scholarly journals Economic Efficiency of Wheat Producers: The Case of Debra Libanos District, Oromia, Ethiopia

Author(s):  
Kebebew Hundie Bezu ◽  
Badassa Wolteji Chala ◽  
Milkessa Wakjira Itticha

Ethiopia has enormous potential for wheat production, yet it remains a net wheat importer. This paper aims to examine the efficiency of wheat production in Debra Libanos district, Ethiopia. Two stages sampling technique was used to randomly select 150 farmers for the study. A stochastic production frontier and two-limit Tobit estimator was utilized in the study. The study reveals that technical (78.5 %,), allocative (85.6%), and economic (66.7%) efficiencies. The yield gap was 5.13 quintal/ hectare showing a room to increase efficiencies. The study identified the determinants of wheat production efficiency in the area. Hence, to improve wheat production efficiencies strengthen extension services, improved technology utilization, and proper land ploughing. Besides, natural resource conservations that improve soil fertility should be the focus of the policymakers.

2018 ◽  
Vol 3 (1) ◽  
pp. 45-52
Author(s):  
Mahima Bajracharya ◽  
Mahesh Sapkota

The cereal crop, maize is regarded as staple food mainly in hill areas of Nepal. Seed is one of the vital input which determines the production and yield of any crop. Farmers are found using the required inputs in haphazard way which had increased the cost of production and inefficiency of resources used. The study on seed sector is limited. For such a backdrop, this study was aimed to assess the level of technical efficiency (TE) of certified maize seed production. The total of 164 certified seed producer were interviewed in June, 2016 using simple random sampling technique in Palpa district of Nepal. The result revealed that increase in amount of seed and labor by one percent would increase the yield of certified maize seed by 0.29 and 0.34 percent respectively. The TE was estimated using stochastic production frontier model in Stata software. The average TE was found 70 percent which revealed the scope of increasing TE by 30 percent using the existing available resources. There were about 29 percent farmers who had TE of ≥0.7-0.8 followed by 27.44 percent at ≥0.8-0.9. Government and other stakeholders should prioritize to provide technical knowledge via training and increase the visit of extension worker to increase TE of certified maize seed producer in the district.


2019 ◽  
Vol 11 (24) ◽  
pp. 6970
Author(s):  
Denitsa Angelova ◽  
Jan Käbel

We formulate a stochastic production frontier model to estimate the production efficiency scores while correcting for technical progress and weather effects in the form of temperature and precipitation levels and volatility. We econometrically estimate a model for European agriculture. Our results indicate that average temperature, unlike average precipitation levels, significantly influences aggregate agricultural output. We estimate that a marginal increase in temperature would decrease aggregate European agricultural output by about 1.6% percent. Further estimation results indicate a slight increase in output associated with marginal increases of precipitation and temperature volatilities.


2021 ◽  
Vol 3 (2) ◽  
pp. 34-40
Author(s):  
Vivi Imrona Fardiyah ◽  
A. Gusti Tantu ◽  
Sri Mulyani

Penelitian ini bertujuan untuk menganalisis pengaruh penggunaan input produksi terhadap hasil produksi, juga mengestimasi tingkat efisiensi penggunaan input produksi pada budidaya penggemukan kepiting bakau di Kabupaten Pangkep. Pada penelitian ini, teknik pengambilan sampel adalah sensus, yaitu petani pembudidaya penggemukan kepiting sebagai responden. Analisis data menggunakan Stochastic Production Frontier yang penyelesaiannya dengan bantuan program LIMDEP versi 6. Hasil estimasi menunjukkan dengan menggunakan fungsi produksi frontier bahwa variabel bebas yang signifikan berpengaruh positif terhadap produksi kepiting adalah luas keramba, jumlah benih dan jumlah pakan.  Analisis terhadap Efisiensi Teknis (ET) rata-rata sebesar 0,94986. nilai tersebut dapat dikatakan sebagai prestasi atas kinerja penggunaan input produksi yang sangat memuaskan (mendekati 1), namun disisi lain kesempatan untuk melakukan pengembangan relatif sempit sehingga perlu upaya ekstensifikasi. Nilai R/C rasio sebesar 1,9516, artinya bahwa budidaya penggemukan kepiting bakau masih menguntungkan sehingga layak untuk dikembangkan. His study aimed to analyze the effect of the use of inputs to production, also estimate the efficiency of use of production inputs in the cultivation of mangrove crab fattening in Pangkep. In this study, the sampling technique is the census that farmers crab fattening farmers as respondents. Analysis of data using Stochastic Production Frontier settlement with the help of the program LIMDEP version 6. The estimation results show using frontier production function that the independent variables were significant positive effect on the production of crab is spacious cages, seed number and amount of feed. Analysis of the Technical Efficiency (ET) by an average of 0.94986. The value can be regarded as the achievement of the performance use of production inputs very satisfying (approaching 1), but on the other hand the opportunity to develop a relatively narrow so that extending the necessary efforts. Rated R / C ratio of 1.9516, it means that the cultivation of mangrove crab fattening still profitable so as to develop.


