Technical efficiency analysis for oilseed sunflower farms: a case study in Erzurum,Turkey

BACKGROUND: The main purpose of this study was to examine the technical efficiency of farms producing sunflower in Erzurum, Turkey and to identify factors that might be causing inefficiency. Stochastic frontier analysis was used to measure technical efficiency. One hundred and seventeen randomly selected farms were interviewed for farm‐level data in the 2004–2005 production period. RESULTS: Results revealed that the mean technical efficiency for the sunflower farms, estimated by the stochastic production frontier, is 64%. At full technical efficiency, on average, the farmers could reduce their inputs by around 56% without reducing their sunflower production, simply by improving technical efficiency. In the inefficiency model the parameter estimates showed that older farmers, higher level of farmer's education, more experienced farmers, larger farm size and higher information score resulted in lower technical inefficiency, while bigger family size and more credit usage resulted in higher technical inefficiency. CONCLUSION: This study proposes strategies such as providing better extension services and farmer‐training programmes, including more educated people in sunflower farming and also expanding the sunflower‐growing area through provision of adequate facilities in order to increase technical efficiency. Copyright © 2010 Society of Chemical Industry