Estimating A Farm Group Model and Input Allocations Using Accountancy Data

This paper proposes and applies an innovative estimation approach for farm group programming models using Generalised Maximum Entropy. The proposed set-up simultaneously determines calibrating cost function parameters and input allocations to production activities. The methodology is applied to Belgium FADN data of arable farms for which available input allocations allow to validate the estimation approach. Results outperform separate estimates of input allocations previously applied in the literature and this finding is robust with respect to support point design.