Technical Efficiency Estimation of Rubber Farming in Thailand

Abstract

This study investigates the technical efficiency of rubber production among Thai rubber farmers and identifies the factors influencing both rubber production quantity and efficiency. A stochastic production frontier model was employed using 14 years of data from the Economic and Agricultural Household Survey, combined with sub-district weather data. The findings highlight the significant impact of agricultural production costs and plantation area on rubber production at both national and regional levels. While agricultural asset values and the number of workers were statistically insignificant, Thai rubber farmers operate at an average of 67% of their potential production efficiency. The North region exhibited the lowest efficiency, whereas both the North and Northeast demonstrated the greatest potential for improvement relative to the national frontier. Climate factors and farm practices were identified as consistent determinants of inefficiency. Policymakers can enhance rubber production efficiency by targeting key interventions, such as climate-smart agriculture practices and improved farm management, to align with the Sustainable Development Goals.