Total Factor Productivity Change and Innovation in Farms Producing Paddy in Bafra District of Samsun, Turkey

Abstract

Paddy business owner does not use a significant portion of production factors to be effective for various reasons, but most of the time and get enough income, they are not at the desired level in terms of benefiting from innovations. The main objective of this research is to test whether the income sourced from efficiency increase was sufficient for being innovative, or not. The research data sources were farms producing paddy, previous studies related paddy, related institutions, view of academician and technical person in the research area and field observation. The farm level data covered the period of 2011-2013 and collected from randomly selected 60 farms by using well-structured questionnaire. To measure productive efficiency, DEA was used while we used Malmquist productivity index for exploring the change in total factor productivity. Innovation index was calculated in order to reveal innovation capacity of farms. Research results revealed that economic performance and innovation capacity of second group farms was better comparing to rest. Research results also showed that the percentage of the farms getting enough income from efficiency increase for being innovative for first, second and third group farms were 31 %, 40 % and 62 %, respectively. Income sourced by efficiency increase was lower than the required investment, while that of second and third was larger. The study suggest initiating the farmers for certified seed use via extension services and increasing the technology level through buying machine for drying, peeling and land leveling for increasing the productive efficiency. © 2016, Universidade Federal Rural de Pernambuco. All rights reserved.