Production Efficiency Analysis in Horticultural Smart Farms using Stochastic Frontier Analysis

Key Points

• This research aims to quantitatively identify factors causing disparities in production efficiency in smart farms.
• Used individual farm data collected from the Rural Development Administration.
• Total output was set as the output variable, while planting area and planting density served as input variables.
• Applied stochastic frontier analysis to separate error and inefficiency.
• Incorporated greenhouse type, control skill, and standard deviations of internal temperature, humidity, and CO₂ into the inefficiency equation.
• Increased planting density was associated with diminishing marginal output.
• Higher control stability significantly reduced inefficiencies.
• Precision in environmental control and operational quality were key for enhancing efficiency.

Abstract