Assessing the technical efficiency of extensive livestock farming systems in Extremadura, Spain

The technical efficiencies of a sample of extensive dehesa farms were analyzed using a nonparametric Data Envelopment Analysis (DEA) model. This technique creates efficiency indices by comparing the performance of each farm with the best production practices observed, which define the efficiency or production frontier. The influence of the European Union's Common Agricultural Policy (CAP) subsidies (taken as an output) on the farms' efficiency was determined. The measurement of the efficiency has taken place from inputs per hectare thus allowing to make a different interpretation from the scale efficiency that, instead of referring to the dimension of the farm, is referred to the intensification. Thanks to the input-oriented analysis it can be established that the farms could maintain similar production levels by introducing a 30% reduction of their inputs (e.g. with breeds better adapted to the environment, a better use of the own produced pastures to reduce the amount of feedstuff to be bought, reductions in manpower…). Those highly intensified dehesas have shown decreasing inefficiencies of scale, whereas the least intensified have shown increasing inefficiencies. With a second stage analysis, different types of farms were identified as corresponding to greater or lesser efficiencies. It has been identified that the group of farms with high stocking rates have the greatest efficiencies indices. With respect to the livestock orientation, the farms with a livestock mix including pig were the most efficient. Modifications in the stocking rate, allowing an adequate use of the natural resources available, can be a solution to improve the efficiency of dehesa farms. In addition mixed livestock farming is another useful tool towards achieving increased efficiency, and a reduced dependence on subsidies.