scholarly journals Benchmarking technical efficiency of rice farms in Ghana: An empirical application of alternative production frontier approaches

2018 ◽  
Vol 2 (3) ◽  
pp. 123
Author(s):  
Rebecca Owusu COFFIE
Keyword(s):  
Food Insecurity ◽  
Technical Efficiency ◽  
New Technologies ◽  
Stochastic Frontier ◽  
Total Sample ◽  
Farm Income ◽  
Credit Access ◽  
Empirical Application ◽  
Rice Farmers ◽  
Stochastic Frontier Models

Abstract Aim: In spite of investments in new technologies to improve upon rice production in Ghana, productivity levels are still low. It is therefore important to assess the efficiency of farmers and identify sources of inefficiency to develop policies to reduce inefficiencies. This paper aims to investigate the extent and drivers of technical efficiency of rice farmers in Ghana.Design/Research methods: Bias-corrected data envelopment and restricted single-stage stochastic frontier models are employed to examine the technical efficiency of farmers and its determinants.  The data for empirical application come from a farm production survey comprising a total sample of 197 rice farmers from Ghana.Conclusions and findings: The analyses revealed on average, farmers are about 65% technically efficient. This result indicates that there is a potential to improve upon technical efficiency of farmers by about 35% within the existing state of resources and technology. Furthermore, the drivers of technical efficiency were identified as food insecurity status and membership of farmer based organisation. Specifically, the results show an inverse relationship between food insecurity status and technical efficiency; where higher levels of food insecurity are associated with lower levels of technical efficiency. Also, membership of farmer based organisation increases technical efficiency of farmers. Contrary to previous studies, non-farm income and credit access were not identified as significant drivers of technical efficiency among the sampled farmers. On the basis of the findings, policies should aim at reducing food insecurity among farmers and encouraging membership of farmer based organisations.Originality/value of the article: This paper provides evidence-based information on the extent of technical efficiency of rice farmers in Ghana and suggests measures for technical efficiency improvements. 

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

Technical Efficiency in Seed Potato Production Systems in Uganda

2018 ◽  
Vol 10 (3(J)) ◽  
pp. 122-140
Author(s):  
Ambrose Rwaheru Aheisibwe ◽  
Razack B. Lokina ◽  
Aloyce S. Hepelwa
Keyword(s):  
Technical Efficiency ◽  
Seed Potato ◽  
Arable Land ◽  
Stochastic Frontier ◽  
Potato Production ◽  
Maximum Likelihood Estimates ◽  
Farm Income ◽  
Seed Potato Production ◽  
Extension Services ◽  
Income Source

This study established the level of technical efficiency and its determinants among the informal and formal seed potato producers in the southwestern highlands agro - ecological zone of Uganda. A multi- stage sampling procedure was employed to select 636 households (499 informal seed producers and 137 formal seed producers) from which data was collected for two seasons using a semi - structured questionnaire. Data was analyzed using the stochastic frontier approach with a one - step approach. Maximum likelihood estimates for the efficiency parameters showed that both informal and formal seed potato producers were not fully efficient. The mean technical efficiency for informal and formal seed potato producers was 8 1 .4 and 80.4 percent respectively. In terms of yield loss, informal and formal seed potato producers respectively lost an average of 981 and 1,208 kg/acre of seed potato tubers due to inefficiency factors . Specifically, off- farm income source, scale of production, seasonal variation, access to extension services and seed producer being male positively influenced informal seed producers’ technical efficiency while producers’ level of education and seed potato variety diversity negatively influenced their efficiency. For formal seed producers, technical efficiency was influenced positively by producers’ education and negatively by household size. The study suggests that there is an opportunity to improve technical efficiency of informal and formal seed producers by 19 and 20 percent respectively. Therefore, this calls for increased investment in developing and promoting high yielding varieties, provision of extension services, input intensification and addressing gender issues in seed potato production in the context of limited arable land .

scholarly journals Measurement of technical efficiency in the case of heterogeneity of technologies used between firms – Based on evidence from Polish crop farms

2021 ◽  
Author(s):  
Jerzy Marzec ◽  
Andrzej Pisulewski
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Prior Distribution ◽  
Prior Information ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Random Coefficients ◽  
Point Of View ◽  
Model Specification ◽  
Stochastic Frontier Models

