scholarly journals Analysis of technical efficiency in maize production in Guji Zone: stochastic frontier model

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Aschalew Shiferaw Belete
Keyword(s):  
Maximum Likelihood ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Maize Yield ◽  
National Average ◽  
Likelihood Method ◽  
Farm Income ◽  
Total Production ◽  
Maize Production ◽  
Truncated Normal

Abstract Background The Guji Zone in particular and Oromia region in general have a huge potential for crop production that can even contribute for the country as a whole in the struggle for achieving food security. Maize is Ethiopia’s largest cereal crop in terms of total production, acreage, and the number of farm holdings. It is one of the staple crops produced in the study area. However, the farm productivity per hectare is low compared to the national average which indicates the presence of farming inefficiency in the study area. Thus, this study was undertaken with the objective of estimating the level of farmers’ technical efficiency in maize production and identifying the factors which determine the variation in the level of technical efficiency among the farmers. Results This study was relied on the primary data collected from a sample of maize producing farm household of Adola Rede and Anna Sorra districts of the Guji Zone using a survey questionnaire. A simple random sampling technique was found appropriate for selecting the respondents, since the populations of these study area are homogeneous. The analysis was relied on a cross-sectional data collected from 234 sample farm households. A one-step stochastic frontier normal/truncated-normal model was used to estimate the farmers’ technical efficiency as well as to identify the determinants of yield per hectare of maize which was estimated by maximum-likelihood method. The empirical result indicates that there are large numbers of inefficient farmers in both districts. The estimated technical efficiency for maize producing farmers is equal to 69.03%. Besides, the current study revealed that 69.23% of maize producing farmers have been operating within a technical efficiency score interval equal to (0.5–0.75) in both districts. In addition, the maize yield per hectare in the study area is very low compared to the national average, i.e., the mean yield is 19.2 quintal per hectare. Moreover, the maximum-likelihood results show that gender of the head of the household, age of the head of the household, farm income, row planting, access to credit, number of active labor force, land size owned, access to improved seed and seed type used, and number of livestock were significantly determine the farmers technical inefficiency. Conclusion The results of the study revealed that there is an opportunity which is being squandered in maize production in the study area. For instance, with a given technology, it is possible to raise the maize yield per hectare by 30.07% in the study area. Thus, the government and any concerned stakeholders should facilitate access to improved seed and fertilizer, credit, farm technology, and short-term training. Besides, all stakeholders should work in a cooperative and organized manner to implement the full agricultural package on farm level.

Assessing Production Efficiency by Farm Size in Rwanda: A Zero-inefficiency Stochastic Frontier Approach

2020 ◽  
Author(s):  
Jules Ngango ◽  
Seungjee Hong
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Sub Saharan Africa ◽  
Farm Size ◽  
Farm Income ◽  
Maize Production ◽  
Positive Effects ◽  
Study Results ◽  
The Relationship

Abstract This study investigates the relationship between farm size and technical efficiency for maize production in Rwanda. Since levels of technical efficiency tend to vary considerably across farms in sub-Saharan Africa, with a mixture of both inefficient and fully efficient farms, the use of the conventional stochastic frontier method is not appropriate. In this paper, we apply a zero-inefficiency stochastic frontier method that manages both efficiency and inefficiency in the studied sample. The average technical efficiency of maize farms for the full sample is estimated at 0.64, demonstrating that maize output can be improved by approximately 36% without increasing the proportion of farm inputs used. Regarding the relationship between farm size and technical efficiency, the study results show a positive relationship between farm size and technical efficiency for maize production in Rwanda. Thus, the enforcement of land reforms such as land consolidation and enhanced aggregate productivity growth are needed. The results also indicate that education, cooperative membership, extension services, access to credit, off-farm income, land tenure, and livestock ownership have significant and positive effects on technical efficiency.

scholarly journals Technical efficiency analysis of maize production: evidence from Ghana

