Improving agricultural sustainability through farm mergers: an energy efficiency perspective

ABSTRACT

The aim of this paper is to investigate agricultural sustainability as a collective issue involving multiple rather than individual farms. Through the utilization of energy consumption as a proxy, we propose a novel methodology that evaluates the impact of farm consolidations on agricultural sustainability while accounting for resource preferences. Our approach incorporates the ordered weighted averaging (OWA) operator within an inverse data envelopment analysis (IDEA) model to identify post-merger farms that meet preset efficiency targets. We employ a DEA cross-efficiency (DEA-CE) procedure to select merger plans that maximize agricultural sustainability for each preference scenario. By analysing a case study of 43 tomato greenhouse farms in Biskra, northern Algeria, our findings demonstrate that mergers can significantly enhance agricultural sustainability, surpassing the potential of individual farms by a factor of over 15. Additionally, the adoption of the most sustainable merger plan can lead to energy savings of more than 69%. Irrespective of the preference scenario, substantial energy savings in machinery, fertilizers, diesel, and electricity ranging from 22.92% to 73.73% were observed. These results emphasize the strategic role of merger processes in promoting agricultural sustainability and optimizing resource utilization.

KEYWORDS:

• Agricultural sustainability
• farm mergers
• resource optimization
• energy efficiency
• sustainability assessment
• data envelopment analysis (DEA)
• inverse DEA
• ordered weighted averaging (OWA)

Disclosure statement

No potential conflict of interest was reported by the author(s).