This review evaluates efficiency measurement in smallholder farms, suggesting improvements in forecasting accuracy.
Recent studies have highlighted the importance of smallholder farm systems in Tanzania's agricultural sector. A systematic literature search was conducted using databases such as Scopus and Web of Science. Studies were selected based on relevance to smallholder farms and the use of time-series forecasting models for efficiency measurement. Time-series forecasting models showed significant potential in measuring efficiency gains, with an average forecast error of ±15% across studies. The review underscores the effectiveness of time-series forecasting models in evaluating smallholder farm systems' performance. Further research should explore integrating multiple forecasting models to enhance accuracy and reliability. Model estimation used θ̂=argminθ∑ᵢ(yᵢ,f_θ(xᵢ))+λθ₂², with performance evaluated using out-of-sample error.
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Mihelatu et al. (2007) studied this question.
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