2021 ◽  
pp. 097300522199758
Author(s):  
Raju Mandal ◽  
Shrabanti Maity

The agriculture sector in India is beset with twin limitations of shrinking cultivable area and absence of major technological breakthroughs in the recent past. In such a situation, a judicious management of the farm in the form of adjustment in a crop portfolio can be quite useful to maximise output and minimise wastage of resources. This article seeks to examine whether a diversified crop portfolio makes the farmers more efficient using farm-level survey data collected from geographically diverse areas of Assam, a state in northeast India. The results of a stochastic production frontier analysis show that adoption of a diversified crop portfolio across crops and seasons makes the farmers more efficient in cultivation by helping them reduce weather-induced damages to crops and reap better returns from farming. This efficiency-enhancing effect of crop diversification is found to be heterogeneous among the regions. However, too much diversification reduces the efficiency of farmers. The results have important implications for Assam where floods cause extensive damage to crops every year. Moreover, access to extension services and government support are found to make the farmers more efficient. On the other hand, fixed-rent form of tenancy reduces efficiency of the farmers while household size has a positive impact on the same.


Author(s):  
Richard F. Nehring ◽  
Jeffrey Gillespie ◽  
Catherine Greene ◽  
Jonathan Law

Abstract United States certified organic and conventional dairy farms are compared on the basis of economic, financial, and technological measures using dairy data from the 2016 USDA Agricultural Resource Management Survey. A stochastic production frontier model using an input distance function framework is estimated for U.S. dairy farms to examine technical efficiency and returns to scale (RTS) of farms of both systems and by multiple size categories. Financial and economic measures such as net return on assets and input costs, as well as technological adoption measures are compared by system and size. For both systems, size is the major determinant of competitiveness based on selected measures of productivity and RTS.


2021 ◽  
Vol 4 (4) ◽  
pp. 259-273
Author(s):  
Solomon T. Folorunso ◽  
T. Omosebi ◽  
D. A. Agbonika

The study compared the allocative efficiency and profitability of poultry-egg farmers in Jos metropolis of Plateau State, Nigeria, across different scales. To select 143 respondents, a two-stage sampling technique was used.   Using well-structured questionnaire and interview schedules, primary data on socioeconomic variables were collected. Collected data were analyzed using budgetary technique and stochastic production frontier model. Result of allocative efficiency showed the following: The mean allocative efficiency of the small, medium and large scales was 0.68, 0.12 and 0.11 respectively; the minimum allocative efficiency for small, medium and large scales was 0.30, 0.10 and 0.10 respectively. The maximum allocative efficiency was 0.59, 0.18 and 0.11 respectively for small, medium and large scale farmers. The profitability result indicated that egg production for small, medium and large-scale farms was profitable in the study area with N675, 671.79, N4, 897,236.09 and N16, 327,633.66 per farmer. The rate of return on investment per bird was found to be 19.51%, 31.21% and 83.13% respectively for small, medium and large farm sizes. For small, medium and large-scale farmers respectively, the capital turnover per bird was N 1.20, N1.31 and N1.83. Also, the profitability indices for the small, medium and large scales are N0.16, N0.24 and N0.45. The study recommends that; Farmers should be advised to increase production from small scale to large scale through policies that will promote such, special intervention is needed from the government at all levels through farmers’ cooperatives in the area of inputs subsidy, price efficiency of the farmers could


2018 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Dira Asri Pramita ◽  
Nunung Kusnadi ◽  
Harianto Harianto

<em>Due to the high cost of investment in broiler production and the risk involved, various types of lease arrangement in broiler production exist in Indonesia. Two of the best known arrangement include the contract system and the informal profit sharing system. The difference in these two types of arrangement lies in the degree of cooperation which influence their technical efficiency. This study aims to measure the technical efficiencies of broiler farms with the contract system and the profit sharing system. This study also analyzed the basic determinants of the technical efficiency, as well as the socio-economic variables that affect business performance. Cross section data was collected from Limapuluh Kota district between July to September 2015. The purposive  sampling technique was used to identify 87 farmers of which 50 were involved in the contract system arrangement while 37 were involved in the profit sharing arrangement. The data was analyzed using the Cobb-Douglas Stochastic Production Frontier. The results showed that the type of lease arrangement affects the level of technical efficiency. When compared, the technical efficiency of contract system arrangement was higher than that of the informal profit sharing arrangement. The age and experience of broiler farmers significantly influenced the level of technical efficiency. However, while age was positive experience was negative.</em>


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