Profitability analysis and technical efficiency of Sasakawa global 2000 maize technology in Lere Agricultural Zone, Kaduna state, Nigeria

2020 ◽  
Vol 18 (1) ◽  
pp. 20-30
Author(s):  
A.M. Durba ◽  
A. Adewumi ◽  
U. Musa
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Efficiency Score ◽  
Farm Size ◽  
Farm Income ◽  
Gross Margin ◽  
Access To Credit ◽  
Profitability Analysis ◽  
The Mean

The study determined the profitability and technical efficiency of Sasakawa Global (SG-2000) maize technology in Lere Agricultural Zone, Kaduna State, Nigeria. A total of 146 respondents were selected through a multi-stage sampling technique. Data were collected through structured questionnaire administered to the sampled respondents and complemented with interview schedule. Analysis of the data collected was done using descriptive statistics, farm budgeting technique and stochastic frontier function. Results showed that the mean age of SG-2000 adopters was 45years old, 73% of them were males and 81% were married. The mean farming experience of the adopters was 15 years, household size of 8 persons and farm size of 2.26ha respectively. Also, majority of the farmers were members of farmers’ cooperative society and had access to extension services. The farm budgeting technique revealed maize production was profitable in the area with gross margin and net farm income of ₦99,407.76/ha and ₦96,700.80/ha respectively. The maize farmers were not technically efficient with a mean efficiency score of 0.8181. The farm size at p<0.10, seed at p<0.01, fertilizer at p<0.01, capital input at p<0.01 probability levels respectively were efficiency factors, while the sex of farmer at p<0.10, marital status at p<0.10, farming experience at p<0.05 and access to credit at p<0.01 probability levels respectively were the inefficiency factors. It is recommended that other farmers in the study area should adopt the SG-2000 maize technology to improve their level of profitability and technical efficiency. Keywords: Profitability, Technical efficiency, SG-2000 maize technology, Farmers and Kaduna State

scholarly journals Factors Affecting Technical Efficiency of Rubber Smallholders in Negeri Sembilan, Malaysia

2017 ◽  
Vol 9 (5) ◽  
pp. 226
Author(s):  
A. Aliyu ◽  
Ismail Abd Latif ◽  
Mad Nasir Shamsudin ◽  
Nolila Mohd Nawi
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Likelihood Function ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Farm Size ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
The Mean ◽  
Size Task

The main objective of the study was to figure out, identify and analyse the technical efficiency of rubber smallholders’ production in Negeri Sembilan, Malaysia. Multi-stage data collection procedures, comprising both purposive and random sampling techniques, were used. Using structured questionnaires, farm-level information with cross sectional data from five districts of Negeri Sembilan, were employed in the study. A parametric Stochastic Frontier Analysis (SFA), with a transcendental logarithmic (Translog) functional form, was used in the study. The descriptive statistics results revealed that, the mean rubber yield was 5465 kg while that of the seven inputs used include 1.2 ha, 602.7, 2.33, 363.6 kg, 13.0 lit, 13.2 man days and 2.47 respectively for farm size, task, farm tools, fertilizer, herbicides, labour and rubber clones.The inferential statistics showed that, the mean technical efficiency was found to be 0.73 with a standard deviation of 0.089. Thus, this translates that 27% accounted for technical inefficiency. Both the sigma square and gamma coefficients were found to be statistically significant at 1% level. The Log Likelihood Function (LLF) and the Log Rati (LR) test were found to be respectively 167.7 and 34.07. The results further revealed that, although none of the farms were found to be on the frontier, however, 9 farms were very near the frontier with efficiency score range between 0.90-0.99. And twenty (20) firms have range 0.80-0.90. Race, Tapping experience, household number and extension agent’s visits were found to be technically significant and are thus critical in determining technical efficiency of rubber smallholders in Negeri Sembilan, Malaysia.

scholarly journals PROFITABILITY ANALYSIS AND DETERMINANTS OF GROUNDNUT (Arachis hypogea) PRODUCTION IN DAMBATTA LOCAL GOVERNMENT AREA OF KANO STATE, NIGERIA

2020 ◽  
Vol 1 (1) ◽  
pp. 31-39
Author(s):  
C. G. Onuwa ◽  
S. S. Mailumo ◽  
S. Y. Muhammed
Keyword(s):  
Local Government ◽  
Sampling Technique ◽  
Local Government Area ◽  
Farm Size ◽  
Farm Income ◽  
Cost Ratio ◽  
Gross Margin ◽  
Benefit Cost Ratio ◽  
Arachis Hypogea ◽  
Profitability Analysis

