scholarly journals Off-farm participation and technical efficiency among smallholder farmers in the Northern Region, Ghana

2017 ◽  
Vol 11 (1-2) ◽  
pp. 35-43 ◽  
Author(s):  
Gideon Danso-Abbeam ◽  
Brightina A.A. Abban ◽  
Samuel A. Donkoh
Keyword(s):  
Regression Model ◽  
Technical Efficiency ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Northern Region ◽  
Farm Size ◽  
Farm Income

The study aimed at investigating the effects of off-farm participation on technical efficiency of maize production in the Tolon district of the Northern Region, Ghana. The Logit regression model was used to analyze the determinants of off-farm participation while the stochastic frontier production function was used to model the determinants of maize output and technical efficiency. The empirical results from the logistic regression model indicate that age of farmer, educational attainment, farming experience, farm size, and previous farm income are significant drivers of farmers’ participation in off-farm activities. Farmers’ average technical efficiency level was 90.7% suggesting a 9.3% potential loss to inefficiency. Moreover, participation in off-farm activities had a negative influence on farmers’ technical efficiency level. The study, therefore, recommends that farm-level policy should be directed towards making the agricultural sector attractive by promoting investment and agricultural employment opportunities in the rural areas so as to ensure full commitment to farming activities. JEL code: Q22

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

scholarly journals A Stochastic Frontier Analysis of Technical Efficiency of Maize Production Under Minimum Tillage in Zambia

2015 ◽  
Vol 4 (2) ◽  
pp. 31 ◽  
Author(s):  
John Ng'ombe ◽  
Thomson Kalinda
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Agricultural Sector ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Household Head ◽  
Exponential Model ◽  
Farm Income ◽  
Frontier Analysis ◽  
Minimum Tillage

<p>Minimum tillage and other conservation agriculture practices are not only associated with income gains but are also claimed to be the panacea to the declining agricultural productivity and soil degradation problems in Africa and across the world. The few studies on technical efficiency related to the agricultural sector performance in Zambia have not attempted to determine how technically efficient smallholder farmers that produce maize under minimum tillage are. This study used stochastic frontier analysis based on both the half-normal and exponential model distributions on 2008 cross-sectional nationally representative data of 160 smallholder maize farm households that adopted minimum tillage in Zambia. Results indicate that maize farmers face increasing returns to scale (1.074) implying that there were opportunities for them to improve their technical efficiency as they were operating in stage I of their production functions. The half-normal and exponential model distributions indicate average technical efficiency scores of 60 and 71.7 percent, respectively. Their respective lowest efficiency scores were 9.3 and 8.5 percent. The highest efficiency scores for the half-normal and exponential model distributions were 89.3 and 90.9 percent. Maximum likelihood estimation results show that marital status, level of education of household head, square of household size, off farm income, agro-ecological region III, distance to vehicular road and access to loans are statistically significant factors that affect technical efficiency of smallholder maize farmers that practice minimum tillage in Zambia. The study calls for increased infrastructural development through construction of improved road network, schools and colleges in remote areas as a means to increasing accesss to knowledge and other agricultural services in order to enhance their technical efficiency levels. It also recommends promotion of minimum tillage practices in recommended agro-ecological regions to improve their technical efficiency. The study further acclaims for increased access to loans by smallholder maize farmers that practice minimum tillage as this would in one way induce them to invest in improved varieties and equipment that would help enhance their technical efficiency in Zambia.</p>

scholarly journals Irrigation, Technical Efficiency, and Farm Size: The Case of Brazil

2021 ◽  
Vol 13 (3) ◽  
pp. 1132
Author(s):  
Gabriel A. Sampaio Morais ◽  
Felipe F. Silva ◽  
Carlos Otávio de Freitas ◽  
Marcelo José Braga
Keyword(s):  
Technical Efficiency ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Farm Size ◽  
Small Farms ◽  
Stochastic Production Frontier ◽  
Farm Productivity ◽  
Agricultural Census ◽  
Large Farms ◽  
On Farm

In developing countries, irrigation can help to decrease poverty in rural areas through increased employment in the agricultural sector. Evidence shows that irrigation may increase farm productivity and technical efficiency. In this paper, we estimate the effect of irrigation on farm technical efficiency in Brazil using the 2006 Agricultural Census dataset on more than 4 million farms. We estimate a stochastic production frontier at farm level, considering potential selection bias in irrigation adoption. We find that farms using irrigation are on average 2.51% more technically efficient compared to rain-fed farms. Our findings also suggest that while small farms are more efficient than medium and large farms, the largest difference in technical efficiency between rain-fed and irrigated farms is among large farms. Our results indicate that policies that seek to support expansion of irrigation adoption has also the potential to achieve greater rural development given the estimated effects estimated in this paper among very small and small farms, which are more than 70% of the farms in Brazil.

scholarly journals Economic implication of contract farming on small-scale rice farmers in Kwara State, Nigeria

