Investigating farmer’s identity and efficiency of tourism-oriented farm diversification

Abstract

Whether farm management in conducting tourism activity becomes more efficient or not is an important theoretical and empirical question for the promotion of tourism in agriculture. Thus, this study theoretically and empirically evaluated the efficiency of educational dairy farms that provide educational tourism by data envelopment analysis. The financial data were collected by the author’s survey of these farms located around the Tokyo Metropolitan area. Based on the theoretical framework that stipulates that the efficiency of farm activity is determined by a farmer’s identity, a bilateral slacks-based measure (SBM) model and Super SBM model were applied to empirically evaluate efficiency. The results revealed that those farmers who engage in processing milk products and direct selling have higher efficiency than those who do not. This is because having an enlarged identity that provides a wider perspective on farm activity enables these farmers to create demand and reduce marginal cost. This wider perspective was nurtured through the network of educational tourism activity. Thus, educational tourism activity by dairy farmers can nurture a new business opportunity and lead to efficient farm resource allocation. Identity can be a crucial factor in building rural entrepreneurship in tourism.