Farm Technical Efficiency and Extension

Abstract

This paper presents a methodology for estimating technical efficiency levels for individual farms using both a fixed effects panel model and a stochastic production frontier approach. It tests whether the estimated technical efficiency levels are associated with measures of contact with the advisory service. The approach is applied to a panel of 307 farms drawn from the Irish National Farm Survey over the period 1984 to 1994. The results show evidence that extension contact has had a positive impact on agricultural output.