Medium Term Analysis of Technical and Allocative Efficiency in Romanian Farms Using FADN Dataset

Abstract

The Farm Accountancy Data Network is an annual survey proposed by the European Union in order to estimate the impact of the Common Agricultural Policy on farmers. Lots of scholars have investigated the technical, economical and allocative efficiency using a non parametric approach such as the Data Envelopment Analysis (DEA) in Romanian farms throughout the Farm Accountancy Data Network dataset pointing out poor levels of technical efficiency, which were lower than the average European value. The purpose of this study was to assess using DEA approach technical, economic and allocative efficiency in Romanian farms part of the FADN dataset over six year time from 2007 to 2012. Findings pointed out an increase of technical efficiency compared to previous studies, as a consequence of a significant turn over of a younger high skill and qualified farmers generation. Poor land capital, in terms of utilized agricultural areas, connected to an increase of new technologies, was the downside of Romanian farms and this implied that the National Rural Development Plan should  have taken into account financial subsides in order to implement agricultural areas scattered in Romanian rural space