Die Bodenkultur - Journal for Land Management, Food and Environment

E. Oxouzi, M. Galea and E. Papanagiotou:

Crop and livestock farm efficiencies in the less favoured areas in Greece and the impact of compensatory allowance


The aim of this work is to study crop and livestock farm efficiencies without subsidy contribution in the less favoured areas in Greece, as well as to assess the impact that compensatory allowance has on such efficiencies. Research was based on primary data collected from 127 crop and livestock farms during the period 2006–2007. The DEA method has been used in order to measure the efficiency of farms both in the crop and livestock sector. Results indicate that crop farms reach lower overall technical efficiency, pure technical efficiency and scale efficiency than livestock farms. In addition, when compensatory allowance is taken into account, the efficiency increases, with the greatest impact observed in crop farms. Key words: Less favoured areas, efficiency, DEA, compensatory allowance, Greece.