Efficiency analysis of sustainable and conventional farms in the Republic of Korea with special reference to the Data Envelopment Analysis (DEA)

This study compares the scale efficiency scores of conventional and sustain able farms. The analysis includes four different input- and output-oriented efficiency calculations by Constant Return to Scale (CRS) and by Variable Return to Scale (VRS). It was found that sustainable farms have a more prof itable input/output relationship than conventional farms. According to an i nput-oriented scale efficiency analysis, conventional farms have a scale ef ficiency score of 0.896, while sustainable farms have a score of 0.977. The re are, however, certain possibilities to increase the level of farm income in an input-oriented efficiency analysis by reducing present level of chem ical fertilizers and pesticide application on both conventional and sustain able farms. For example, a conventional farm with a low efficiency score ma y increase its level of income by up to 73.2%. with a 18.2% reduction in th e cost of pesticide. At the same time, a sustainable farm may also increase its level of income by up to 27.69% by reducing the cost of pesticide. Con ventional farms with pesticide application have the lowest efficiency score , though it is certainly possible to increase the level of farm income, acc ording to output-oriented CRS and VRS, by reducing chemical fertilizer and pesticide applications. On conventional rice farms, cost efficiency is high est with application rates of 30 kg of chemical fertilizers, 411 ml of herb icide, and 114 g of pesticide per 0.1 ha. On sustainable farms, cost effici ency is highest with application rates of 5 kg of chemical fertilizers per 0.1 ha and no herbicide or pesticide at all. Farm efficiency is highest in rice farms where raising ducks precludes the application of pesticide.