Productivity and efficiency in Czech agriculture: Does farm size matter?

This paper deals with the sources of total factor productivity (TFP), namely technical efficiency, scale and technological change, considering size agricultural producers using balanced panel data in period 2014–2018 drawn from Farm Accountancy Data Network (FADN) database for three sectors Czech agriculture – cereals, milk, beef. The investigation is based on stochastic frontier (SF) modelling an input distance function (IDF) four error components (heterogeneity, statistical noise, persistent transient inefficiency). sector-specific models are estimated by a four-step estimating procedure system generalised method moments (GMM) estimator to address endogeneity problem. results reveal inter- intra-sectoral differences drivers. In particular, smallest lag considerably behind largest ones due effect (SEC). While large farms should focus improvements efficiency have been identified as main coping losses small farmers.