Resource use efficiency in farming: An application of stochastic frontier production function

Abstract

Farming dwellers have turned to fill the gap between food demand and supply. It was observed that farming, like economic activities, is the issue of efficiency. In this paper, the stochastic frontier production function was employed to analyse the resource use efficiency of farmers in Bangladesh. The result shows that 76% of farmers were 70% technology efficient, of which maximum efficiency is 0.92, while minimum efficiency in farm is 0.45.