Production Risks and Technical Efficiency Across Low-Emission Rice Farming Practices: A Stochastic Frontier Analysis With Flexible Risk Properties in the Mekong Delta

This study investigates production risks and technical efficiency across low-emission rice farming practices in the Mekong Delta, Vietnam, using data from 748 rice farming households. A stochastic frontier analysis model with flexible risk properties was applied to assess how production uncertainty affects farm performance. The findings show that phosphorus, pesticides, and labor significantly boost yield, but excessive input use - especially phosphorus—can raise production risks, stressing the need for optimized application. Both low-emission and conventional farming practices demonstrate high technical efficiency (TE), with most farms scoring TE ≥ 0.9 under risk-inclusive conditions. However, low-emission farming practices show greater variability in efficiency, likely due to their reliance on biological pest control and less stable inputs, making them more sensitive to risks. When production risks were excluded, efficiency improved in both systems, highlighting how risk factors influence farmers’ resource use and decisions. The study underscores the importance of targeted risk management support, particularly for low-emission farms, and advocates for policies promoting input optimization and technological adoption. These measures are essential to improve farm resilience, ensure sustainable rice production, and enhance technical efficiency amid growing environmental and economic challenges.