Agrosearch ◽  
2020 ◽  
Vol 19 (2) ◽  
pp. 26-40
Author(s):  
S.O. Akanbi ◽  
W.I. Alarape ◽  
O.S. Olatunji
Keyword(s):  
Technical Efficiency ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Farm Size ◽  
Farm Income ◽  
Small Scale ◽  
Economic Implication ◽  
Contract Farming ◽  
Productivity Level ◽  
Rice Farmers

This study examines the implication of contract farming on Olam Out-growers farming scheme in Kwara State, Nigeria. The objectives of the study are to determine the costs and returns to production of rice, assess the productivity level of rice, evaluate the technical efficiency of rice farm and identify the determinants of the technical inefficiency of the rice farms in contract farming. In this study, the average net farm income of the rice farmers under the scheme was N191,862.56 and the land productivity level was 2,006.04kg/ha. The technical efficiency of the rice farm was estimated using Cobb-Douglas Stochastic Frontier Production function which shows that likelihood coefficients for quality of seeds, hired labour and farm size were statistically significant at 1% level. Likewise, the determinants of technical efficiency among the farmers were household size and farming experience. The results further show that the contract farming scheme has a positive impact on the lives of rice farmers. Therefore, there is a need for partnership with private contract farming outfits in order to improve the current level of access to inputs by rice farmers. Keywords: Contract farming, Out-growers rice farmers, Technical efficiency, Farm income

scholarly journals DETERMINANTS OF AGRICULTURAL LOAN ACCESS FROM FORMAL SOURCES IN CROSS RIVER STATE CENTRAL AGRICULTURAL ZONE, NIGERIA

2018 ◽  
Vol 6 (5) ◽  
pp. 1-8
Author(s):  
Ettah O. I. ◽  
Ebu B. O.
Keyword(s):  
Regression Model ◽  
Rural Areas ◽  
Educational Level ◽  
Agricultural Development ◽  
Occupational Status ◽  
Sampling Technique ◽  
Farm Size ◽  
Farm Income ◽  
Cross River ◽  
Cross River State

Formal agricultural loan is an important tool in agricultural development and key to agricultural modernization.  This is because this source of loans enables farmers to have access to production inputs as well as adopt modern farm technologies. For agricultural development to be achieved and sustained, agricultural loan is required especially in the rural areas where majority of the populace are engaged in agriculture. The study set out to analyse the determinants of agricultural loan access from formal sources in Cross River State central agricultural zone, Nigeria and proffer policy recommendations based on the findings. A three-stage random sampling technique was employed to get a total of 100 respondents with the use of a detailed structured questionnaire. Descriptive statistics and multiple regression model were used to analyse the data. Result of the analysis showed that socio-economic characteristics of farmers such as: age, gender, occupational status, household size, educational level, farming experience, farm size, farm income, off- farm income, and labour use by respondents determined farmers access or otherwise to loan from formal sources and result of the logit regression model showed that age, education, farm size, collateral, farm income and cooperative membership all affected access of loan from formal sources positively, while farm experience do not determine access of loan from formal sources. The following recommendations were made: farmers in the area should be encouraged by government to enhance their educational level, more farmland should also be made available to increase their farm size and cooperative society’s membership should be encouraged by government.

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 of Smallholder Agriculture in Developing Countries: The Case of Ethiopia

Economies ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 34
Author(s):  
Anbes Tenaye
Keyword(s):  
Developing Countries ◽  
Technical Efficiency ◽  
Production Function ◽  
Fixed Effects ◽  
Unobserved Heterogeneity ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Household Head ◽  
Farm Size ◽  
Average Output

The efficient use of inputs is indispensable in many developing countries, such as Ethiopia. This study assesses the level and determinants of technical efficiency of smallholder farmers using the true fixed effects (TFE) model. The TFE model separates inefficiency from unobserved heterogeneity. Empirical data come from four rounds of panel data (1994–2009) from the Ethiopian rural household survey (ERHS). A one-step maximum likelihood estimator was employed to estimate the Cobb-Douglas stochastic frontier production function and factors influencing technical efficiency. The results indicated that the major variables affecting technical efficiency are policy responsive, albeit to varying degrees: education of the household head, family size, farm size, land fragmentation, land quality, credit use, extension service, off-farm employment, and crop share. The analyses also identify variables amenable to policy changes in the production function: labor, traction power, farm size, seeds, and fertilizer. The mean household-level efficiency for the surveyed farmers is 0.59, indicating that farmers could improve technical efficiency. This implies that smallholder farms in Ethiopia can reduce the input requirement of producing the average output by 41% if their operations become technically efficient. This study recommends that the above policy variables be considered to make Ethiopian smallholder farmers more efficient.

Does household engagement in concurrent business affect the farm size-technical efficiency relationship in grain production?

