Profit Inefficiency among Hybrid Rice Farmers in Central Vietnam

This paper aims to investigate the profit inefficiency among hybrid rice farmers in Central Vietnam using stochastic frontier analysis method with a stochastic translog normalized profit frontier function. The results showed that the average profit efficiency was 0.63, implying 0.37 was profit inefficiency. The research found that age, education, irrigation, share of rice income, share of hybrid rice area, frequency of training attendance, experience, and topography are robust factors contributing to profit inefficiency. To enhance farmers’ profit efficiency, policies to improve educational level, increase training about hybrid rice production, improve irrigation system, and promote hybrid rice intensive production should be reinforced.