Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile

This study aims to examine the impact of land tenure arrangements on production costs in a sample of rice farmers in Ñuble Region, Chile. A stochastic frontier model was estimated using the primal approach on a panel of 107 farmers in 2014-2015. Production cost was broken down into frontier costs a...

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Autores principales: Troncoso Sepúlveda, Ricardo Andrés, Cabas Monje, Juan Hernán, Guesmi, Bouali
Formato: Online
Lenguaje:eng
Publicado: Facultad de Ciencias Agrarias-UNCuyo 2023
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Acceso en línea:https://revistas.uncu.edu.ar/ojs3/index.php/RFCA/article/view/6749
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language eng
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author Troncoso Sepúlveda, Ricardo Andrés
Cabas Monje, Juan Hernán
Guesmi, Bouali
spellingShingle Troncoso Sepúlveda, Ricardo Andrés
Cabas Monje, Juan Hernán
Guesmi, Bouali
Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile
producción de arroz
tenencia de la tierra
modelo estocástico
ineficiencia de costos
mala asignación
rice production
land tenure
stochastic model
cost inefficiency
misallocation
author_facet Troncoso Sepúlveda, Ricardo Andrés
Cabas Monje, Juan Hernán
Guesmi, Bouali
author_sort Troncoso Sepúlveda, Ricardo Andrés
title Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile
title_short Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile
title_full Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile
title_fullStr Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile
title_full_unstemmed Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile
title_sort land tenure and cost inefficiency: the case of rice (oryza sativa l.) cultivation in chile
description This study aims to examine the impact of land tenure arrangements on production costs in a sample of rice farmers in Ñuble Region, Chile. A stochastic frontier model was estimated using the primal approach on a panel of 107 farmers in 2014-2015. Production cost was broken down into frontier costs and inefficiency. According to findings, economic inefficiency raises rice production costs by 82%. Technical inefficiency accounts for a 61% increase, while allocative inefficiency accounts for 21%. Across tenure types, land is the input with the highest misallocation, accounting for 93% of allocative inefficiency costs. Sharecropping is the arrangement allocating inputs most efficiently, producing significant differences in production costs relative to leasing and ownership. This finding suggests that before designing a policy to induce a tenure system, it is necessary to evaluate specific cases as there is no system superior to another, strictly speaking. Highlights: Economic inefficiency raises rice production costs by 82%. Technical inefficiency accounts for a 61% increase, while allocative inefficiency accounts for 21%. The sharecropping system stood out as the most efficient, with production costs 13.5% lower than the rental system and 3.4% lower than those of the ownership system. Sharecroppers have a higher incentive to exert more effort and complete all responsibilities more efficiently, which can cut down on or do away with the costs associated with supervision that are typical in wage labor systems.
publisher Facultad de Ciencias Agrarias-UNCuyo
publishDate 2023
url https://revistas.uncu.edu.ar/ojs3/index.php/RFCA/article/view/6749
topic producción de arroz
tenencia de la tierra
modelo estocástico
ineficiencia de costos
mala asignación
rice production
land tenure
stochastic model
cost inefficiency
misallocation
topic_facet producción de arroz
tenencia de la tierra
modelo estocástico
ineficiencia de costos
mala asignación
rice production
land tenure
stochastic model
cost inefficiency
misallocation
work_keys_str_mv AT troncososepulvedaricardoandres landtenureandcostinefficiencythecaseofriceoryzasativalcultivationinchile
AT cabasmonjejuanhernan landtenureandcostinefficiencythecaseofriceoryzasativalcultivationinchile
AT guesmibouali landtenureandcostinefficiencythecaseofriceoryzasativalcultivationinchile
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spelling I11-R107article-67492023-12-18T19:06:58Z Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile Land tenure and cost inefficiency: the case of rice (Oryza sativa L.) cultivation in Chile Troncoso Sepúlveda, Ricardo Andrés Cabas Monje, Juan Hernán Guesmi, Bouali producción de arroz tenencia de la tierra modelo estocástico ineficiencia de costos mala asignación rice production land tenure stochastic model cost inefficiency misallocation This study aims to examine the impact of land tenure arrangements on production costs in a sample of rice farmers in Ñuble Region, Chile. A stochastic frontier model was estimated using the primal approach on a panel of 107 farmers in 2014-2015. Production cost was broken down into frontier costs and inefficiency. According to findings, economic inefficiency raises rice production costs by 82%. Technical inefficiency accounts for a 61% increase, while allocative inefficiency accounts for 21%. Across tenure types, land is the input with the highest misallocation, accounting for 93% of allocative inefficiency costs. Sharecropping is the arrangement allocating inputs most efficiently, producing significant differences in production costs relative to leasing and ownership. This finding suggests that before designing a policy to induce a tenure system, it is necessary to evaluate specific cases as there is no system superior to another, strictly speaking. Highlights: Economic inefficiency raises rice production costs by 82%. Technical inefficiency accounts for a 61% increase, while allocative inefficiency accounts for 21%. The sharecropping system stood out as the most efficient, with production costs 13.5% lower than the rental system and 3.4% lower than those of the ownership system. Sharecroppers have a higher incentive to exert more effort and complete all responsibilities more efficiently, which can cut down on or do away with the costs associated with supervision that are typical in wage labor systems. This study aims to examine the impact of land tenure arrangements on production costs in a sample of rice farmers in Ñuble Region, Chile. A stochastic frontier model was estimated using the primal approach on a panel of 107 farmers in 2014-2015. Production cost was broken down into frontier costs and inefficiency. According to findings, economic inefficiency raises rice production costs by 82%. Technical inefficiency accounts for a 61% increase, while allocative inefficiency accounts for 21%. Across tenure types, land is the input with the highest misallocation, accounting for 93% of allocative inefficiency costs. Sharecropping is the arrangement allocating inputs most efficiently, producing significant differences in production costs relative to leasing and ownership. This finding suggests that before designing a policy to induce a tenure system, it is necessary to evaluate specific cases as there is no system superior to another, strictly speaking. Highlights: Economic inefficiency raises rice production costs by 82%. Technical inefficiency accounts for a 61% increase, while allocative inefficiency accounts for 21%. The sharecropping system stood out as the most efficient, with production costs 13.5% lower than the rental system and 3.4% lower than those of the ownership system. Sharecroppers have a higher incentive to exert more effort and complete all responsibilities more efficiently, which can cut down on or do away with the costs associated with supervision that are typical in wage labor systems. Facultad de Ciencias Agrarias-UNCuyo 2023-10-03 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://revistas.uncu.edu.ar/ojs3/index.php/RFCA/article/view/6749 10.48162/rev.39.109 Revista de la Facultad de Ciencias Agrarias UNCuyo; Vol. 55 No. 2 (2023): July-December; 61-75 Revista de la Facultad de Ciencias Agrarias UNCuyo; Vol. 55 Núm. 2 (2023): Julio-Diciembre; 61-75 1853-8665 0370-4661 eng https://revistas.uncu.edu.ar/ojs3/index.php/RFCA/article/view/6749/5883 Derechos de autor 2018 Revista de la Facultad de Ciencias Agrarias UNCuyo https://creativecommons.org/licenses/by-nc-sa/3.0/deed.es