Effects of Different Types of Labor Hiring on Economic Performance and Efficiency of Farms in Kas District of Antalya Province, Turkey

Abstract

The purposes of the study were: (i) To comparatively estimate the economic performance and productive efficiency of owner and sharecroppers in Kas District of Antalya Province in Turkey, (ii) To find out the factors affecting the profitability of owner operators and sharecroppers, and (iii) To formulate the policy options in the light of findings. Research data were collected from randomly selected 58 owner operators and 45 sharecroppers by using questionnaire. Cluster analysis was performed to select similar sharecropper and owner operator in terms of farmers' profile, farm income, and land size. Data envelopment analysis (DEA) was used to estimate the efficiency measures. Research result showed that labor cost of sample farm had largest share in total farm expenses. The tomato and pepper yield of sharecroppers were higher than that of owners. Net farm income of owner operator and sharecroppers per hectare were $44518.3 and $51248.8, respectively. The mean technical, allocative and economic efficiency of owner operators were 0.724, 0.729 and 0.528, respectively, while that of sharecroppers was 0.851, 0.598 and 0.509, respectively. Sharecroppers had higher technical efficiency score compared to owners, but reverse was the case for allocative and cost efficiency scores. According to the research findings, farmers can increase their technical competence, if both owner operator and sharecropper improved their skills by participating in training and extension programs. Implementing performance-based earning systems may accelerate improving farmers' technical capability. Reorganizing of farm and controlling marketing cost may also be beneficial for increasing economic efficiency in the research area.