Technical efficiency of rice farmers under the large agricultural plot scheme in Khlong Khuean District, Chachoengsao Province, Thailand

Abstract

This research aimed to discover the technical efficiency (TE) and factors influencing the TE of the Large Agricultural Plot Scheme Project (LAPS) in the Khlong Khuean District, in Chachoengsao Province, Thailand. The samples were 150 registered rice farmers separated into three groups by land size: 1) six farmers from small-sized farms (0-1 ha); 2) 33 farmers from medium-sized farms (1-2 ha); 3) 111 farmers from large-sized farms (more than 2 ha). Estimated TE was obtained by using a stochastic production frontier model, and the factors influencing the TE were obtained from multiple regression. The result revealed that small-sized farms gained highest TE score at 0.829. The education level of farmers was significant at 0.01% and showed a negative coefficient with the TE, because farmers continue to use traditional production methods. Knowledge sharing is a crucial tool to improve efficiency. To improve TE of rice farms, reducing farm inputs, such as seeds, fertiliser, and labour-intensive was recommended. In addition, this research revealed that farm size affects outputs, indicating that large farms were more technically efficient than smaller farms. Additionally, education level influenced TE. The LAPS was one of the policies supported by the government that aimed to increase farmers' outputs.