scholarly journals Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

2019 ◽  
Vol 7 (2) ◽  
pp. 159-170
Author(s):  
Joachim B. Nachmansohn ◽  
Patricia Imas ◽  
Surinder K. Bansal

Agriculture is the backbone of the Indian economy, in spite of concerned efforts towards industrialization in the last three decades. Therefore, the soil quality and fertility are the major factors in crop production. Declining soil fertility is one of the primary factors that directly affect crop productivity, and fertilizer-use is a key factor in order to keep soil fertility and productivity. A major factor in declining soil fertility is potassium (K) depletion, especially on smallholder farms where fertilization decisions are not based on regular soil testing. Most of the smallholder soybean producers do not have access and investment capacity to soil testing services. Therefore, there is a need to create K fertilizer recommendations based on empirically verified knowledge at India-specific scale. Such large-scale studies, in local filed conditions, are currently lacking. In order to bridge this gap, and generate proven set of directly applicable recommendations, a large-scale plot trial was launched; the Potash for Life (PFL) project. The study evaluated the K response in soybean when fertilizing with potash on K depleted soils in local variable field conditions. The aim was to (1) evaluate the effect and response consistency of K application on soybean yield, (2) to demonstrate to farmers the increased yield and profitability from K-inclusive fertilization regimes for this crop and give recommendations for transient yield increase, and (3) to raise the awareness among smallholder farmers about the importance of K fertilization. A comprehensive experiment was carried out in Madhya Pradesh (M.P.) and Maharashtra. The methodology was straight-forward; two identical plots side by side, with the only difference that one of them was fertilized with additional potash. The results showed a significant yield increase response from the potash application; the average yield increase was 244 kg ha-1 or 26 % in M.P., and 105 kg ha-1 or 36 % in Maharashtra. This entailed an average additional net profit of ₹ 6,681 INR ha-1 and ₹ 2,544 INR ha-1, in M.P. and Maharashtra respectively. It was concluded that the soil status of plant available K is significantly lower than the plant demand for soybean production in the two states, Consequently, K fertilization is necessary in order to improve agricultural practices and optimizing yields. Ultimately, following recommendations given in this study would allow farmers to generate additional profit, which could further allow them to invest in fine-tuning fertilizer practices through the means of soil testing.


2020 ◽  
Vol 5 (1) ◽  
pp. 6
Author(s):  
Ahmad Oktabri Widyananda ◽  
Dyah Wulan Sari

Foreign Direct Investment (FDI) takes an important role in the development process, especially in developing countries. The purpose of this study is to examine and analyze FDI spillover on the level of technical efficiency in the large and medium manufacturing industry in East Java. This study uses a time-varying stochastic frontier approach for firm-level panel data of the East Java manufacturing industry. The results show that all factors in this study affect the level of technical efficiency of large and medium industries in East Java. Variable foreign share, FDI horizontal spillover, and firm size have a positive influence on the technical efficiency of the industry. Whereas the variable FDI backward spillover, FDI forward spillover and the level of market concentration negatively affect the level of technical efficiency of the industry. Finally, it’s needed to build synergies and sustainable relationships between products produced by domestic and foreign firms. Thus, the presence of foreign firms in East Java could have a positive impact on improving the technical efficiency of the domestic industry both at the upstream and downstream levels. Keywords: Foreign Direct Investment Spillover, Technical Efficiency, East Java IndustryJEL Classification: F21, L60, D24


2021 ◽  
Vol 13 (3) ◽  
pp. 1330
Author(s):  
Muhammad Ayaz ◽  
Dalia Feizienė ◽  
Vita Tilvikienė ◽  
Kashif Akhtar ◽  
Urte Stulpinaitė ◽  
...  

The exercise of biochar in agribusiness has increased proportionally in recent years. It has been indicated that biochar application could strengthen soil fertility benefits, such as improvement in soil microbial activity, abatement of bulk density, amelioration of nutrient and water-holding capacity and immutability of soil organic matter. Additionally, biochar amendment could also improve nutrient availability such as phosphorus and nitrogen in different types of soil. Most interestingly, the locally available wastes are pyrolyzed to biochar to improve the relationship among plants, soil and the environment. This can also be of higher importance to small-scale farming, and the biochar produced can be utilized in farms for the improvement of crop productivity. Thus, biochar could be a potential amendment to a soil that could help in achieving sustainable agriculture and environment. However, before mainstream formulation and renowned biochar use, several challenges must be taken into consideration, as the beneficial impacts and potential use of biochar seem highly appealing. This review is based on confined knowledge taken from different field-, laboratory- and greenhouse-based studies. It is well known that the properties of biochar vary with feedstock, pyrolysis temperature (300, 350, 400, 500, and 600 °C) and methodology of preparation. It is of high concern to further investigate the negative consequences: hydrophobicity; large scale application in farmland; production cost, primarily energy demand; and environmental threat, as well as affordability of feedstock. Nonetheless, the current literature reflects that biochar could be a significant amendment to the agroecosystem in order to tackle the challenges and threats observed in sustainable agriculture (crop production and soil fertility) and the environment (reducing greenhouse gas emission).


Agrosearch ◽  
2020 ◽  
Vol 19 (2) ◽  
pp. 26-40
Author(s):  
S.O. Akanbi ◽  
W.I. Alarape ◽  
O.S. Olatunji

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


2016 ◽  
Vol 61 (4) ◽  
pp. 387-398 ◽  
Author(s):  
Iyabo Adeoye ◽  
Olubunmi Balogun

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.


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