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An Analysis of the Affecting Factors on Management Profitability in Plum Farm

In this study, in order to analyze the factors affecting profitability, domestic prune cultivation status was reviewed, and 3-step DEA analysis and regression model estimation were performed using survey data on prune farm management. The results of the analysis are as follows. First, the area of cultivation of plums and the amount of production are increasing, concentrated in the Gyeongbuk region, and the net rate of return was decreasing due to the rapid increase in production costs. Second, the coefficient of variation on farm profitability was the highest at 0.829, indicating that prune farmers showed great differences in farm profitability based on technical efficiency. Third, the coefficient of variation for farm profitability was the highest at 0.563, indicating that prune farmers showed great differences in farm profitability based on pure technical efficiency. Fourth, the coefficient of variation for farm profitability was the highest at 0.666, indicating that prune farmers showed great differences in farm profitability based on scale efficiency. Fifth, as a result of regression analysis it was found that farm profitability increased as production efficiency increased, and farm profitability increased as management effectiveness increased. Sixth, in terms of technology efficiency and scale efficiency, management effectiveness has a greater effect on farm profitability, and in pure technology efficiency, production efficiency has a greater effect on farm profitability.