2014 ◽  
Vol 8 (2-3) ◽  
pp. 73-79 ◽  
Author(s):  
Beatrice Bempomaa ◽  
Henry de-Graft Acquah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Maize Yield ◽  
Stochastic Frontier Approach ◽  
Maize Production ◽  
Productivity Level ◽  
Work Activities ◽  
Increasing Returns To Scale ◽  
Farm Work

The study applies the single-stage modelling stochastic frontier approach to investigate the performance of maize farmers in the Ejura-Sekyedumase District of Ghana. It estimates the level of technical efficiency and its determinants for 306 maize farmers. Findings indicated that land, labour and fertilizer influenced output positively whilst agrochemicals and seeds affected output negatively. A wide variation in output was also found among producers of maize. The study further revealed that age, sex and off-farm work activities were significant determinants of technical inefficiencies in production. Results from the maximum likelihood estimate of the frontier model showed that averagely, farmers were 67% technically efficient, implying that 33% of maize yield was not realized. The return to scale which measures the productivity level of farmers was 1.22, suggesting that the farmers are operating at an increasing returns to scale.

Technical Efficiency in Seed Potato Production Systems in Uganda

2018 ◽  
Vol 10 (3(J)) ◽  
pp. 122-140
Author(s):  
Ambrose Rwaheru Aheisibwe ◽  
Razack B. Lokina ◽  
Aloyce S. Hepelwa
Keyword(s):  
Technical Efficiency ◽  
Seed Potato ◽  
Arable Land ◽  
Stochastic Frontier ◽  
Potato Production ◽  
Maximum Likelihood Estimates ◽  
Farm Income ◽  
Seed Potato Production ◽  
Extension Services ◽  
Income Source

This study established the level of technical efficiency and its determinants among the informal and formal seed potato producers in the southwestern highlands agro - ecological zone of Uganda. A multi- stage sampling procedure was employed to select 636 households (499 informal seed producers and 137 formal seed producers) from which data was collected for two seasons using a semi - structured questionnaire. Data was analyzed using the stochastic frontier approach with a one - step approach. Maximum likelihood estimates for the efficiency parameters showed that both informal and formal seed potato producers were not fully efficient. The mean technical efficiency for informal and formal seed potato producers was 8 1 .4 and 80.4 percent respectively. In terms of yield loss, informal and formal seed potato producers respectively lost an average of 981 and 1,208 kg/acre of seed potato tubers due to inefficiency factors . Specifically, off- farm income source, scale of production, seasonal variation, access to extension services and seed producer being male positively influenced informal seed producers’ technical efficiency while producers’ level of education and seed potato variety diversity negatively influenced their efficiency. For formal seed producers, technical efficiency was influenced positively by producers’ education and negatively by household size. The study suggests that there is an opportunity to improve technical efficiency of informal and formal seed producers by 19 and 20 percent respectively. Therefore, this calls for increased investment in developing and promoting high yielding varieties, provision of extension services, input intensification and addressing gender issues in seed potato production in the context of limited arable land .

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals Efficacité Technique des Petits Producteurs du Maïs au Bénin

2018 ◽  
Vol 14 (19) ◽  
pp. 109
Author(s):  
Fawaz A. Adéchinan Aminou
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Farm Households ◽  
Farm Income ◽  
Selling Price ◽  
Stochastic Frontier Approach ◽  
Access To Credit ◽  
Seed Distribution ◽  
Production Area ◽  
Low Efficiency

This study examines how small maize farmers allocate their production inputs and identifies the elements that characterize efficient farms. A Cobb Douglas stochastic frontier approach is used to estimate farm level technical efficiency of maize farmers. Average technical efficiency of sampled farms was estimated to be 65.40% with a minimum of 20.47% and a maximum of 93.46%. The study further showed that the farmers’ sex, the use of improved seeds, the maize selling price, the non-farm income, the contact with an NGO, the access to credit and the production area played a positive and significant role in improving technical efficiency. The results imply that government can save resources used in extension services and focus on its improved seed distribution policy. Also, imperfections in the labor/capital market contribute to the low efficiency of farm households.

