Inefficiency in Rice Production and Land Use: A Panel Study of Japanese Rice Farmers

An empirical analysis was conducted on the behaviour of Japanese rice producers from the standpoint of efficiency in production using the Rice Production Cost Statistics panel data from 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 behaviour and characteristics of the land use for rice production were compared. We found that the production-efficient certified farmers lowered the land utilisation rate of paddy for rice production greatly.