Taking a departure from conventional nonparametric benchmarking studies, this study benchmarks the performance of commercial farms in Western Australia’s Wheatbelt region using Total Factor Productivity efficiency (‘TFP efficiency’) and compares the results to those of conventional Debreu-Farrell technical efficiency measures that are orientation restricted. It is found that those two measures of farm performance differ and are influenced by different sources of farm heterogeneity. Therefore, derived policy insights and prescriptions also differ. The use of TFP efficiency is recommended to provide policy insight on how a decision making unit can maximize productivity relative to the best performing farms within a population sample.
|Publication status||Published - 2 Oct 2019|
|Event||2019 West Australian Agricultural and Resource Economics Conference - University of Western Australia, Perth, Western Australia, Australia|
Duration: 2 Oct 2019 → 2 Oct 2019
|Conference||2019 West Australian Agricultural and Resource Economics Conference|
|City||Perth, Western Australia|
|Period||2/10/19 → 2/10/19|