Determinants of technical and productive efficiency of Peruvian agriculture

This study examines the determinants of technical efficiency among Peruvian agricultural units using microdata from the 2024 National Agricultural Survey (ENA). Stochastic frontier analysis is employed to estimate production efficiency and distinguish technical inefficiency from random production shocks. The baseline results reveal substantial efficiency gaps, with mean technical efficiency estimates of 0.52 for aggregate agricultural and livestock production and 0.42 for crop production. A single-stage stochastic frontier model incorporating inefficiency effects identifies access to credit, agricultural training, technical assistance, association membership, machinery availability, and education as factors associated with lower technical inefficiency. These findings highlight the importance of productive resources, human capital, financial inclusion, and institutional support in improving agricultural performance. The study contributes empirical evidence on productivity constraints in a heterogeneous agricultural economy and suggests that integrated policy interventions could improve resource utilization, strengthen production reliability, facilitate market integration, and enhance the competitiveness of Peruvian agri-food supply chains.