PR - Measuring Scope Efficiency For Crop And Beef Farms (p245-253)
This paper examines scope efficiency for a sample of crop and beef farms in Kansas. Scope and economic efficiency were estimated for each individual farm using the nonparametric approach. Average scope efficiency was 0.25 indicating that joint production of crop and beef cow enterprises on the same farm reduced total cost by 25%. Scope efficiency was significantly higher for smaller farms. Despite the relatively higher scope efficiency levels, economic efficiency was significantly lower for smaller farms.
Keywords: Economic and Scope Efficiency