scholarly journals Risk Adjusted Production Efficiency of Maize Farmers in Ethiopia: Implication for Improved Maize Varieties Adoption

2017 ◽  
Vol 5 (9) ◽  
pp. 1099
Author(s):  
Sisay Diriba Lemessa ◽  
Molla Alemayehu Yismawu ◽  
Megersa Debela Daksa ◽  
Mulugeta Damie Watabaji
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Stochastic Frontier Approach ◽  
Technical Inefficiency ◽  
Maize Production ◽  
Production Risk ◽  
Access To Credit ◽  
Maize Varieties

This study analyzes the technical efficiency and production risk of 862 maize farmers in major maize producing regions of Ethiopia. It employs the stochastic frontier approach (SFA) to estimate the level of technical efficiencies of stallholder farmers. The stochastic frontier approach (SFA) uses flexible risk properties to account for production risk. Thus, maize production variability is assessed from two perspectives, the production risk and the technical efficiency. The study also attempts to determine the socio-economic and farm characteristics that influence technical efficiency of maize production in the study area. The findings of the study showed the existence of both production risk and technical inefficiency in maize production process. Input variables (amounts per hectare) such as fertilizer and labor positively influence maize output. The findings also show that farms in the study area exhibit decreasing returns to scale. Fertilizer and ox plough days reduce output risk while labor and improved seed increase output risk. The mean technical efficiency for maize farms is 48 percent. This study concludes that production risk and technical inefficiency prevents the maize farmers from realizing their frontier output. The best factors that improve the efficiency of the maize farmers in the study area include: frequency of extension contact, access to credit and use of intercropping. It was also realized that altitude and terracing in maize farms had influence on farmer efficiency.

Technical efficiency and production risk of maize production: Evidence from Ghana

2018 ◽  
Vol 3 (2) ◽  
pp. 74-80
Author(s):  
Atta Boahen Oppong
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Maize Production ◽  
Production Risk ◽  
Intermediate Inputs ◽  
Labor Inputs ◽  
Specific Factors ◽  
Input Variables

The paper performs an investigation of maize production efficiency in Ghana by the stochastic frontier model with flexible riskproperties using a cross section of 232 farms from the Brong-Ahafo Region. The findings of the study are the translog model isbest fit for the mean output function, whilst the input variables: seed, herbicide, land, labor and cost of intermediate inputspositively influence maize output at decreasing returns to scale. The study also finds that seed and labor inputs are negativelyrelated to production risk, whilst land and cost of intermediate inputs are classified as risk increasing inputs. The averagetechnical efficiency estimate is 62% and the combined farm specific factors explain the variation in technical efficiency. Thestudy concludes that on the average 38% of potential output is lost due to technical inefficiency and production risk in inputsand the use of the best farm practices contribute to produce maize optimally.

scholarly journals Technical Efficiency and Production Risk of Rice Farms under Anchor Borrowers Programme in Kebbi State, Nigeria

2019 ◽  
pp. 1-12
Author(s):  
A. H. Kara ◽  
M. N. Shamsudin ◽  
Z. Mohamed ◽  
I. B. Latiff ◽  
K. W. K. Seng
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Policy Option ◽  
Risk Averse ◽  
Technical Inefficiency ◽  
Production Risk ◽  
Cultivation Technique ◽  
Land Cultivation ◽  
The Mean

This study estimates technical efficiency and production risk of rice farms under Anchor Borrowers Programme (ABP) in Kebbi State, Nigeria. The study employed Stochastic Frontier Production (SFA) with flexible risk specifications to a sample of 231 rice producers surveyed in 2016 production season. The findings shows that seed, fertilizer, agrochemicals and labour inputs influenced rice output positively. The production technology characterizing rice farms in the study area exhibit increasing returns to scale. Fertilizer and agrochemicals are estimated to decrease variance of the value of output while seed and labour are estimated to increase the variance of the value of output. This implies that a risk-averse farmer will use more of fertilizer and agrochemicals and less of seed and labour than a risk neutral farmer. The mean technical efficiency estimates was 85.3 percent. Several characteristics of the farmers such as education, farming experience, extension contact, land cultivation technique and planting technique significantly decrease technical inefficiency of the farmers. The study concludes that, on the average 14.7 percent of potential output is lost due to technical inefficiency and production risk in inputs and recommends the use of best farm practice to produce rice efficiently. Policy option should also consider the incorporation of production risk in technical efficiency analysis if the inputs are non-neutral in risk.

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.

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.

