Determinants of Farm Technical Efficiency in Punjab Agriculture: Findings from a Household Survey

The present study assesses farm technical efficiency in the Punjab state using large household-level data. The results show that the mean farm efficiency is around 80 per cent implying that the farms can raise output by 20 per cent without additional resources through efficient use of existing inputs and technology. The main factors influencing farm efficiency include farm size, as small, semi-medium, and medium holdings exhibit greater efficiency compared to marginal farms. Households primarily dependent on crop cultivation as their main income source also tend to be more efficient, indicating that concentrated investments in farming improve resource allocation. Furthermore, there are clear regional differences, with farms in the central and south-western zones outperforming those in the sub-mountainous areas, where smaller farm sizes, lower productivity, and limited input use hinder efficiency. Targeted interventions focused on improving resource use, irrigation access, and regional support systems are vital for enhancing farm technical efficiency in Punjab. Hence, agricultural policies should promote extension services to educate farmers on optimal cropping practices.