Farm size and efficiency during transition: insights from Slovenian farms

Abstract

This research contributes to the issue of the size-efficiency relationship of family farms during the transition to a market-economy. More specifically it provides an empirical investigation for Slovenia during the period 1994-2003. In order to obtain wide insights, various efficiency measures, calculated with Data Envelopment Analysis, and various farm size indicators are used, based on Farm Accountancy Network Data averaged at production branch levels. The results reveal consistency regarding the farm size-efficiency relationships in the way that the correlation coefficients for each size indicator have always the same sign whatever the efficiency measure. They further suggest that family labour is more crucial than any other production factor in the country’s farming economy.

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