Off-Farm Employment and Outsourcing Production Effects on the Technical Efficiency of Farm Households’ Grain Production - A Case with the Data from Liaoning Province, China

This paper analyzed the effects of the off-farm employment and the outsourcing production pattern on the technical efficiency of grain production by the two-step method of DEA-Tobit, based on the data of grain production in the major areas of Liaoning province, in the year of 2011. It observed these findings that off-farm employment and income structure change did not have an effect on technical efficiency. Even then this is evidence that age makes a negative effect on farm technical efficiency but it is weakly. Farm scale and specialization have a positive effect on technical efficiency. And both large farm and small farms scale efficiency is on a high level. So a limited impact on farm technical efficiency comes from farm scale as well as a significant positive impact comes from farms production outsourcing.