In the present study, we have investigated several competing stochastic frontier models which differ in terms of the form of the production function (Cobb-Douglas or translog), inefficiency distribution (half-normal or exponential distribution) and type of prior distribution for the parameters (hierarchical or non-hierarchical from the Bayesian point of view). This last distinction corresponds to a difference between random coefficients and fixed coefficients models. Consequently, this study aims to examine to what extent inferences about estimates of farms' efficiency depend on the above assumptions. Moreover, the study intends to investigate how far the production function's characteristics are affected by the choice of the type of prior distribution for the parameters. First of all, it was found that the form of the production function does not impact the efficiency scores. Secondly, we found that measures of technical efficiency are sensitive to distributional assumptions about the inefficiency term. Finally, we have revealed that estimates of technical efficiency are reasonably robust to the prior information about the parameters of crop farms' production technology. There is also a resemblance in the elasticity of output with respect to inputs between the models considered in this paper. Additionally, the measurement of returns to scale is not sensitive to model specification.

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.

scholarly journals Analysis of technical efficiency in maize production in Guji Zone: stochastic frontier model

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Aschalew Shiferaw Belete
Keyword(s):  
Maximum Likelihood ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Maize Yield ◽  
National Average ◽  
Likelihood Method ◽  
Farm Income ◽  
Total Production ◽  
Maize Production ◽  
Truncated Normal

Abstract Background The Guji Zone in particular and Oromia region in general have a huge potential for crop production that can even contribute for the country as a whole in the struggle for achieving food security. Maize is Ethiopia’s largest cereal crop in terms of total production, acreage, and the number of farm holdings. It is one of the staple crops produced in the study area. However, the farm productivity per hectare is low compared to the national average which indicates the presence of farming inefficiency in the study area. Thus, this study was undertaken with the objective of estimating the level of farmers’ technical efficiency in maize production and identifying the factors which determine the variation in the level of technical efficiency among the farmers. Results This study was relied on the primary data collected from a sample of maize producing farm household of Adola Rede and Anna Sorra districts of the Guji Zone using a survey questionnaire. A simple random sampling technique was found appropriate for selecting the respondents, since the populations of these study area are homogeneous. The analysis was relied on a cross-sectional data collected from 234 sample farm households. A one-step stochastic frontier normal/truncated-normal model was used to estimate the farmers’ technical efficiency as well as to identify the determinants of yield per hectare of maize which was estimated by maximum-likelihood method. The empirical result indicates that there are large numbers of inefficient farmers in both districts. The estimated technical efficiency for maize producing farmers is equal to 69.03%. Besides, the current study revealed that 69.23% of maize producing farmers have been operating within a technical efficiency score interval equal to (0.5–0.75) in both districts. In addition, the maize yield per hectare in the study area is very low compared to the national average, i.e., the mean yield is 19.2 quintal per hectare. Moreover, the maximum-likelihood results show that gender of the head of the household, age of the head of the household, farm income, row planting, access to credit, number of active labor force, land size owned, access to improved seed and seed type used, and number of livestock were significantly determine the farmers technical inefficiency. Conclusion The results of the study revealed that there is an opportunity which is being squandered in maize production in the study area. For instance, with a given technology, it is possible to raise the maize yield per hectare by 30.07% in the study area. Thus, the government and any concerned stakeholders should facilitate access to improved seed and fertilizer, credit, farm technology, and short-term training. Besides, all stakeholders should work in a cooperative and organized manner to implement the full agricultural package on farm level.

scholarly journals PENGARUH TINGKAT PENERAPAN TEKNOLOGI PENGELOLAAN TANAMAN TERPADU (PTT) TERHADAP EFISIENSI TEKNIS USAHATANI PADI

2018 ◽  
Vol 6 (2) ◽  
pp. 121
Author(s):  
Mira Apriani ◽  
Dwi Rachmina ◽  
Amzul Rifin
Keyword(s):  
Technical Efficiency ◽  
Technology Implementation ◽  
Formal Education ◽  
Stochastic Frontier ◽  
Production Capacity ◽  
Farm Income ◽  
Rice Farming ◽  
Linear Regression Models ◽  
Scoring Method ◽  
Α Level

