Managerial ability has important implications for farm growth. In this article we first show in a production model that increasing output with a fixed level of managerial ability can lead to a decrease in profits. Next, we discuss the effect that managerial ability has on economies of size. In...

In this article, we use a stochastic frontier latent class model to estimate the technology of dairy farms according to their degree of intensification. The results are compared with a model which assumes that the technology is common to all farms. The empirical analysis uses data on a balanced...