Year: 2025
Type: article
Abstract: ABSTRACT Using a 2007–2014 panel of Austrian crop farms, we analyse the effect of multiple dimensions of land fragmentation on farms' production efficiency and risk performance. We use data envelopment analysis (DEA), a non‐parametric linear programming approach, to estimate efficiencies. Technical efficiency is decomposed into (i) scale efficiency, (ii) pure technical efficiency and (iii) input‐mix efficiency. Risk efficiency, a concept borrowed from modern portfolio theory, measures the performance of a farm relative to a mean–variance frontier. A second‐stage DEA analysis reveals that farms with fewer plots and a shorter average farmstead to plot distance tend to be more technically efficient. Larger plots allow for better exploitation of returns to scale. The scattering of plots has no statistically significant effect on technical efficiency but provides benefits in terms of higher risk efficiency. Land consolidation projects should carefully weigh the costs and benefits associated with different dimensions of land fragmentation.
Author: Andreas Eder
Institution: BOKU University
Language: English
Field: Decision Sciences
Domain: Social Sciences
SDG: Zero hunger
Open Access status: hybrid
Estimated APC paid: $4,150
OpenAlex ID: W4408384056