and negative labor coefficients (albeit for cattle farms) and explain this with underemployment of labor. A more plausible explanation for the non‐significant labor effect for dairy farms may be that labor measurement is capped at 1800 h per person per annum, but many dairy farmers may work considerably more.…”

Section: Resultsmentioning

confidence: 99%

EU milk quota abolition, dairy expansion, and greenhouse gas emissions

Läpple

Carter

Buckley

2021

Agricultural Economics

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This article explores therelationship among farm‐level productivity growth, scale, and greenhouse gas (GHG) emission intensity during a time period of significant agricultural policy change affecting Ireland's dairy industry. Specifically, we focus on the 2015 EU milk quota abolition, which initiated major dairy expansion in Ireland. We use a representative sample of Irish dairy farms from 2000 to 2017, that includes data on farm specific GHG emissions. Based on this detailed farm level panel data set, we estimate productivity with a control function approach. We then apply fixed effects and dynamic panel data methods to explore the implications of productivity and scale on GHG emission intensity. Our findings indicate that increased productivity is negatively associated with GHG emission intensity, which changes with distinct milk quota abolition phases. Overall, our findings are important for understanding the relationship between policy reforms and GHG emissions in agriculture, and how to improve agricultural mitigation strategies.

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“…Alvarez and del Corral [46] criticized the popular trend in the literature which assumes homogenous technology for all the producers, and applied a latent class model approach to empirically prove that such simplified assumptions result in biased estimates. Similarly, Cillero applied a latent class model to investigate the consequences of differences in production technology on Irish beef farms [47], whereas few studies have applied random parameter models [48,49]. A very similar one to ours is the work of Baráth and Fertő [50], who applied O'Donnell's FPI index framework and estimated TFP parameters and convergence to European agriculture.…”

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confidence: 76%

Five Decades of Productivity and Efficiency Changes in World Agriculture (1969–2013)

2020

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The present study applied the Färe–Primont index approach to estimate the total factor productivity (TFP) growth of world agriculture, covering the period 1969–2013. Overall, the world agricultural TFP grew at a rate of 0.44% p.a. This growth was mainly contributed to by technological progress and mix efficiency changes, while the contributions of technical efficiency and scale efficiency changes were negligible. TFP growth varied across regions, with South Asia at the top of the list (1.05% p.a.), and East Asia and the Pacific (0.18% p.a.) at the bottom. TFP components exerted differential influences amongst regions. For instance, mix efficiency played a dominant role in Sub-Saharan Africa, the Middle East and North Africa, whereas it was technical efficiency change in Latin America and the Caribbean region. The paper argues for region specific policy interventions emphasizing technical progress through investment in R&D and price and non-price interventions to improve economies of scope and scale of operation in the agricultural sector.

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Technology heterogeneity and policy change in farm-level efficiency analysis: an application to the Irish beef sector

Cited by 30 publications

References 24 publications

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

EU milk quota abolition, dairy expansion, and greenhouse gas emissions

Five Decades of Productivity and Efficiency Changes in World Agriculture (1969–2013)

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