scholarly journals Does agricultural cooperative membership impact technical efficiency of maize production in Nigeria: An analysis correcting for biases from observed and unobserved attributes

PLoS ONE ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. e0245426
Author(s):  
Kehinde Oluseyi Olagunju ◽  
Adebayo Isaiah Ogunniyi ◽  
Zainab Oyetunde-Usman ◽  
Abiodun Olusola Omotayo ◽  
Bola Amoke Awotide
Keyword(s):  
Technical Efficiency ◽  
Agricultural Development ◽  
Smallholder Farmers ◽  
Sample Selection ◽  
Agricultural Cooperatives ◽  
Stochastic Production Frontier ◽  
Maize Production ◽  
Multiple Production ◽  
Agricultural Cooperative ◽  
The Impact

The formation of agricultural cooperatives has been widely promoted as an agricultural development policy initiative to help smallholder farmers cope with multiple production and marketing challenges. Using a nationally representative survey dataset of smallholder maize producers from rural Nigeria, this study assesses the impact of agricultural cooperative membership on technical efficiency (TE). We based our estimation approach on the combination of a newly developed sample selection stochastic production frontier model with propensity score matching to control for possible selectivity biases from both observables and unobservables. We estimate stochastic meta-frontiers to examine TE differences between cooperative members and non-members. Our results reveal that TE levels of members are consistently higher than that of non-members. This calls for continued policy incentives targeted at encouraging farmers to form as well as participate in agricultural cooperatives.

scholarly journals Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis

2020 ◽  
Vol 12 (19) ◽  
pp. 8194
Author(s):  
Ruopin Qu ◽  
Yongchang Wu ◽  
Jing Chen ◽  
Glyn D. Jones ◽  
Wenjing Li ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Direct Marketing ◽  
Stochastic Frontier ◽  
Agricultural Cooperatives ◽  
Stochastic Production Frontier ◽  
Frontier Analysis ◽  
Agricultural Cooperative ◽  
Marketing Service ◽  
The Impact

The impact of agricultural cooperatives on apple farmers’ technical efficiency (TE) in China was examined. The cooperatives were divided into two groups: a collective marketing group for farmers and an equivalent non-marketing group that did not provide a marketing service, although other functions remained the same. Using the propensity score matching (PSM) procedure and stochastic production frontier (SPF) modelling, cooperatives’ key functions that potentially increase farmers’ TE can be identified. The results indicate that membership of either group is positively related to yield. However, cooperatives that were not engaged in marketing achieved higher TE than non-members. This suggests that policy makers should encourage cooperatives to focus on activities that do not include direct marketing to increase TE in apple production in China.

Does cooperative membership impact the yield and efficiency of smallholder farmers? Evidence from potato farmers in Mongolia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samuel Ahado ◽  
Jiří Hejkrlík ◽  
Anudari Enkhtur ◽  
Tserendavaa Tseren ◽  
Tomáš Ratinger
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Irrigation Management ◽  
Potato Production ◽  
Transfer Of Knowledge ◽  
Content Type ◽  
Farm Work ◽  
Agricultural Cooperative ◽  
Education Participation ◽  
The Impact

PurposeThe purpose of this paper is to examine the impact of agricultural cooperative membership on potato production and technical efficiency.Design/methodology/approachA combination of propensity score matching technique and sample selection stochastic frontier framework that addresses potential selection bias due to observable and unobservable attributes is used to estimate the effect of participation between cooperative members and non-members. Using a stochastic meta-frontier approach, the technical efficiency of farmers was estimated and compared.FindingsThe empirical results show that the effect of participation in agricultural cooperatives is associated with increased yield and technical efficiency. A comparison of group-specific frontiers indicates that cooperative members perform better than non-members. Cooperative membership decisions is significantly associated with household and farm characteristics (e.g. education, participation in off-farm work, total farmland, distance to market and geographic location).Practical implicationsThe findings of this study demonstrate that cooperative organisations can be an important tool to enhance the productivity and efficiency of smallholder farmers. Successful cooperative models together with training programs designed to enlighten farmers on the importance and tangible benefits of collective action should be used to enlarge participation in cooperative organisations. In addition, governments and development agencies should implement targeted investment and capacity building programs related to irrigation management, gender-sensitive awareness and development of the internal institutional mechanisms in cooperatives for the transfer of knowledge and mutual learning so that all members benefit from cooperatives.Originality/valueDespite the pervasive evidence of the impact of cooperatives on productivity and technical efficiency in the Asian region, this study is probably the first attempt in the crop sector in Mongolia. It provides a rigorous empirical analysis of the impact of agricultural cooperative membership on potato production and technical efficiency through a counterfactual design.