scholarly journals Is tilapia farming financially profitable and efficient? Policy options for sustainable farming

2019 ◽  
Vol 17 (1) ◽  
pp. 92-98
Author(s):  
Mezamun -Ara Mukta ◽  
Md. Akhtaruzzaman Khan ◽  
Md Rais Uddin Mian ◽  
Rahat Ahmed Juice
Keyword(s):  
Technical Efficiency ◽  
Production Cost ◽  
Stochastic Frontier ◽  
Market Price ◽  
Total Production ◽  
Policy Options ◽  
Financial Benefit ◽  
Stochastic Frontier Production Function ◽  
High Production Cost ◽  
Frontier Production Function

Tilapia (Oreochromis niloticus) is known as ‘fish for the poor’ due to its low market price. However, the question remains about the sustainability of this species because of high production cost and lower market price.  Therefore, this study examined the financial profitability, technical efficiency and tried to find out the policy options for increasing the financial benefit of fish farmers. A total of 250 tilapia fish farmers were selected from seven tilapia producing areas of Bangladesh. To fulfill the objectives of this study, profitability, stochastic frontier production function, and sensitivity analysis were employed.  Considering all selected farmers, tilapia farming found a profitable business where undiscounted BCR was only1.11. Among all cost items, only feed consists of 70 percent of the total production cost.  The mean technical efficiency level of tilapia fish farmers was 85 percent, implies that by operating at full technical efficiency levels, tilapia yield could be increased from the current level of 20.98 to 24.13 tons per hectare and efficient farmers found more productive than inefficient farmers. Farmer’s financial benefit can be increased by reducing the feed price, decreasing FCR or increasing the output price. Feed price reduction or enhance the quality of feed could be effective policy options for sustaining the tilapia farming. J. Bangladesh Agril. Univ. 17(1): 92–98, March 2019

scholarly journals PENGARUH TINGKAT PENERAPAN TEKNOLOGI PENGELOLAAN TANAMAN TERPADU (PTT) TERHADAP EFISIENSI TEKNIS USAHATANI PADI

2018 ◽  
Vol 6 (2) ◽  
pp. 121
Author(s):  
Mira Apriani ◽  
Dwi Rachmina ◽  
Amzul Rifin
Keyword(s):  
Technical Efficiency ◽  
Technology Implementation ◽  
Formal Education ◽  
Stochastic Frontier ◽  
Production Capacity ◽  
Farm Income ◽  
Rice Farming ◽  
Linear Regression Models ◽  
Scoring Method ◽  
Α Level

<em><span>Domestic rice needs will continue to increase, it is estimated that national rice needs in 2035 will reach 36 million tons. Meanwhile, national rice production capacity is experiencing slow growth or tends to be stagnant. So that it needs an increase in productivity or technical efficiency through the Integrated Crop Management</span><span lang="IN"> (ICM)</span><span> model approach. This study aims to analyze the level of rice ICM technology implementationand the factors that influence the level of rice ICM technology implementation and its effect on the technical efficiency of rice farming in Bogor Regency. Determination of the sample using purposive sampling method, a sample of 60 farmers in the District of Cariu, Pamijahan, and Leuwisadeng </span><span lang="IN">of </span><span>Bogor Regency were analyzed using the scoring method, multiple linear regression models, and the stochastic frontier analyze method. The results showed the level of rice ICM technology implementation in Bogor Regency was classified as moderate (71</span><span lang="IN">,</span><span>54 percent), while the technology component with the highest level of application was jajar legowo spacing of 2:1 (98</span><span lang="IN">,</span><span>50 percent) and the lowest was the use of manure (27 percent). Factors that influence the level of rice ICM technology implementation at α level of 5 percent are non-farm income with an estimated value of 3</span><span lang="IN">,</span><span>318, intensity of SLPTT and non SLPTT training with an estimated value of 2</span><span lang="IN">,</span><span>236, and dummy farmer's employment status with an estimated value of 2</span><span lang="IN">,</span><span>127. While the experience factor of farming with an estimated value of 0</span><span lang="IN">,</span><span>110 and the duration of formal education of farmers with an estimated value of 0</span><span lang="IN">,</span><span>403 has an effect on the level of α of 10 percent. </span><span lang="IN">T</span><span>he level of rice ICM technology implementation with an estimated value of -0</span><span lang="IN">,</span><span>0855 and farmer access to obtain credit with an estimated value of -0</span><span lang="IN">,</span><span>0348 has an effect on the technical efficiency of rice farming at α level of 1 percent, while the land ownership status with an estimated value is -0</span><span lang="IN">,</span><span>2527 at α level of 10 percent. The average level of technical efficiency of rice farming in Bogor Regency is not optimal (67</span><span lang="IN">,</span><span>4 percent), this is due to, among others, the application of technological components that are still relatively low or not as recommended by </span><span lang="IN">ICM</span><span>. Therefore, efforts are needed to increase motivation and farmer participation in implementing </span><span lang="IN">ICM</span><span> technology optimally and sustainably to help meet national rice needs.</span></em>

