Efficiency, environmental Contaminants and Farm Size: Testing for Links Using Stochastic Production Frontiers.

This paper investigates whether there is any relationship between farm size, technical efficiency and the use of agrichemicals which are potentially environmentally contaminating. These questions are pertinent in the context of current EU policy decions. Using two models of stochastic frontier production and a set of panel data on 35 farms from the South West of England for the years 1987-1991, we obtain an indication that there is a positive, though weak relationship between technical efficiency and the use of contaminants, and between technical efficiency and farm size. However, there is a negligible negative relationship between farm size and use of contaminants.