scholarly journals Farm level allocative efficiency of rice production in Gulu and Amuru districts, Northern Uganda

2019 ◽  
Vol 7 (1) ◽  
Author(s):  
Daniel Micheal Okello ◽  
Jackline Bonabana-Wabbi ◽  
Basil Mugonola
Keyword(s):  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Minimum Cost ◽  
Rice Production ◽  
Farm Size ◽  
Northern Uganda ◽  
Smallholder Farming ◽  
Cross Sectional ◽  
Farm Level ◽  
Allocative Inefficiency

Abstract Smallholder farming, predominant in Uganda, is characterized by low productivity for most crops including rice which is gaining prominence as both a food and income crop. The low productivity is mostly attributed to allocative inefficiency. Allocative efficiency (AE) considers farmers’ ability to allocate resources efficiently, by producing the maximum possible output at minimum cost. Increasing AE requires an understanding of the specific sources of inefficiency that vary across farm enterprises, geographically and temporally. A cross-sectional study was carried out in Gulu and Amuru districts of Northern Uganda to assess the sources of farm-level allocative inefficiency in rice production using the stochastic frontier approach. Data were collected from a random sample of 200 smallholder rice farmers. Results show that the mean AE was 75%. Household size, distance to trading centre, farm size, number of crop enterprises, use of hired labour, use of ox-plough, and access to credit had significant effects on AE. We recommend adoption of technologies such as the use of ox-ploughs and reallocation of farm resources especially labour.

scholarly journals Impact of Irrigation Ecology on Rice Production Efficiency in Ghana

2018 ◽  
Vol 2018 ◽  
pp. 1-10 ◽  
Author(s):  
John Kanburi Bidzakin ◽  
Simon C. Fialor ◽  
Dadson Awunyo-Vitor ◽  
Iddrisu Yahaya
Keyword(s):  
Economic Efficiency ◽  
Production Efficiency ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Rice Production ◽  
Cross Sectional ◽  
Rice Farmers ◽  
Effect Regression ◽  
The Impact

Irrigation production is a means by which agricultural production can be increased to meet the growing food demands in the world. This study evaluated the effect of irrigation ecology on farm household technical, allocative, and economic efficiency of smallholder rice farmers. Cross-sectional data was obtained from 350 rice farmers across rain fed and irrigation ecologies. Stochastic frontier analyses are used to estimate the production efficiency and endogenous treatment effect regression model is used to estimate the impact of irrigation ecology on rice production efficiency. The impact of irrigation ecology on technical efficiency is about 0.05, which implies farmers producing under irrigation ecology are more technically efficient in their rice production than those in rain fed production. The impact of irrigation ecology on allocative efficiency is about 0.33, which shows that farmers participating in irrigation farming are more allocatively efficient in their rice production than those in rain fed production. The impact on economic efficiency is about 0.23, meaning that farmers participating in irrigation farming are more economically efficient in their rice production than those in rain fed production. Irrigation ecology has positive impact on production efficiency; hence farmers should be encouraged to produce more under irrigation for increased yield and profit.

scholarly journals Improving Soya Bean Productivity for Poverty Alleviation and Food Security in Upper West Region of Ghana: A Resource Use Efficiency Analysis

2021 ◽  
Vol 36 (1) ◽  
pp. 175
Author(s):  
Francis Akabo Asodina ◽  
Faizal Adams ◽  
Fred Nimoh ◽  
Camillus Abawiera Wongnaa ◽  
Robert Aidoo ◽  
...  
Keyword(s):  
Resource Use ◽  
Stochastic Frontier ◽  
Soya Bean ◽  
Farm Size ◽  
Resource Use Efficiency ◽  
Smallholder Farming ◽  
Cross Sectional ◽  
Use Of Resources ◽  
West Region ◽  
Use Efficiency

Soya bean is an important economic crop for smallholder farming systems in Upper West Region of Ghana. In spite of the introduction of modern and improved soya bean production technologies in Ghana, the productivity of the crop in the region is still low. Given that inefficient use of resources is a potential course of low yields, this study analyses the resource use efficiency of soya bean production. Using cross-sectional data collected from 271 soya bean farmers from the Upper West Region of Ghana, the study employed the Stochastic Frontier Translog Production Function as well as the ratio of Marginal Value Product to Marginal Factor Cost to understand the resource use efficiency of soya bean farmers in the region. The empirical results showed that the estimated coefficients of soya bean seeds, labor and farm size were significant and positively related to soya bean output even though fertilizer input was surprisingly significantly and negatively related to the output of soya bean. Also, resources employed in soya bean production were found not to be efficiently utilized as they were underutilized, indicating that yield and profit could be improved with optimal use of production inputs. Finally, the paper revealed that access to soya bean threshers is the most important constraint faced by farmers in the region. For the region’s soya bean yield to be improved, government and development organizations should assist soya bean farmers by removing major bottlenecks to acquisition of resources required for the production and postharvest handling of the crop.

