The objective of this study is to examine the potential of cost reduction and factors affecting production cost of Korean farmers. First, the study estimates technical efficiency, allocation efficiency, and cost efficiency of Korean farmers using DEA. Then, Tobit regressions are conducted to identify factors affecting each of the three efficiency scores. The study uses the Farm Household Economy Survey data from the Korean National Bureau of Statistics for the period from 2008 to 2012. Results from DEA show that overall, technical and cost efficiency scores are low, which suggests a great potential of cost reduction for Korean farmers. The results also show relatively large differences in efficiency scores across provinces. Tobit results suggest that farm size, number of family members, operation costs, and invested capital amount are major factors affecting farm efficiencies.

연구방법
자료 및 연구결과
ACKNOWLEDGMENTS
REFERENCES

• 이철희(농촌진흥청) | Cheol–Hi Lee Corresponding Author
• 정찬진(농촌진흥청) | Chanjin Chung
• 최칠구(미국 오클라호마주립대) | Chil-Goo Choi