Inefficiency in rice production and land use: a panel study of Japanese rice farmers

An empirical analysis was conducted on the behavior of Japanese rice producers from the standpoint of efficiency in production using the panel data of the Rice Production Cost Statistics by the Ministry of Agriculture, Forestry and Fisheries. The stochastic frontier production function was estimated and the inefficiency indices of production were calculated. Based on this information, the efficient and inefficient rice producers were identified, and the factor demand behavior and characteristics of the land use for rice production were compared. We find that the production-efficient certified farmers lowered the land utilization rate of paddy for rice production greatly.