scholarly journals Allocative Efficiency Analysis of Capsicum Cropping System under Tunnels

2021 ◽  
Vol 17 ◽  
pp. 502-509
Author(s):  
Hina Fatima ◽  
Lal K Almas ◽  
Bushra Yasmin
Keyword(s):  
Stochastic Frontier Analysis ◽  
Cropping Systems ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Cropping System ◽  
Minimum Cost ◽  
Optimum Level ◽  
Frontier Analysis ◽  
Farm Inputs ◽  
Allocative Inefficiency

The focus of this study was to analyze the allocative efficiency of the capsicum cropping system under tunnels. The data is collected from those farmers that were cultivating the capsicum crops under the tunnels in Pakistan. Cultivation of the crops under tunnels has a rising trend in Pakistan. To achieve the best possible output with a minimum cost of newly opted farm technology can be beneficial if farmers have proper skill and know-how regarding the application of balanced use of inputs. The sample size was around 150 capsicum farms. The Stochastic Frontier Analysis (SFA) was used to examine the allocative efficiency of capsicum farms in Pakistan. The result of the study demonstrated that the average allocative efficiency of capsicum cropping systems under tunnels in Pakistan was around 65%. Around 35% of allocative inefficiency is present in the capsicum cropping system. Mismanagement of resources related to the utilization of farm inputs i one of the main reasons for allocative inefficiency. After removing the mismanagement of resources, most farms have another way of reducing allocative inefficiency. It is linked with reallocating inputs or changing the input combination used, to achieve an optimum level of capsicum output at a given level of input prices. Hence, the objective of adoption of advanced farm technologies along with balanced application of farm inputs will result in higher farm productivity and allocative efficiency.

A Pragmatic Study for Enhancing Agricultural Efficiency through Labor Freedom

2021 ◽  
Vol 11 (4) ◽  
pp. 279-290
Author(s):  
Rajni Kapoor ◽  
Nimai Das
Keyword(s):  
Property Rights ◽  
Development Policy ◽  
Agricultural Sector ◽  
Economic Status ◽  
Allocative Efficiency ◽  
Positive Association ◽  
Farm Size ◽  
Tobit Regression ◽  
Farm Level ◽  
Rural Workers

The study aims to explore labor freedom in the agricultural sector for enhancing the efficiency of farming through policy change towards assigning property rights, rental contracts, and better wage-employment options to rural workers. Labor freedom emphasizes land reform and development policy for improving the economic status and capabilities of rural workers. The paper assessed the labor freedom index, weighted through agricultural property rights, labor wage contracts, and rural development policy. Data envelopment analysis is used to assess farm-level efficiency under the framework of Tobit regression for different size-based farm categories. Farm-level information was collected through a primary survey of 336 rural households of an advanced agricultural state in India. The study found a positive association between farm size and intensity of labor freedom, although the extent of freedom differs among farms. Size-specific variation was also observed for allocative efficiency such that marginal and medium-sized farms are more efficient than smaller ones. Tobit regression indicated labor freedom to be positively and significantly related to the efficiency of marginal, small and overall farms with enhancing efficiency of 25, 17 and nearly 20%, respectively; however, estimates of labor freedom insignificantly increased the efficiency of mediums farms, by 4.8%. This result suggests that labor freedom positive and significantly affects the efficiency of farms in general, and marginal and small farms in particular. Of course, the elasticity estimate of enhancing efficiency through labor freedom for medium farmers is found at a lower level.

scholarly journals Technical and Resource Use Efficiency of Urban Vegetable Farming in the Kumasi Metropolis: A Stochastic Frontier Approach