Participation in farmers' organization and production efficiency: empirical evidence from smallholder farmers in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Subir Bairagi ◽  
Khondoker Abdul Mottaleb
Keyword(s):  
Production Efficiency ◽  
Service Providers ◽  
Rice Yield ◽  
Smallholder Farmers ◽  
Sample Selection ◽  
Primary Data ◽  
Stochastic Production Frontier ◽  
Content Type ◽  
Rice Farmers ◽  
The Impact

PurposeFarmer organizations (FOs) can elevate many of the production- and marketing-related challenges by ensuring access to technology, farming information and loan for inputs and mechanization. This study assesses the major factors that affect the participation in FOs by the smallholder rice farmers in Bangladesh and evaluates the impacts of the participation on rice yield and production efficiency.Design/methodology/approachThe present study used primary data collected from 1,000 smallholder rice farmers in northwest Bangladesh, consisting of 250 farmers those participated in an organization. This study utilized a sample selection stochastic production frontier (SPF) method, a combination of the conventional SPF and the Heckman's sample selection model, to control for biases stemming from observed and unobserved attributes.FindingsThis study demonstrates that participation in an organization is significantly affected by smallholder rice farmers' education, occupation, family size, household income, land ownership and the location where they reside. At the same time, the participation status affects the productivity of smallholder farmers. Findings indicate that farmers who participated in an organization had higher rice yield (11% more) and were technically more efficient (1.4 percentage points higher) compared to farmers who did not participate.Research limitations/implicationsSince this study was carried out with representative sampled farmers from northwest Bangladesh, the findings may not represent all farmers' perceptions of FOs in the country.Originality/valueEven though more than 200,000 FOs are currently in operation, knowledge regarding the effectiveness of Bangladesh's FOs is limited. Notably, this study used a relatively new method, sample selection SPF model, to investigate the impact of FOs on the production efficiency of smallholder rice farmers in northwest Bangladesh. Therefore, this study contributes to the literature in elucidating the factors affecting participation in FOs and its impact on rice yield and efficiency. Since FOs have been somewhat ineffective in their role as service providers in Bangladesh, this study’s results will guide policymakers to intervene more successfully regarding the changes needed.

scholarly journals Resource Use Efficiency as a Climate Smart Approach: Case of Smallholder Maize Farmers in Nyando, Kenya

Environments ◽  
2018 ◽  
Vol 5 (8) ◽  
pp. 93 ◽  
Author(s):  
Mohamud Salat ◽  
Brent Swallow
Keyword(s):  
Soil Carbon ◽  
Technical Efficiency ◽  
Resource Use ◽  
Soil Conservation ◽  
Smallholder Farmers ◽  
Conservation Practices ◽  
Resource Use Efficiency ◽  
Maize Production ◽  
Use Efficiency ◽  
The Impact

To simultaneously enhance agricultural productivity and lower negative impacts on the environment, food systems need to be much more efficient in using resources such as land, water, and fertilizer. This study examines resource use efficiency of maize production among smallholder farmers in Nyando, Kenya. The main objective is to assess the degree of technical efficiency of smallholder farmers and identify the impact of so-called “climate smart practices” on technical efficiency. The method of Stochastic Frontier Analysis is used to simultaneously estimate a stochastic production frontier and a technical inefficiency effect model. Data for 324 subplots farmed by 170 households were available for this analysis. The study reveals that maize production in Nyando is associated with mean technical efficiency of 45% and that soil conservation practices such as residue management, legume intercropping, and improved varieties significantly increase farmers’ technical efficiency. Soil carbon is found to be a critical factor of production. These results imply that there is potential to more than double production using the same resources and that soil conservation practices can be very “climate smart,” at once increasing soil carbon, production, climate resilience, and technical efficiency.

scholarly journals Land Tenure and Technical Efficiency of Smallholder Tea Producers: The Case of Ya’An City, China

2021 ◽  
Vol 24 (2) ◽  
pp. 21-34
Author(s):  
Abrham Tezera Gessesse ◽  
Ge He
Keyword(s):  
Technical Efficiency ◽  
Land Tenure ◽  
Smallholder Farmers ◽  
Farm Size ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Tenure Security ◽  
Tea Production ◽  
Stochastic Production ◽  
The Impact

