Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis

Abstract

This paper uses the farm-level survey data to estimate the stochastic frontier production function incorporating inefficiency effects. Sufficient evidence of positive relationship between wheat productivity and higher and balanced use of fertiliser nutrients was present. The productivity showed an inverse relationship with the proportionate farm area allocated to rice production and illustrated no association with the proportion of farm area under cotton. The average technical efficiency at wheat farms was about 68 percent. An inverse relationship was observed between technical efficiency and farm size. The farmers with greater access to credit and located closer to the markets were found more efficient. The small farmers are not only producing at a lower level but are also operating relatively farther from the production frontier. The results also revealed that wheat growers in Punjab are comparatively more efficient than their counterparts in Sindh and NWFP.stochastic frontier production function; technical efficiency; small farmer; Pakistan; productivity