TECHNICAL EFFICIENCY IN LAND USE FOR SOYBEAN CROPPING BY SMALL FARMS EVIDENCES FROM NORTHERN MATO GROSSO, BRAZIL

Abstract

We aimed to analyze the efficiency of small farmers in Mato Grosso that crop soybean. Data Envelopment Analysis (DEA) method was employed and we identified factors effecting efficiency with a logit model. Results demonstrated that only few farmers are efficient in soybean cropping because this production is based in economies of scale due to the high costs involved in the technological package. Two main practices were identified to reduce small farmers dependence of economies of scale: the costs funding with contracts between farmers and tradings and the acquisition of used machinery or contracts of services in substitution of new equipment. Soybean proved economic feasible in inefficient farms but requires the development of better policies to be sustainable.