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 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 ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

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.

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals Gender Differentials in Technical Efficiency among Small-Scale Cassava Farmers in Abia State, Nigeria

2020 ◽  
pp. 98-109
Author(s):  
E. S. Yisa ◽  
M. I. Nwojo ◽  
A. A. A. Coker ◽  
A. Adewumi ◽  
F. D. Ibrahim
Keyword(s):  
Technical Efficiency ◽  
Maximum Likelihood Estimates ◽  
Farm Size ◽  
Primary Data ◽  
Farm Income ◽  
Small Scale ◽  
Gender Differentials ◽  
Female Farmers ◽  
Cassava Production ◽  
Farm Inputs

This study examined gender differentials in technical efficiency among small scale cassava farmers in Abia State, Nigeria. The profitability of cassava production, technical efficiency as well as the factors influencing inefficiency among the farmers in the study area were determined. Well structured questionnaire and interview schedule were employed to obtain primary data from the 133 male and 147 female cassava farmers sampled from two agricultural zones in Abia State. Data were analyzed using descriptive statistics, farm budgeting technique and stochastic frontier production function. A total of 73.68% of males and 81.63% of females were married, with an average household size of 6 and 5 persons, mean farming experience of 18 years for males and 16 years for females, and cultivated less than 2ha of land. Cassava production was profitable with a gross margin of ₦140,978.28 per hectare for males and ₦131,070.27 per hectare for females. The maximum likelihood estimates showed male farmers were more technically efficient with mean efficiency score of 0.82 compared to 0.78 for female farmers. Factors affecting the technical efficiency of male farmers included farm size, educational level, extension contact, credit amount while that of the female farmers were age, farm size, cooperative membership, land ownership and off-farm income. High cost of acquiring credit facilities and farm inputs, poor road network, inadequate extension services, limited farmland were the major constraints faced by farmers in the study area. It was concluded that male farmers were more technically efficient and also had higher gross income per hectare than their female counterpart. Policies aimed at improving the female farmers’ access to land and other farm inputs should be established and implemented by the government in order to increase efficiency was recommended.

scholarly journals Estimation of technical efficiency of Czech farms operating in less favoured areas

2019 ◽  
Vol 65 (No. 10) ◽  
pp. 445-453
Author(s):  
Tamara Rudinskaya ◽  
Tomas Hlavsa ◽  
Martin Hruska
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Agricultural Area ◽  
Farm Size ◽  
Identification System ◽  
Accounting Data ◽  
Frontier Analysis ◽  
The Impact

This paper deals with the technical efficiency analysis of farms in the Czech Republic. The empirical analysis provides an evaluation of technical efficiency with regard to the farm size, farm specialisation, and farm location. Accounting data of Czech farms from the Albertina database for the years 2011–2015 were used for the analysis. The data were classified by the utilised agricultural area and location of the farm expressed as a less favoured area type from the Land Parcel Identification System (LPIS) database. Research was conducted using the translogarithmic production function and Stochastic Frontier Analysis. The results indicate positive impact of farm size, expressed by utilised agricultural area, on technical efficiency. The analysis of the impact of farm specialisation on technical efficiency verified that farms specialised on animal production are more efficient. The lowest technical efficiency is shown by farms situated in mountainous Less Favoured Areas (LFAs), the highest technical efficiency by farms located in non-LFA regions.

scholarly journals Rice farmers’ technical efficiency under abiotic stresses in Bangladesh

2018 ◽  
Vol 7 (11) ◽  
pp. 219-232
Author(s):  
Md. Abu Bakr Siddique ◽  
Md. Abdur Rouf Sarkar ◽  
Mohammad Chhiddikur Rahman ◽  
Afroza Chowdhury ◽  
Md Shajedur Rahman ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Positive Impact ◽  
Positive Margin ◽  
Farm Size ◽  
Rice Varieties ◽  
Benefit Cost Analysis ◽  
Rice Farmers ◽  
Stress Environments ◽  
Cash Cost ◽  
Benefit Cost

This study was an attempt to investigate the economic performance of stress tolerant rice varieties in different abiotic stress prone areas (submergence, drought, and salinity) of Bangladesh. The study used production frontier approach to measure the technical efficiency at the farm level. Benefit-cost analysis revealed that farmers in all stress environments obtained positive margin on cash cost basis and the profit became negative on full cost basis in all environments with exception for submergence. That means rice production was marginally benefited to farmers in all the stress environments. Farm specific technical efficiency of all stress environments indicated that large farmers were comparatively more efficient due to their economic solvency as they could apply adequate amount of inputs in due time with proper doses. Inefficiency model indicated that farm size, farmers ‘education, households’ size, farming experience, extension contact, and main occupation of the farmers, were the important factors causing variations in the efficiency. However, BRRI released stress tolerant rice varieties had significant positive impact on technical efficiency. Plausible policies have been recommended according to the study outcomes.

