Abstract

Osman Kilic, Turan Binici and Carl R. Zulauf

This study investigates production efficiency of hazelnut farmers located in the Carsamba Plain, Samsun-Turkey. A sample of 78 farmers was selected by a two-stage sampling process. Data Envelopment Analysis and Tobit Regression Analysis found that production efficiency of the hazelnut farmers ranged from 26.1 to 100.0%, with an average of 73.5%. This level of technical efficiency is consistent with the technical efficiency found in other studies of crop production in developing countries. Nevertheless, 70.5% of the hazelnut farms are using inputs inefficiently. A statistically significant positive relationship between a farmer’s education and a farm’s technical efficiency underscores the need for public investment in rural education to improve the efficient use of inputs. A statistically insignificant relationship between farm size and a farm’s technical efficiency implies that education programs should be available to all farmers regardless of the size of their farm. Moreover, the statistically significant relationship between farm fragmentation and efficiency is consistent with the importance of land consolidation program.