scholarly journals PROFITABILITAS DAN EFISIENSI TEKNIS USAHATANI BAWANG MERAH DI KABUPATEN BANTUL DAN KABUPATEN NGANJUK

2014 ◽  
Vol 11 (1) ◽  
pp. 35
Author(s):  
Muhammad Fauzan
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Primary Data ◽  
Farm Income ◽  
Net Income ◽  
Gross Margin ◽  
Stochastic Frontier Production Function ◽  
Return On Capital ◽  
Frontier Production Function ◽  
Structured Questionnaire

<p><em>The board objective of study is to evaluate the profitability and technical efficiency of shallot farming in Bantul and Nganjuk regency. The specific objectives are to (1) Evaluate the profitability of shallot farmers in the study area and (2) Determine the levefl of technical efficiency of shallot farmers. The primary data used for the study obtained using structured questionnaire administered to 60 selected farmers. Gross margin, net farm income, gross ratio, operation ratio, return on capital invested, and stochastic frontier production function were used to analyze the data. The study showed that (1) shallot farming in Bantul and Nganjuk regency was profitable with net income Rp 20.903.711,00/ha and Rp 35.294.540,00/ha, (2) the distribution of the technical efficiency indices revealed that the most of the farmers were technically efficient with mean TE Index of 0.802 (Bantul) and 0,929 (Nganjuk), (3) the result of the inefficiency model showed that years of education (Bantul) and age (Nganjuk) significantly increased the farmers technical efficiency.     </em></p><p> </p><p><em>Tujuan utama penelitian ini adalah mengevaluasi profitabilitas dan efisiensi teknis usahatani bawang merah di Kabupaten Bantul dan Kabupaten Nganjuk. Secara spesifik, penelitian ini bertujuan untuk (1) mengetahui profitabilitas usahatani bawang merah di lokasi penelitian dan (2) mengetahui tingkat efisiensi teknis petani bawang merah. Penelitian ini mengggunakan data primer hasil survey pada 60 petani responden dengan menggunakan kuisioner yang telah dirancang sesuai dengan tujuan penelitian. Gross margin, net farm income, gross ratio, operation ratio, return on capital invested, dan fungsi produksi frontier stokastik digunakan dalam penelitian ini untuk menganalisis data. Hasil penelitian menunjukkan bahwa (1) usahatani bawang merah di Kaupaten Bantul dan Kabupaten Nganjuk menguntungkan untuk dijalankan dengan net income Rp 20.903.711,00/ha and Rp 35.294.540,00/ha, (2) distribusi tingkat efisiensi teknis menunjukkan bahwa mayoritas petani telah mencapai tingkat yang efisien dengan rata-rata TE Index 0,802 (Bantul) dan 0,929 (Nganjuk), (3) hasil analisis model in-efisiensi menunjukkan bahwa tingkat pendidikan (Bantul) and umur (Nganjuk) berpengaruh signifikan terhadap peningkatan efisiensi teknis petani.</em></p>

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