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 Analysis of technical efficiency among rice farmers in Ebonyi State of Nigeria: A stochastic frontier approach

2020 ◽  
Vol 18 (1) ◽  
pp. 40-49
Author(s):  
C. Chikezie ◽  
G.N. Benchendo ◽  
O.B. Ibeagwa ◽  
I.O. Oshaji ◽  
O.A. Onuzulu
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Sample Selection ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Farm Size ◽  
Rice Varieties ◽  
Rice Farmers ◽  
Extension System ◽  
Douglas Production Function

This paper analysed the technical efficiency of rice farmers in Ebonyi State, Nigeria. It specifically analysed the levels and determinants of technical  efficiency. A multistage sampling technique was adopted for sample selection. A total of 150 well-structured questionnaires were distributed but only 91 were returned. The Cobb-Douglas production function model was used to predict the farm level technical efficiency. Results from the Cobb- Douglas Regression showed a sigma square (σ2) of 0.06584 which was statistically significant at 1 percent. The technical efficiency scores among the rice farmers ranged from 0.012 to 1.000 with a mean of 0.350. Farm size, quantity of rice seedlings, quantity of fertilizer and quantity of  agrochemical all were showed positive correlation with coefficients of 0.93511, 0.08310, 0.11200 and 0.14345 respectively while farm labour showed  a negative correlation with technical efficiency. The determinants of technical inefficiency were age, household size and extension visits. This paper advocates the strengthening of existing extension system for timely sourcing of highly improved rice varieties and subsidized fertilizer. There is the need to enhance farmers’ technical efficiency through adequate training on optimum input mix. Keywords: Rice production, technical efficiency, cobb-douglas production function

scholarly journals ANALYSIS OF EFFICIENCY AMONG RICE FARMERS IN OYO STATE, NIGERIA

2020 ◽  
Vol 6 ◽  
pp. 54
Author(s):  
Wasiu Olawale ADESHINA ◽  
Olugbenga Adesoji Christopher OLOGBON ◽  
Adewunmi Olubanjo IDOWU
Keyword(s):  
Technical Efficiency ◽  
Economic Efficiency ◽  
Formal Education ◽  
Technology Policy ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Maximum Likelihood Estimates ◽  
Farm Size ◽  
Primary Data ◽  
Rice Farmers

Increased rice productivity for years is not a solution if rice farming efficiency cannot be sustained for the next hundred years. The study analysed the efficiency of rice farmers in Oyo State. A multistage sampling procedure was employed to select128 rice farmers for the study. Primary data were obtained with the aid of well-structured questionnaire and interview schedule. Descriptive statistics and stochastic frontier model were employed in the analysis of the data. Majority (78.1%) of the rice farmers had one form of education or the other while the age of rice farmers ranges from 25 to 78 years and mean age of 47 years. The stochastic frontier results (Maximum Likelihood Estimates) revealed that farm output increases with farm size, hired labour, and fertilizer but decreases with herbicides. Also, technical efficiency of the farmers increases with formal education, farming experience, household size, extension contact and distance of farm to market. The mean technical efficiency, allocative efficiency and economic efficiency of 88.5 percent, 66.9 percent and 58.3 percent respectively showed that there is room for improvement in technical efficiency by 11.5 percent, allocative efficiency by 33.1 percent and economic efficiency by 41.7 percent with the present technology. Policy option requires the rice farmers to reduce the use of agro chemical. Farmers should expand their farm land to ensure efficient utilization of resources. Above all, formal education and adult literacy education should be strengthened among the rice farmers.

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 Technical Efficiency of Plantain Production in Ekiti Southwest Local Government Area of Ekiti State, Nigeria

2018 ◽  
Vol 8 ◽  
pp. 1203-1213
Author(s):  
Rufus Sunday Owoeye ◽  
F. O. Osundare
Keyword(s):  
Local Government ◽  
Technical Efficiency ◽  
Descriptive Analysis ◽  
Stochastic Frontier ◽  
Local Government Area ◽  
Production Model ◽  
Farm Size ◽  
Small Scale ◽  
Access To Credit ◽  
Pests And Diseases

This study examined the technical efficiency of plantain production in Ekiti Southwest Local Government Area (LGA) of Ekiti State, Nigeria. The study used multistage sampling techniques for data collection. Data were collected from 90 plantain farmers through well-structured questionnaires from the LGA with three towns purposively selected. The collected data were analyzed using descriptive statistics, budgetary analysis and stochastic frontier production model. Results from descriptive analysis showed that 48.88 percent of the plantain farmers had secondary education and above. Majority of the respondents (66.67 percent) had between 5 and 8 members that made up the household in the study area. Findings further showed that majority of the respondents produced on small scale with average plantain farm size of 0.96 hectares. The farmers were fairly experienced with 44.44 percent of them had more than 15 years of farming experience. With mean profit of ₦251,500 per hectare and percentage profit of 63.11 percent, the venture was considered to be highly profitable. Farmers who invested ₦1 realized revenue of ₦0.63. The RTS parameter (0.931) was obtained from the summation of the coefficients of the estimated inputs (elasticities) which indicated that plantain production in the study area was in Stage II of the production surface meaning that these variables were efficiently utilized. Depreciation, hired labour, family labour, farm size and quantity of suckers planted were the significant variables that influence efficiency of the plantain farmers. Age, land acquisition and access to credit contributed significantly to technical inefficiency. Among the most prevalent constraints were; price fluctuation (72.22%), heavy wind (70.00%), high cost of farm input (68.89%), pests and diseases and pilferage (63.33%) each, insufficient credit facility, storage facility and poor agricultural extension services (62.22%) respectively.

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