The Importance of Subsidies in Azorean Dairy Farms’ Efficiency

The purpose of this chapter is to analyze the importance of subsidies in the Azorean dairy farms efficiency from 1997 to 1999. The technical and economic variables of 82 dairy farms of the FADN (Farm Accountancy Data Network) were analyzed over the period of 3 years. The DEA (data envelopment analysis) was the approach used to calculate the efficiency. The software used was the DEAP (Data Envelopment Analysis Program).