Abstract
Profit efficiency is a tool to measure the performance of economic agents in utilizing their resources. This chapter measures profit efficiency of seed producers in using chemical fertilizer, labor, animal manure and operational land in rice-wheat cropping system using stochastic frontier profit function. Data for this study was collected from 180 households involved in rice and wheat seed production across the three Tarai districts: Siraha, Chitwan, and Kailali of Nepal. Result shows that households are 41.1 % efficient in utilizing the aforementioned inputs, and the efficiency level among the households varies from 6 to 84 %. This variation is mainly explained by gender, physical structure, technical empowerment, incentive system, and diversification. This study recommends the integration of social benefit and technical empowerment indices along with economic benefit while evaluating the performance of community seed production.
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Notes
- 1.
\( \mathrm{P}\mathrm{C}\mathrm{A}={\alpha}_1{x}_1+{\alpha}_2{x}_2+\cdots, {\alpha}_m{x}_n \), where PC = the principal component, α 1 is weight of variable 1 (value ranging from 1 to n), and x 1…x n are the observations.
- 2.$$ \mathrm{Profit}\ \mathrm{loss}=\mathrm{Maximum}\ \mathrm{possible}\ \mathrm{profit}\hbox{--} \mathrm{observed}\ \mathrm{profit},\ \mathrm{and}\ \mathrm{maximum}\ \mathrm{possible}\ \mathrm{profit}=\mathrm{Observed}\ \mathrm{profit}/\mathrm{P}\mathrm{E} $$
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Khanal, N.P., Maharjan, K.L. (2015). Profit Efficiency in Seed Production Under Rice–Wheat Farming. In: Community Seed Production Sustainability in Rice-Wheat Farming. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55474-5_6
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DOI: https://doi.org/10.1007/978-4-431-55474-5_6
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