Agricultural Transition and Technical Efficiency: An Empirical Analysis of Wheat-Cultivating Farms in Samarkand Region, Uzbekistan

Abstract

Wheat and wheat products are an important part of the daily diet of Uzbek people, and thus, are under strategic consideration in terms of food security in Uzbekistan since the beginning of independence. In this study, wheat production during agricultural transition is reviewed and determinants of technical efficiency of wheat-cultivating farms in the Samarkand region are analyzed. Analyses are accomplished in two steps. In the initial step, technical efficiency of wheat farms is estimated using data envelopment analyses (DEA) and determenants of inefficiencies are analyzed by the Tobit model in the second step. Data for this study were collected from 124 randomly sampled private farms engaged in wheat production in the Samarkand region. The mean value of technical efficiency scores of wheat-growing farmers were found to be 0.79 and 0.82 under constant return to scale (CRS) and variable return to scale (VRS) assumptions. Empirical results suggest that there is a considerable scope for increasing production through reallocation of existing resources or that private farmers can reduce their input costs by 21 and 18 percent while holding the same production levels. The age of farmers, farmers’ education on agriculture, soil fertility, and the quality of seeds were found as the main determinants of technical efficiency in the study area.