<em><span>Domestic rice needs will continue to increase, it is estimated that national rice needs in 2035 will reach 36 million tons. Meanwhile, national rice production capacity is experiencing slow growth or tends to be stagnant. So that it needs an increase in productivity or technical efficiency through the Integrated Crop Management</span><span lang="IN"> (ICM)</span><span> model approach. This study aims to analyze the level of rice ICM technology implementationand the factors that influence the level of rice ICM technology implementation and its effect on the technical efficiency of rice farming in Bogor Regency. Determination of the sample using purposive sampling method, a sample of 60 farmers in the District of Cariu, Pamijahan, and Leuwisadeng </span><span lang="IN">of </span><span>Bogor Regency were analyzed using the scoring method, multiple linear regression models, and the stochastic frontier analyze method. The results showed the level of rice ICM technology implementation in Bogor Regency was classified as moderate (71</span><span lang="IN">,</span><span>54 percent), while the technology component with the highest level of application was jajar legowo spacing of 2:1 (98</span><span lang="IN">,</span><span>50 percent) and the lowest was the use of manure (27 percent). Factors that influence the level of rice ICM technology implementation at α level of 5 percent are non-farm income with an estimated value of 3</span><span lang="IN">,</span><span>318, intensity of SLPTT and non SLPTT training with an estimated value of 2</span><span lang="IN">,</span><span>236, and dummy farmer's employment status with an estimated value of 2</span><span lang="IN">,</span><span>127. While the experience factor of farming with an estimated value of 0</span><span lang="IN">,</span><span>110 and the duration of formal education of farmers with an estimated value of 0</span><span lang="IN">,</span><span>403 has an effect on the level of α of 10 percent. </span><span lang="IN">T</span><span>he level of rice ICM technology implementation with an estimated value of -0</span><span lang="IN">,</span><span>0855 and farmer access to obtain credit with an estimated value of -0</span><span lang="IN">,</span><span>0348 has an effect on the technical efficiency of rice farming at α level of 1 percent, while the land ownership status with an estimated value is -0</span><span lang="IN">,</span><span>2527 at α level of 10 percent. The average level of technical efficiency of rice farming in Bogor Regency is not optimal (67</span><span lang="IN">,</span><span>4 percent), this is due to, among others, the application of technological components that are still relatively low or not as recommended by </span><span lang="IN">ICM</span><span>. Therefore, efforts are needed to increase motivation and farmer participation in implementing </span><span lang="IN">ICM</span><span> technology optimally and sustainably to help meet national rice needs.</span></em>

scholarly journals PROFITABILITAS DAN EFISIENSI TEKNIS USAHATANI BAWANG MERAH DI KABUPATEN BANTUL DAN KABUPATEN NGANJUK

2014 ◽  
Vol 11 (1) ◽  
pp. 35
Author(s):  
Muhammad Fauzan
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Primary Data ◽  
Farm Income ◽  
Net Income ◽  
Gross Margin ◽  
Stochastic Frontier Production Function ◽  
Return On Capital ◽  
Frontier Production Function ◽  
Structured Questionnaire