2018 ◽  
Vol 8 (2) ◽  
pp. 92-103
Author(s):  
Adams Abdulai ◽  
Simon Cudjoe Fialor ◽  
John Eudes Andivi Bakang ◽  
Emmanuel Tetteh Jumpah
Keyword(s):  
Job Search ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Productive Efficiency ◽  
Extension Agents ◽  
Vegetable Production ◽  
Stochastic Frontier Approach ◽  
Cross Sectional ◽  
Vegetable Farmers ◽  
The Government

The changing food demands by the teeming urban population, job search, and sector profitability have made vegetable production indispensable as it contributes to increased incomes and livelihoods of urban dwellers.This study investigated the current level of productive efficiency (technical and allocative) of vegetable farmers in the Kumasi Metropolis using cross-sectional data obtained from 135 sampled farmers using a semi-structured questionnaire. Data analysis was conducted using the stochastic frontier approach to estimate firm-specific technical efficiencies and the factors that influence efficiency levels. The results show that inefficiency exists among the sampled vegetable farmers as they currently achieve an average technical efficiency score of 66.7%. Allocative efficiency estimates for land and labour revealed that both factors of production are over utilised by farmers. The age of the farmer is the main socio-economic determinant of technical efficiency.The study recommends that farmers be educated on the correct use of inputs by extension agents. The government policy of recruiting community extension agents under the ‘planting for food and jobs’ programme is in line with addressing inefficiency in the production sector and should be promoted.

scholarly journals Factors Affecting Technical Efficiency of Rubber Smallholders in Negeri Sembilan, Malaysia

2017 ◽  
Vol 9 (5) ◽  
pp. 226
Author(s):  
A. Aliyu ◽  
Ismail Abd Latif ◽  
Mad Nasir Shamsudin ◽  
Nolila Mohd Nawi
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Likelihood Function ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Farm Size ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
The Mean ◽  
Size Task

The main objective of the study was to figure out, identify and analyse the technical efficiency of rubber smallholders’ production in Negeri Sembilan, Malaysia. Multi-stage data collection procedures, comprising both purposive and random sampling techniques, were used. Using structured questionnaires, farm-level information with cross sectional data from five districts of Negeri Sembilan, were employed in the study. A parametric Stochastic Frontier Analysis (SFA), with a transcendental logarithmic (Translog) functional form, was used in the study. The descriptive statistics results revealed that, the mean rubber yield was 5465 kg while that of the seven inputs used include 1.2 ha, 602.7, 2.33, 363.6 kg, 13.0 lit, 13.2 man days and 2.47 respectively for farm size, task, farm tools, fertilizer, herbicides, labour and rubber clones.The inferential statistics showed that, the mean technical efficiency was found to be 0.73 with a standard deviation of 0.089. Thus, this translates that 27% accounted for technical inefficiency. Both the sigma square and gamma coefficients were found to be statistically significant at 1% level. The Log Likelihood Function (LLF) and the Log Rati (LR) test were found to be respectively 167.7 and 34.07. The results further revealed that, although none of the farms were found to be on the frontier, however, 9 farms were very near the frontier with efficiency score range between 0.90-0.99. And twenty (20) firms have range 0.80-0.90. Race, Tapping experience, household number and extension agent’s visits were found to be technically significant and are thus critical in determining technical efficiency of rubber smallholders in Negeri Sembilan, Malaysia.

scholarly journals Cassava Production Efficiency in Southern Ethiopia: The Parametric Model Analysis

2021 ◽  
Vol 5 ◽  
Author(s):  
Alula Tafesse ◽  
Bekele Mena ◽  
Abrham Belay ◽  
Ermias Aynekulu ◽  
John W. Recha ◽  
...  
Keyword(s):  
Production Efficiency ◽  
Formal Education ◽  
Stochastic Frontier ◽  
Household Head ◽  
Raw Material ◽  
Production Model ◽  
Farm Size ◽  
Southern Ethiopia ◽  
Cross Sectional ◽  
Cassava Production