2019 ◽  
Vol 11 (1) ◽  
pp. 125-142 ◽  
Author(s):  
Min Zhong ◽  
Yuchun Zhu ◽  
Qihui Chen ◽  
Tianjun Liu ◽  
Qihua Cai
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Negative Relationship ◽  
Northern China ◽  
Farm Size ◽  
Farm Income ◽  
Content Type ◽  
Frontier Analysis ◽  
Two Factors

Purpose The purpose of this paper is to examine how households’ engagement in concurrent business (CB), which is measured by the contribution of off-farm income to household income, affects the farm size–technical efficiency (TE) relationship in Northern China. Design/methodology/approach This paper applies a stochastic frontier analysis method to analyze data on 1,006 rural households collected from four major wheat-producing provinces in Northern China, adopting a translog specification for the underlying production function. Findings The analysis yields three findings. First, the farm size–TE relationship is inverted U-shaped for all CB engagement levels higher than 5 percent, and the most technically efficient farm size increases with the level of household CB engagement. Second, how TE varies with the level of CB engagement depends on farm size: an inverted-U relationship for relatively small farms (<10μ), a positive relationship for middle-size farms (10–20μ), and a negative relationship for large farms (>20μ). Finally, the overall TE score, 0.88, suggests that wheat output can be increased by 12 percent in Northern China if technical inefficiency were eliminated. Originality/value Unlike most previous studies that examine the impacts of farm size and households’ off-farm business involvement separately, this paper examines how these two factors interact with each other.

scholarly journals Profitability and efficiency of cucumber production among smallholder farmers in Oyo state, Nigeria

2016 ◽  
Vol 61 (4) ◽  
pp. 387-398 ◽  
Author(s):  
Iyabo Adeoye ◽  
Olubunmi Balogun
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Farm Size ◽  
Primary Data ◽  
Access To Credit ◽  
Education Status ◽  
Increasing Demand ◽  
Gender Groups

Cucumber is one of the most important exotic vegetables in Nigeria. Its profile is rising due to widespread knowledge of its inherent health benefits. To sustain the availability of the crop in order to meet increasing demand, there is the need to enhance its productivity. Crop productivity depends on the efficient use of both material and human resources utilized in the production process. This study therefore examined profitability and efficiency of cucumber production in Iseyin local government area of Oyo state. Primary data on socioeconomic characteristics of farmers, input and output quantity and prices were collected from 73 cucumber farmers and analyzed using descriptive statistics, budgetary technique and stochastic frontier. Majority of the farmers were male (96.7%) with average age of 46.4 years. An average of 17.1 years of farming experience cut across both gender groups. The average hectare was 1.5 with average yield of 5,368 kg/ha. Budgetary analysis revealed that net profit of N=239,440/ha, profit margin percentage of 55.8% and returns on every naira invested of 1.26 were obtained. This is an indication that cucumber production is profitable in the study area. The result of the stochastic frontier indicated that farm size and volume of agrochemical used significantly influenced cucumber production. Age, education status of farmers and access to credit were the significant factors determining technical efficiency of the farmers in the study area. Mean technical efficiency of production was 0.68. The study recommends capacity building for farmers on an appropriate combination of resources.

scholarly journals The Impact of Credit on Technical Efficiency Among Vegetable Farmers in Swaziland

2014 ◽  
Vol 4 (1) ◽  
pp. 114 ◽  
Author(s):  
Micah B. Masuku ◽  
M. O. Raufu ◽  
Nokwanda G. Malinga
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Farm Income ◽  
Green Pepper ◽  
Access To Credit ◽  
Vegetable Farmers ◽  
The Government ◽  
The Impact

<p>Access to credit is regarded as an important intervention for improving the incomes of the rural population, mainly by mobilizing resources to more productive uses. Production of vegetables by smallholder farmers in Swaziland is inconsistent and lower than the national demand, hence the gap is filled by imports from South Africa. The purpose of the study was to assess the influence of credit on technical efficiency of smallholder vegetable farmers in Swaziland. Data were collected in 2013 from farmers through a structured questionnaire, which was administered using personal interviews. A two-stage sampling procedure was used by stratifying the vegetable farmers in the Hhohho region according to the four Rural Development Areas (RDAs). This was followed by a simple random sampling technique used to select the number of vegetable farmers from each stratum. A sample size of 120 farmers was selected from a population of 289. The Stochastic Frontier production function was used to analyze the data using the STATA program (version 12). The results revealed that credit had a negative effect on technical efficiency of cabbage and green pepper farmers, while it had a positive effect on the technical efficiency of tomato, and beetroot farmers. The technical efficiency of tomatoes and cabbage farmers was affected by age, education level, farming experience and access to credit (p &lt;0.01), while beetroot and green pepper was affected by farmer’s age, and off-farm income. (p&lt;0.05). The study recommended that vegetable farmers should increase the amount of seeds, fertilizer and chemicals used in order to improve yields. The Government of Swaziland should subsidize farming inputs and financial institutions should make credit more available to agribusinesses in order to improve the efficient use of input resources.</p>

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