Farm income sources, farm size and farm technical efficiency in Slovenia

The impact of off-farm income on farm technical efficiency of Slovenian Farm Accountancy Data Network farms is analysed for 2004–08 employing stochastic frontier analysis. Results suggest that family farms and off-farm income are dominant in the farming structures. Estimations confirm technical efficiency is slightly higher for farms with off-farm income. The quantile regression analysis confirmed the positive impact of farm size and negative impact of government subsidies on technical efficiency of farms with and without off-farm incomes. The impact of family farm organisation on farm technical efficiency is positive for farms without off-farm income but differs by quantiles of technical efficiency for farms with off-farm income.