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The Effect of Land Fragmentation on the Technical Inefficiency of Dairy Farms
Author(s) -
Bradfield Tracy,
Butler Robert,
Dillon Emma,
Hennessy Thia,
Kilgarriff Paul
Publication year - 2021
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/1477-9552.12413
Subject(s) - inefficiency , incentive , fragmentation (computing) , frontier , business , agricultural economics , agriculture , production (economics) , natural resource economics , agricultural land , land consolidation , economics , geography , microeconomics , computer science , archaeology , operating system
Abstract Exploiting the link between land identification and farm accountancy data, we use a uniquely detailed database to conduct a robust analysis of land fragmentation and its effect on technical inefficiency on dairy farms in Ireland. Using a stochastic production frontier model, our results show that the number of parcels, the average distance between parcels and the main farm, and the portion of land separate from the main farm all increase technical inefficiency. Such inefficiency can be reduced through increased parcel area, reduced travel distances, advisory services contact, intensive practices and hired labour. Our findings support the need for policy to improve land and labour mobility, providing evidence to support incentives to promote the transfer and long‐term leasing of agricultural land.