Rational waste? - understanding inefficiencies of Swedish dairy farms

For many farmers profit maximization is not a primary interest; instead farming is valued for other qualities related to agricultural businesses. Farmers with livestock production can for example prioritize animal welfare, which in some situations may not lead to productivity improvements. In a standard analysis of farm efficiency such farms might be perceived as inefficient.

This project aims to investigate the presence of inefficiencies on Swedish dairy farms. Specifically, we want to test the hypothesis that at least part of the inefficiencies depend on rational decisions. This is important to understand especially when it affects the possibility of giving policy advice and implementing other measures that could contribute to farm efficiency. The study will be based on data from the Farm Accounting Survey (JEU), 2013.

The research is conducted in collaboration with associate professor Helena Hansson from the Department of Economics, SLU, and professor Mette Asmild at Copenhagen University. The project is scheduled for completion in late 2017.

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