Assessing the performance of a nucleus estate and smallholder scheme for oil palm production in West Sumatra: a stochastic frontier analysis

Hasnah, Fleming, E and Coelli, T (2004) Assessing the performance of a nucleus estate and smallholder scheme for oil palm production in West Sumatra: a stochastic frontier analysis. Agricultural Systems, 79 1: 17-30. doi:10.1016/S0308-521X(03)00043-X


Author Hasnah
Fleming, E
Coelli, T
Title Assessing the performance of a nucleus estate and smallholder scheme for oil palm production in West Sumatra: a stochastic frontier analysis
Journal name Agricultural Systems   Check publisher's open access policy
ISSN 0308-521X
Publication date 2004-01-01
Sub-type Article (original research)
DOI 10.1016/S0308-521X(03)00043-X
Open Access Status Not yet assessed
Volume 79
Issue 1
Start page 17
End page 30
Total pages 14
Editor Hansen
J. and Thorton
P.K.
Place of publication Netherlands
Publisher Elsevier
Language eng
Subject C1
340201 Agricultural Economics
340213 Economic Development and Growth
340404 Cross-Sectional Analysis
720205 Industry costs and structure
720404 Productivity
Abstract In this paper, we study the performance of smallholders in a nucleus estate and smallholder (NES) scheme in oil palm production schemein West Sumatra by measuring their technical efficiency using a stochastic frontier production function. Our results indicate a mean technical efficiency of 66%, which is below what we would have expected given the uniformity of the climate, soils and plantation construction among the sample farmers. The use of progressive farmers as a means of disseminating extension advice does not appear to have been successful, and more rigorous farmer selection procedures need to be put in place for similar schemes and for general agricultural extension in future. No clear relationship was established between technical efficiency and the use of female labour, suggesting there is no need to target extension services specifically at female labourers in the household. Finally, education was found to have an unexpectedly negative impact on technical efficiency, indicating that farmers with primary education may be more important than those with secondary and tertiary education as targets of development schemes and extension programs entailing non-formal education. (C) 2003 Elsevier Ltd. All rights reserved.
Keyword Agriculture, Multidisciplinary
Nucleus Estate
Oil Palm
Progressive Farmers
Smallholders
Technical Efficiency
Stochastic Frontier Analysis
Q-Index Code C1
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2005 Higher Education Research Data Collection
School of Economics Publications
 
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Created: Wed, 15 Aug 2007, 13:37:34 EST