Due to capital constraints and land scarcity in developing countries, introducing new technology to boost productivity is difficult. As a result, working to improve cassava production efficiency is the best option available. Cassava is increasingly being used as a food source as well as an industrial raw material in the production of economic goods. This study estimates cassava production efficiency and investigates the causes of inefficiency in southern Ethiopia. Cross-sectional data from 158 households were collected using a systematic questionnaire. The Cobb-Douglas (CDs) stochastic frontier production model was used to calculate production efficiency levels. The computed mean result showed technical efficiency (TE), allocative efficiency (AE), and economic efficiency (EE) levels of 74, 90, and 66%, respectively. This demonstrated that existing farm resources could increase average production efficiency by 26, 10, and 34%, respectively. The study found that land size, urea fertilizer application, and cassava planting cut all had a positive and significant effect on cassava production. It was discovered that TE was more important than AE as a source of benefit for EE. Inefficiency effects modeled using the two-limit Tobit model revealed that household head age, level of education, cassava variety, extension contact, rural credit, off-farm activities involvement to generate income, and farm size were the most important factors for improving TE, AE, and EE efficiencies. As a result, policymakers in government should consider these factors when addressing inefficiencies in cassava production. It is especially important to provide appropriate agricultural knowledge through short-term training, to provide farmers with access to formal education, to access improved cassava varieties, and to support agricultural extension services.

scholarly journals Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act

2006 ◽  
Vol 38 (1) ◽  
pp. 213-224 ◽  
Author(s):  
Denis A. Nadolnyak ◽  
Stanley M. Fletcher ◽  
Valentina M. Hartarska
Keyword(s):  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
The United States ◽  
Farm Size ◽  
Quota System ◽  
Frontier Analysis ◽  
Farm Level ◽  
Peanut Production ◽  
Growing Conditions

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota's transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator's education and age, were also important for efficiency.

Agricultural credit and technical efficiency in Ghana: is there a nexus?

2016 ◽  
Vol 76 (2) ◽  
pp. 309-324 ◽  
Author(s):  
Abdul-Hanan Abdallah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Probit Model ◽  
Estimation Procedure ◽  
Farm Size ◽  
Agricultural Credit ◽  
Content Type ◽  
The Impact ◽  
Unique Dataset

Purpose – The purpose of this paper is to examine the impact of agricultural credit on technical efficiency of Ghanaian maize farmers using a unique dataset drawn from the database of Sub-Saharan Africa’s intensification of food crops agriculture (Afrint II) in 2008 period. Design/methodology/approach – In this study, a two-stage estimation procedure is employed to determine impact of agricultural credit on technical efficiency of Ghanaian maize farmers. The first stage utilized probit model while the second stage utilized stochastic frontier approach to estimate impact of credit on technical efficiency of Ghanaian maize farmers. Findings – The study found that farmers are producing below the frontier with average technical efficiency of 47 percent. Policy variables such as credit access; education, extension access and farm size played a stronger role in technical efficiency. Agricultural credit in particular increased technical efficiency by 3.8 percent. Research limitations/implications – The results should not be extended to the impact of agricultural credit on economic efficiency since the allocative efficiency component is not considered in this study. Also, caution should be taken in the interpretation of these results because the data could not permit the incorporation of all variables that might affect technical efficiency. Originality/value – The originality of the paper and its contribution to existing literature largely lies from the use of a unique dataset to find evidence of the impact of credit on efficiency in Ghana.

scholarly journals Technical and Economic Efficiency of Rice Production in Smallholder Farmers: The Case of Fogera District, Amhara Region, Northwestern Ethiopia.

2020 ◽  
Author(s):  
Astewel Takele ◽  
Ermias Tesfaye ◽  
Assefa Abelieneh
Keyword(s):  
Economic Efficiency ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Amhara Region ◽  
Cross Sectional ◽  
Technology Applications ◽  
Older Farmers ◽  
Female Headed Households ◽  
Supply Systems

Abstract In Ethiopia, rice is a recently introduced crop which is considered as the “Millennium crop” expected to hugely contribute food security. This paper seeks to measure the technical, allocative, and economic efficiency of rain-fed rice production and identify the factors that affect the efficiency of farmers in Fogera Districts of the Amhara Region. For the study, cross-sectional data were collected from a survey of 230 smallholder rice producers. The study used stochastic frontier production(SFA) and cost function to investigate the variations in the efficiency level of rice producers. The result indicated that the TE was higher as compared with the EE and AE. The average TE ranges between 24% and 93% with a mean of 70%. However, the mean of EE was 24.40 % and the AE 37.30%. Therefore, reduction of cost of production (such as improved input supply systems), warehouse facilities to keep produce and prevent the immediate sale of a product, introducing of a contract marketing system would improve the economic efficiency of the rice farming. Intervention on education and training on female-headed households, reducing family dependency, training of older farmers’ were vital to increase the EE of rice production.Similarly, improving the farmer’s education level to boost knowledge about new rice technology applications, and frequent training of farmers would enhance the TE of farmers in the study area.

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