A Stochastic Frontier Analysis of Exporting Small and Medium Sized Enterprises in India

2016 ◽  
Vol 7 (3) ◽  
pp. 1-23
Author(s):  
Manoj Kumar
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Key Factors ◽  
Technical Inefficiency ◽  
Frontier Analysis ◽  
Efficiency Performance ◽  
Size Firm ◽  
Almost All

This study employs a stochastic frontier analysis (SFA) and technical inefficiency effects model to predict the technical efficiency of 3,168 Indian manufacturing and exporting SMEs, analyze their returns to scale and key factors impacting on their technical efficiency. Indian manufacturing and exporting SMEs extensively rely on labor rather than capital to increase their output, including almost all exporting SME groups, except those exporting to North & South America. The production of Indian manufacturing SMEs exporting to Oceania, however, has increasing returns to scale (1.1965). The inefficiency effects model reveals that firm size, firm age, foreign ownership, location and government assistance are firm-specific factors that significantly affect the technical inefficiency of production. Finally, evidence-based policies are also provided to facilitate improvement in the technical efficiency performance of Indian manufacturing and exporting SMEs.

scholarly journals Technical Efficiency of Independent Oil Palm Smallholder In Indonesia

2021 ◽  
pp. 59
Author(s):  
Firna Varina ◽  
Sri Hartoyo ◽  
Nunung Kusnadi ◽  
Amzul Rifin
Keyword(s):  
Technical Efficiency ◽  
Oil Palm ◽  
Technical Assistance ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Stochastic Frontier Approach ◽  
Funding Sources ◽  
Result Show ◽  
Input Variables ◽  
Farmer Education

This study assesses technical efficiency and possible sources of inefficiency of independent smallholder oil palm production in Indonesia with stochastic frontier approach.  The result show all the input variables is  positively affect the oil palm production and exhibit decreasing returns to scale .  The farmers have mean technical efficiency (TE) values 0.6541, however about 53 % farmers have TE above 0.70. Factors such as age of farmer, education, extension services, member of farmer group,  land ownership and funding sources have a positive and significant effect on technical efficiency. It is suggested that by improving factors such as input used, education level, technical assistance on farming practice and accessibility to credit facilities should be increase the productivity and technical efficiency of oil palm production.  The farmers who have plant over 30 years old, which the TE and productivity are the lowest values,  should be thinking about replanting

scholarly journals Évaluation Du Niveau D’efficacité Technique Des Systèmes De Production A Base De Maïs Au Bénin

2016 ◽  
Vol 12 (27) ◽  
pp. 276 ◽  
Author(s):  
Toléba Séidou Mamam ◽  
Biaou Gauthier ◽  
Zannou Afio ◽  
Saïdou Aliou
Keyword(s):  
Technical Efficiency ◽  
Production Systems ◽  
Stochastic Frontier ◽  
Truncated Regression ◽  
Maize Production ◽  
Access To Credit ◽  
High Productivity ◽  
Technical Performance ◽  
Second Stage ◽  
Main Production

This study estimates the technical efficiency of a sample of 411 maïzicoles farms in the main production areas in Benin. The study proposed an evaluation of the technical performance of these farms and identified factors of inefficiency by using the model of the production stochastic frontier Cobb-Douglas to assess the levels of efficiencies of systems production involved in the first step. A truncated regression was used in the second stage in order to establish a relationship between the indices of technical efficiency and some exogenous variables or attributes. The results of the first step shows that the index of technical efficiency varies from 37.37 to 96.22% for all systems, and that of the average technical efficiency is 80.35%. The maximum value of technical efficiency of at least 92.75% obtained shows that there are very efficient producers in the study sample as being close to the production frontier. These producers who obtain such a high productivity can be referred to generally improve the productivity of maize production systems in Benin. The results of the second stage indicate that the variables such as access to fertilizers and herbicides, the use of animal traction and tractor, technical guidance and access to credit influence significantly (p <0.05 to p <0.001) the technical efficiency of maize farms surveyed.

scholarly journals INSTITUTIONS, PRODUCTION AND MARKETING OF MAIZE IN ZIMBABWE. CASE OF MARONDERA DISTRICT OF MASHONALAND EAST PROVINCE A TWO STAGE MODEL

2021 ◽  
Vol 2 (2) ◽  
pp. 73-80
Author(s):  
Never Mafuse ◽  
Mushunje Abbysinia ◽  
Emmanuel Zivenge
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Institutional Environment ◽  
Sampling Procedure ◽  
Maize Production ◽  
Credit Access ◽  
Access To Credit ◽  
Production Stage ◽  
Marketing Efficiency ◽  
The Government

This study evaluated the influence of institutions on production and marketing efficiency of A1 maize resettled farmers in Marondera district. Data Envelopment Analysis was used to determine the efficiency scores of farmers while Tobit model was used to determine institutional factors influencing technical efficiency for both production and marketing. A multistage sampling procedure was used to select 343 farmers from Marondera District. Results showed that, farmers are technically, allocatively and economically inefficient for both production and marketing stages. Farmers are performing better at production stage than at marketing technically while there is better allocative and economic efficiency at marketing stage. Formal maize markets are more efficient than informal markets. Results for determinants of technical efficiency at production stage showed that, cattle ownership, farming experience, access to credit and social capital significantly influence maize production efficiency while access to credit, access to market, distance to market and road condition influences marketing efficiency. It can be therefore, recommended to the government of Zimbabwe to improve the institutional environment and arrangement in terms of provision of better roads, access to credit, access to markets so as to improve both production and marketing efficiency. Farmers are also recommended to join or form famer organisations as this will assist in improving both production and marketing efficiency.

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