Department of Business Economics, Ch. Devi Lal University, Sirsa—175055, Haryana. E-mail: surrender_mor71@rediffmail.com
The farm-specific technical efficiency of wheat cultivation in Haryana has ben investigated using stochastic frontier production function, which incorporates a model for technical inefficiency effects. Various hypotheses have been tested using the generalized likelihood ratio statistisc. The study has revealed that the traditional average response function is not an adequate representation of the data. The technical efficiency has shown a wide variation across the sample farms, ranging from 0.23 to 0.98 in the study area. The mean technical efficiency has turned out to be 0.85. Thus, the yield of wheat in the state can be increased by 15 per cent without increasing the level of inputs if the inefficiency is reduced. On the other hand, if the efficiency is improved, farmers will gain considerably in terms of higher profits. Further, technical inefficiencies of production depend positively on age and negatively on education, farming experience, extension contacts and hired-labour ratio.
The study has reported the need to promote young farmers as decisionmakers along with raising the education level of farming community and efforts should also be made to further strengthen the extension contacts of farmers.