<p><em>The board objective of study is to evaluate the profitability and technical efficiency of shallot farming in Bantul and Nganjuk regency. The specific objectives are to (1) Evaluate the profitability of shallot farmers in the study area and (2) Determine the levefl of technical efficiency of shallot farmers. The primary data used for the study obtained using structured questionnaire administered to 60 selected farmers. Gross margin, net farm income, gross ratio, operation ratio, return on capital invested, and stochastic frontier production function were used to analyze the data. The study showed that (1) shallot farming in Bantul and Nganjuk regency was profitable with net income Rp 20.903.711,00/ha and Rp 35.294.540,00/ha, (2) the distribution of the technical efficiency indices revealed that the most of the farmers were technically efficient with mean TE Index of 0.802 (Bantul) and 0,929 (Nganjuk), (3) the result of the inefficiency model showed that years of education (Bantul) and age (Nganjuk) significantly increased the farmers technical efficiency.     </em></p><p> </p><p><em>Tujuan utama penelitian ini adalah mengevaluasi profitabilitas dan efisiensi teknis usahatani bawang merah di Kabupaten Bantul dan Kabupaten Nganjuk. Secara spesifik, penelitian ini bertujuan untuk (1) mengetahui profitabilitas usahatani bawang merah di lokasi penelitian dan (2) mengetahui tingkat efisiensi teknis petani bawang merah. Penelitian ini mengggunakan data primer hasil survey pada 60 petani responden dengan menggunakan kuisioner yang telah dirancang sesuai dengan tujuan penelitian. Gross margin, net farm income, gross ratio, operation ratio, return on capital invested, dan fungsi produksi frontier stokastik digunakan dalam penelitian ini untuk menganalisis data. Hasil penelitian menunjukkan bahwa (1) usahatani bawang merah di Kaupaten Bantul dan Kabupaten Nganjuk menguntungkan untuk dijalankan dengan net income Rp 20.903.711,00/ha and Rp 35.294.540,00/ha, (2) distribusi tingkat efisiensi teknis menunjukkan bahwa mayoritas petani telah mencapai tingkat yang efisien dengan rata-rata TE Index 0,802 (Bantul) dan 0,929 (Nganjuk), (3) hasil analisis model in-efisiensi menunjukkan bahwa tingkat pendidikan (Bantul) and umur (Nganjuk) berpengaruh signifikan terhadap peningkatan efisiensi teknis petani.</em></p>

scholarly journals Profitability Comparison Between Boro Rice and Maize Production in Dinajpur District

2021 ◽  
Vol 8 (1) ◽  
pp. 51-56
Author(s):  
Rozina Yeasmin ◽  
Mohammad Saidur Rahman ◽  
Mohammad Ismail Hossain
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Cost Ratio ◽  
Maize Production ◽  
Frontier Analysis ◽  
Benefit Cost Ratio ◽  
Rice Farmers ◽  
Benefit Cost ◽  
Boro Rice

The study focuses on comparing technical efficiency and profitability between Boro rice farmers and maize farmers in Dinajpur district consisting of 150 randomly collected samples which are analyzed with statistical software STATA 12.0 version. Stochastic Frontier Analysis (SFA) is used to accomplish the first objective where it is found that the maize farmers are efficient compared to boro-rice farmers. The deviation of the mean technical efficiency is estimated at 0.09. In addition maize farmers are also more profitable than boro-rice farmers estimated with a benefit Cost Ratio (BCR) of1.08 is for boro-rice and 1.26 is for maize production. The net profit for boro-rice is estimated as 10,527.60 Tk./ha whereas 28,966.40 Tk./ha for maize producers. However mean technical efficiency of boro-rice (0.44) and maize (0.53) cultivation clearly indicates that better utilization of resources will raise the efficiency and profitability for both crops production. Res. Agric., Livest. Fish.8(1): 51-56, April 2021

scholarly journals An Analysis of Technical Efficiency for Household's Rice Production in Cambodia: A Case Study of Three Districts in Battambang Province

2016 ◽  
Author(s):  
Sokvibol Kea ◽  
Hua Li ◽  
Linvolak Pich
Keyword(s):  
Technical Efficiency ◽  
Influencing Factors ◽  
Best Practice ◽  
Stochastic Frontier ◽  
Household Head ◽  
Rice Production ◽  
Primary Data ◽  
Rice Farmers ◽  
Plot Area ◽  
Frontier Production Function

The aims of this study are to measure the technical efficiency (TE) of Cambodian household&rsquo;s rice production and trying to determine its main influencing factors using the stochastic frontier production function. The study utilized primary data collected from 301 rice farmers in three selected districts of Battambang by structured questionnaires. The empirical results indicated the level of household rice output varied according to differences in the efficiency of the production processes. The mean TE is 0.34 which means that famers produce 34% of rice at best practice at the current level of production inputs and technology, indicates that rice output has the potential of being increased further by 66% at the same level of inputs if farmers had been technically efficient. Furthermore, between 2013-2015, TE of household&rsquo;s rice production recorded -14.3% decline rate due to highly affected of drought during dry season of 2015. Moreover, evidence reveals that land, fertilizer, and pesticide are the major influencing input factors of household&rsquo;s rice production, while disaster, education of household head, family size and other crops&rsquo; cultivated area are core influencing factors decreasing TE. Conversely, the main influencing factors increasing TE are irrigated area, number of plot area and sex of household head.

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