Measurement of Input Usage Efficiency in Cotton Production in Diyarbakir Province, Turkey

Abstract

This study aimed to measure the technical efficiency for cotton farms in Diyarbakir province in Turkey. Technical efficiency scores of cotton farms were calculated with Data Envelopment Analysis (DEA), which is a linear programming method of non-parametric. The sample for this study was 134 cotton farms in Diyarbakir province of Turkey selected using the proportional sampling method. Data collection was carried out following 2017-2018 growing seasons. Data were collected through a survey using questionnaire. The data were analysed by using basic descriptive statistics, Kolmogorov Smirnov test, Pearson correlation analysis, independent t-test, Mann Whitney U test, Correlation analysis, Tobit regression, and data envelopment analysis models. In the DEA analysis, size of cotton production area (ha), machine and human labour (h), N-P-K fertilizer (kg), pesticides (litres), fuel (litres), seeds (kg) and number of irrigations are used as input parameters whereas cotton yield (kg) is used as output parameter. The study results revealed that the scale efficiency score of cotton farms in Diyarbakir was 0.89 on average and ranged from 0.53 to 1.00. Additionally, cotton farms in the studied area could reduce their inputs by 3% and still produce the same level of cotton output. The Tobit analysis results showed that factors such cotton yield, N and K fertilizers have a positive effect on efficiency, whereas land size, P fertilizers, pesticides, machine, fuel, labour and seed have a negative effect on efficiency. The results imply that by improving knowledge of farmers about input usage and modern techniques of cotton production may increase technical efficiency. Also, policy makers should focus on technical training programs about input usage and improving production management.