A Survey of Efficiency in Khorasan Province Cotton Farms through Parametric Approach

Technical and scale efficiencies of cotton farms, in Khorasan province, were estimated through the parametric approach during the period 2000-2003. Efficiency was estimated through stochastic Translog Frontier Production Function based on panel data. Results indicated that technical efficiency wa rated as less than scale efficiency. Means of technical and scale efficiency were found to be 63 and 88 percent respectively. In addition, education and promotion of agriculture exerted a positive significant effect on technical efficiency of farmers. However, a vast majority of cotton producing formers suffer from suboptimal farm scales. According to the findings, education along with promotion of agriculture with respect to optimal application of inputs and increasing of input productivity (as regards the offering of relevant supportive policies) have been emphasized for increasing yield and an improvement of efficiency.