Measuring the technical efficiency of rice farmers in Chiang Mai province, Thailand

Abstract

Rice farmers have faced several problems including low agricultural productivity, insufficient knowledge of agricultural production, and high cost of inputs. This study aims to measure the technical efficiency of a rice farmer and affecting factors to inefficiency level. The primary data was collected from 100 rice farmers in Mae-On and San Kamphaeng District in Chiang Mai Province, Thailand. This study used data envelopment analysis (DEA) input-oriented with a variable return to scale (VRS) model to measure technical efficiency (TE) and the Tobit model to estimate the affecting factors of inefficiency. The results of the DEA estimation revealed that the average TE was 0.849. The data showed that 42% and 22% were operated under decreasing return to scale (DRS) and Increasing Return to Scale (IRS), 36% were operated under Constant Return to Scale (CRS). Moreover, the Tobit model indicated that the member of family and extension material have negatively and significantly affected farmers’ technical inefficiency. Finally, we suggested that the improvement of extension material should be considered to increase agricultural productivity on rice cultivation.