Management Theory and Studies for Rural Business and Infrastructure Development, Volume 30

Family Farm Efficiency Across Farming Types in Lithuania and its Managerial Implications – Data Envelopment Analysis

Tomas Baležentis, Irena Kriščiukaitienė
Lithuanian Institute of Agrarian Economics

Abstract

This study aims at analyzing dynamics of productive efficiency across different farming types in Lithuania. Furthermore possible managerial improvements leading to increase in efficiency are discussed. The research covers years 2003–2010 and is based on the aggregate Farm Accountancy Data Network (FADN) data. The data envelopment analysis and statistical analysis were applied for the research. The analysis showed that efficiency of an average Lithuanian farm fluctuated between 76.5% and 92.2% throughout 2003–2010. In addition, it had been somehow subdued during 2005–2007. Mixed crop and mixed livestock (mainly grazing) farming was peculiar with the highest technical efficiency estimate for the period of 2003–2010. Slack analysis revealed that low land productivity, returns on assets, and intermediate consumption productivity are the most important sources of the inefficiency, in that order.

Keyword(s): efficiency; productivity; farming types; Lithuania; data envelopment analysis


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.