Applying Efficiency Analysis to Small Farms in Low Income Countries: Some Theoretical and Empirical Considerations

Abstract

"The success of policies for raising agricultural productivity and improving the welfare in low income countries may often depend very substantially upon the quality of decision making by farmers. For example, both the rate of diffusion and the magnitude of the benefits derived from new agricultural technologies may be significantly related to farmer decision skills. The better farmers are able to evaluate the advantages and disadvantages of new techonologies and the sooner farmers learn to use new techonologies, the faster will be the spread of profitable new technologies. Likewise, as farmers become more highly skilled in managing new technologies, they will realize the full potential benefits of new techniques."