Technical Efficiency of Medicinal and Herbal Plant Farms in Jordan

This study was conducted to measure technical efficiency of a sample of medicinal and herbal plants farms and to explore determinants of their technical efficiency in Jordan. Managers from 50 farms were interviewed. Farm level data were obtained in 2006-2007 production period. Data Envelopment Analysis and Banker, Charnes and Cooper- Input Oriented Model (BCC-I) were used to estimate technical efficiency. Results indicated that 36 farms were efficient with technical efficiency value equal to 1, whereas 14 farms were inefficient. Technical efficiency was in the range of 0.25-1 (avg. = 0.88). Technical efficiency was negatively related to age, education, and experience of framers and number of crops grown in the farm, but positively related to agricultural area and farm size. Although older farmers may have more “learning by doing” experience, farmers of less than 50 years of age were more efficient than older ones. Farmers were relatively efficient although they may not be highly educated. Technical efficiency was higher in highlands than in the rift valley. Large farms had higher technical efficiency than smaller ones. Specialization in one or two medicinal and herbal plants crops enhanced technical efficiency