70 percent of the world and 80 percent of China’s tea production produced by smallholder farmers. However, the tea production per unit area significantly unchanged in the past decades. Understanding factors affecting the technical efficiency of smallholder tea producers is very important to maximize tea production. Aimed at examining the impact of land tenure security and land certification on smallholder tea producers’ technical efficiency, this paper employs the Cobb- Douglas Stochastic Production Frontier (CD-SPF) and Translog Stochastic Production Frontier (TL- SPF) methods for Maximum Likelihood Estimate (MLE) with cross-sectional data collected from 161 randomly selected tea farm plot households in Ya’an city, China. We found that an 1 mu (0.067 ha) increase in the tea farm size will produce a 1.086 tea yield advantage for smallholder tea farmers. We also found that the values of input-output elasticity of land size, household income and labor decrease in turn with 0.144, 0.105 and 0.010 respectively. The results show that farm size is a more crucial input for tea production than income and labor. Moreover, we identify the determinations which enhance the technical efficiency of smallholder tea producers such as land certification, land tenure security age, education, farming experience, total farm size holding, chemical fertilizer, plot steepness and plot distance from home and find that the elimination of land tenure insecurity through land registration and certification makes a clear difference in that. We therefore recommend that tea farmland need to expand and enlarge for better production through comprehensive land consolidation program. We also suggest endorsing the land certificates of all land holders as this will help improve land tenure security, enhance technical efficiency and promote the tea production of smallholder producers.

scholarly journals The Impact of GAP-SOP on The Production and Technical Efficiency of Garlic in Temanggung Regency

Agro Ekonomi ◽  
2019 ◽  
Vol 29 (2) ◽  
pp. 299
Author(s):  
Aristiyana Nur Tri Wardani ◽  
Dwidjono Hadi Darwanto
Keyword(s):  
Technical Efficiency ◽  
Sample Selection ◽  
Participation Rate ◽  
Simple Random Sampling ◽  
Technical Inefficiency ◽  
Factors Affecting ◽  
Average Value ◽  
Central Java ◽  
Efficient Level ◽  
The Impact

Temanggung regency is the largest garlic producer region in Central Java Province. However, its productivity is still low compared to the other regencies since garlic farmers have not achieved technical efficiency and limitary garlic farming technology.  Hence, it is necessary to investigate whether the input application in the process of garlic production has been at technically efficient level or not. This research aims to determine factors affecting garlic production, the level of technical efficiency and technical inefficiency of garlic farming in Temanggung Regency. The location of the research was determined by using purposive sampling. The sample selection used simple random sampling method with  60 garlic farmers as the respondent. The result shows that production factors such as land area, garlic seed, ZK fertilizer, pesticide and the level of application of garlic GAP-SOP have significant effect on garlic production. The average value of farmer’s technical efficiency is 0,811. It means that respondents in this study have been technically efficient. The socio-economic factors affecting technical inefficiency are the age, the number of worker in a family, the level of education and participation rate within farmer group. The improvement effort of technical efficiency of garlic farming can be done by optimizing the contribution of farmer group as a facility to access information. Therefore, it is able to improve the skills and knowledge of farmers to farm garlic.

scholarly journals Membangun Koperasi Pertanian Berbasis Anggota di Era Globalisasi

2014 ◽  
Vol 4 (1) ◽  
pp. 98
Author(s):  
Susi Widjajani ◽  
Siti Noor Hidayati
Keyword(s):  
Agricultural Development ◽  
National Income ◽  
Network Communication ◽  
Agricultural Cooperatives ◽  
Strategic Role ◽  
The Impact

<p><span><em>The purpose of writing this article is to review the development of </em><span><em>agricultural cooperatives based members in the globalization. Given the national </em><span><em>economic developmentof agricultural development a high priority. And in this </em><span><em>agricultural development cooperative strategic role. </em></span></span></span></span><em>Agricultural cooperatives is the largest cooperative in Indonesia, but the </em><em>contribution to the national income is the lowest. Infact, agricultural cooperatives </em><em>(KUD) actually for med from the top (Government/Employers) and not in bottom of </em><em>the community. Agricultural cooperatives lost their identity due to the impact of the </em><em>on going globalization. </em><em>In such conditions, the need for macro policies conducive to the development </em><em>of agricultural cooperatives in Indonesia, a complete under standing of the condition </em><em>of cooperatives, the need for strategic step simprove the internal conditions of the </em><em>cooperative, and the need for network communication and cooperation with the </em><em>stakeholders.</em></p>

scholarly journals Profiling Smallholder Farmers Goals and Aspirations for Enhanced Agricultural Development: a Case of Smallholder Maize Farmers

2017 ◽  
Vol 9 (4) ◽  
pp. 98
Author(s):  
Fakunle Olufemi Oyedokun ◽  
Zhou Leocadia
Keyword(s):  
Technical Efficiency ◽  
Agricultural Development ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Principal Component ◽  
Descriptive Statistics ◽  
Policy Makers ◽  
Frontier Analysis ◽  
The Mean

