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Measuring X-Efficiency and Scale Efficiency for a Sample of Agricultural Cooperatives

Published online by Cambridge University Press:  15 September 2016

Chatura B. Ariyaratne ,
Allen M. Featherstone ,
Michael R. Langemeier  and
David G. Barton
Chatura B. Ariyaratne
Affiliation:
Department of Agricultural Economics at Kansas State University
Allen M. Featherstone
Affiliation:
Department of Agricultural Economics at Kansas State University
Michael R. Langemeier
Affiliation:
Department of Agricultural Economics at Kansas State University
David G. Barton
Affiliation:
Department of Agricultural Economics at Kansas State University
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Abstract

This paper examines the efficiency of a sample of Great Plains grain marketing and farm supply cooperatives during 1988 to 1992. In general, larger cooperatives were more X-efficient and scale efficient. Labor tended to be under-utilized and capital over-utilized. Petroleum product sales and fertilizer sales were negatively related to overall efficiency. Sales of goods other than grain, fertilizer, agricultural chemicals, petroleum products, and feed was positively related to overall efficiency. Overall efficiency was significantly correlated with the rate of return to assets.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 29 , Issue 2 , October 2000 , pp. 198 - 207
Copyright
Copyright © 2000 Northeastern Agricultural and Resource Economics Association 

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