Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact ineffici...

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Bibliographic Details
Published in:Journal of agricultural and applied economics 2006-04, Vol.38 (1), p.213-224
Main Authors: Nadolnyak, Denis A., Fletcher, Stanley M., Hartarska, Valentina M.
Format: Article
Language:English
Subjects:
2002 Farm Act
agricultural economics
Agriculture
D61
economic analysis
economic impact
Efficiency
Exports
Free trade
International trade
Marketing
peanut production
Peanuts
price fixing
Prices
production costs
Profits
Q12
Q15
Q18
questionnaires
stochastic cost frontier analysis
supply balance
supply management policies
Trade agreements
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Summary:In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota's transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator's education and age, were also important for efficiency.
ISSN:1074-0708
2056-7405
1074-0708
DOI:10.1017/S1074070800022173