The intervention of government in the development of smallholder agriculture is still grappling and has not yielded the desired results, despite the huge investment from government. This has been a source of concern to government and policy makers. This paper sought to analyze the socio-demographic features of the smallholder maize farmers; profile the goals and aspirations of these farmers; and lastly, to analyze the technical efficiency of maize farmers. Qamata and Tyefu in the Transkei and Ciskei homelands, respectively were purposively chosen for the study. Descriptive statistics; Principal component analysis (PCA) and stochastic frontier analysis (SFA) were used in the analysis. The result shows, that majority (66%) of the farmers were males with an average range of 61 years old. On the other hand, the PCA indicated that there is a variation between predicted goals and aspiration among maize farmers. The SFA result showed that farmers were efficient. The mean technical efficiency estimates up to 100%, an indication that farmers are more efficient in the usage of factors of production at their disposal in the study area. This implies that smallholder maize farming is lucrative due to its profit-making potentials. Moreover, this is a clear indication that more income and wealth is generated thereby implying that it is strategic and pivotal in improving farmers’ livelihoods

scholarly journals Do financial constraints impact the technical efficiency of agricultural cooperatives? evidence from Brazil

2021 ◽  
Vol 40 (3) ◽  
pp. 79-95
Author(s):  
Vanessa Schaefer ◽  
João Paulo Augusto Eça ◽  
Marcelo Botelho da Costa Moraes ◽  
Amaury José Rezende
Keyword(s):  
Empirical Evidence ◽  
Technical Efficiency ◽  
Financial Constraints ◽  
Foreign Capital ◽  
Agricultural Cooperatives ◽  
Financial Constraint ◽  
Theoretical Assumptions ◽  
Theoretical Predictions ◽  
The Impact ◽  
The Relationship

Agricultural cooperatives have the main goals of meeting the economic, social and cultural needs of their members. Although they do not seek profits, they must be competitive since they compete with other cooperatives and companies in the market. In this sense, the search for technical efficiency to give cooperatives a better market position contrasts with the difficulty these organizations face in obtaining foreign capital to enable greater investments. There is little empirical evidence, however, of the relationship between financial constraints and technical efficiency in these organizations. According to theoretical assumptions, this relationship could be positive or negative. Thus, this paper analyzes the impact of financial constraints on the technical efficiency of Brazilian agricultural cooperatives. For this, we used two metrics to measure financial constraint and analyzed panel data on 68 Brazilian agricultural cooperatives for the 2005-2014 period. Despite the theoretical predictions, our main results suggest there is no evidence that financial constraints affect technical efficiency. This result can be explained by the characteristics attributed to Brazilian cooperatives, that is, the fact they deal with different commodities (multi-purpose) and do not have strong demand for investments (technology). This paper contributes to the literature both by providing new empirical evidence regarding the relationship between technical efficiency and financial constraints and by introducing a new metric for analyzing financial constraint in the context of cooperatives.

scholarly journals ENVIRONMENTAL EFFICIENCY ANALYSIS IN RICE PRODUCTION: A CASE STUDY IN TRA VINH PROVINCE OF VIETNAM

2021 ◽  
Vol 56 (4) ◽  
pp. 311-322
Author(s):  
Truc-Linh Le ◽  
Nga Huynh ◽  
Thi-Thuy-Hai Luu
Keyword(s):  
Mekong Delta ◽  
Efficiency Score ◽  
Rice Production ◽  
Environmental Efficiency ◽  
Agricultural Cooperatives ◽  
Stochastic Production Frontier ◽  
Agricultural Cooperative ◽  
Rice Farmers ◽  
Study Results ◽  
Efficiency Estimation

Rice farmers do not recognize the negative impacts of overusing agricultural chemicals in farming activities on the environment. Hence, this study aimed to estimate technical and environmental efficiency for the rice producers in Tra Vinh province of Vietnam using the translog stochastic production frontier approach. Nutrients of NPK and pesticide cost were assumed to be environmentally detrimental inputs for environmental efficiency estimation. Empirical results indicated that the mean technical efficiency score was 0.74 showing technical inefficiency in the sample farms. The average environmental efficiency indexes were 0.55 for two detrimental inputs, 0.51 for nutrients of NPK, and only 0.10 for pesticide alone, indicating that the rice farms have huge potential to decrease the use of these inputs. The reduction in fertilizer, especially pesticide use, will help the rice farmers achieve higher profitability and be more sustainable. Regarding determinants of farms’ efficiencies, the regression analysis revealed that participating in agricultural cooperatives has emerged to be a favorable factor associated with technical and environmental efficiency, suggesting that the development of agricultural cooperative models should be prioritized to promote and encourage farmers’ participation. The present study results could be seen as key points for farmers' adjustment in rice production, leading to a safer environment and a driving force in the sustainable agriculture development in the Mekong Delta of Vietnam.

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