The study first identified fully efficient farmers and then estimated technical efficiency of inefficient farmers, identifying their determinants by applying a Zero Inefficiency Stochastic Frontier Model (ZISFM) on a sample of 300 rice farmers from central-northern Thailand. Next, the study developed scenarios of potential production increase and resource conservation if technical inefficiency was eliminated. Results revealed that 13% of the sampled farmers were fully efficient, thereby justifying the use of our approach.
Accordingly to the authors It is beyond the scope of this chapter to empirically explore the determinants of the commercialization of agriculture and its impact on poverty; so instead, they will present and discuss some empirical evidence on topics that remain hotly debated regarding commercialization and poverty. In Sect. 12.2, it is investigated how smallholder farmers in northern Vietnam have been affected by the recent food price volatility with respect to their income and consumption levels, while in Sect.