DEA models are frequently used to measure efficiency and propose policies. The original model does not consider the dynamic and stochastic set of agricultural production. As a consequence, a producer can make the correct decisions but obtain less satisfactory results due to price or productivity changes, resulting, for example, from excessive rain. To correct this problem a two-stage model that consider price and productivity distributions is proposed. Results comparing the efficiency of irrigated agriculture producers show that the distribution of efficiency scores are more centered, reducing the stochastic effects typical of agricultural production.
Efficiency; Irrigated agriculture; Environmental adjusts