This study analyzed the profitability and determinants of groundnut production in Dambatta Local Government Area of Kano state. Multi-stage sampling technique was used in collecting data from eighty (80) respondents in the study area. The data generated were analyzed using descriptive statistics, farm budgeting model and regression analysis. The results revealed that the gross margin and net farm income of the farmers were N71400/ha and N59400/ha respectively. Also, the fixed and operating ratios were estimated at 0.1 and 0.41 respectively, while the benefit- cost ratio was N1.98. The coefficient of multiple determination (R2) was 0.739, implying that about 74% of the variation in the output of groundnut was accounted for by the explanatory variable inputs in the regression model. The regression coefficients of Farm size(X1) and Credit(X6) were positive and statistically significant at (p< 0.01), labour (X2) and Agrochemical(X5) were also positive and statistically significant at (p< 0.1), while Fertilizer(X4) was also positive and statistically significant at (p<0.05). The major constraints associated with groundnut production in the study area include; inadequate capital (86%), high cost of production inputs (83%) and lack of access to agricultural credit (78%). The study recommended that if these constraints are adequately tackled the productivity and profitability of the groundnut farmers will significantly improve. Onuwa, C. G. | Department of Agricultural Extension and Management, Federal College of Forestry, Jos, Plateau state, Nigeria

Determinants of technical efficiency of potato farmers and effects of constraints on potato production in Northern Ethiopia

2020 ◽  
Vol 56 (5) ◽  
pp. 699-709
Author(s):  
Adino Andaregie ◽  
Tessema Astatkie
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Principal Component ◽  
Sampling Technique ◽  
Potato Production ◽  
Efficiency Score ◽  
Farm Income ◽  
Northern Ethiopia ◽  
Cross Sectional ◽  
Significant Factors

AbstractTo improve the national average yield of potato in Ethiopia, which is very low as compared to its potential, factors that influence technical efficiency of potato production need to be determined. Therefore, the objective of this study was to investigate the determinants of technical efficiency using a cross-sectional data collected from 368 randomly selected potato producers in Northern Ethiopia using a multi-stage sampling technique. The study employed Cobb–Douglas stochastic frontier model to get farm-level technical efficiency scores. Tobit model and principal component analysis were used to determine the factors that influence technical efficiency of farm households. The results revealed that chemical fertiliser, seed potato, plot size and labour are statistically significant factors that affect potato yield. The average technical efficiency score was estimated to be 75%; and education, experience, off-farm income, household size, membership in a farmers’ association, use of irrigation water, extension contact, use of improved seed, access to product market and weak coordination of stakeholders’ were significant factors influencing technical efficiency. The findings of the study suggest that there is a need for government intervention to create strong market linkage between producers and buyers and to give appropriate training to agricultural extension agents.

scholarly journals The Impact of Credit on Technical Efficiency Among Vegetable Farmers in Swaziland

2014 ◽  
Vol 4 (1) ◽  
pp. 114 ◽  
Author(s):  
Micah B. Masuku ◽  
M. O. Raufu ◽  
Nokwanda G. Malinga
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Farm Income ◽  
Green Pepper ◽  
Access To Credit ◽  
Vegetable Farmers ◽  
The Government ◽  
The Impact

<p>Access to credit is regarded as an important intervention for improving the incomes of the rural population, mainly by mobilizing resources to more productive uses. Production of vegetables by smallholder farmers in Swaziland is inconsistent and lower than the national demand, hence the gap is filled by imports from South Africa. The purpose of the study was to assess the influence of credit on technical efficiency of smallholder vegetable farmers in Swaziland. Data were collected in 2013 from farmers through a structured questionnaire, which was administered using personal interviews. A two-stage sampling procedure was used by stratifying the vegetable farmers in the Hhohho region according to the four Rural Development Areas (RDAs). This was followed by a simple random sampling technique used to select the number of vegetable farmers from each stratum. A sample size of 120 farmers was selected from a population of 289. The Stochastic Frontier production function was used to analyze the data using the STATA program (version 12). The results revealed that credit had a negative effect on technical efficiency of cabbage and green pepper farmers, while it had a positive effect on the technical efficiency of tomato, and beetroot farmers. The technical efficiency of tomatoes and cabbage farmers was affected by age, education level, farming experience and access to credit (p &lt;0.01), while beetroot and green pepper was affected by farmer’s age, and off-farm income. (p&lt;0.05). The study recommended that vegetable farmers should increase the amount of seeds, fertilizer and chemicals used in order to improve yields. The Government of Swaziland should subsidize farming inputs and financial institutions should make credit more available to agribusinesses in order to improve the efficient use of input resources.</p>

scholarly journals Efficiency analysis of cotton production: a case study of gassol and lau local government of Taraba State, Nigeria

2018 ◽  
Vol 52 ◽  
pp. 00030
Author(s):  
Muhammad Bala ◽  
Mad Nasir Shamsudin ◽  
Alias Radam ◽  
dan Ismail Abd. Latif
Keyword(s):  
Local Government ◽  
Technical Efficiency ◽  
Function Analysis ◽  
Stochastic Frontier ◽  
Efficiency Index ◽  
Farm Size ◽  
Farm Income ◽  
Cotton Production ◽  
Gross Margin ◽  
The Government

This Study analyzed the efficiency of cotton Production in Gassol and Lau Local Government Areas of Taraba State. Data were collected with the aid of structured questionnaires administered to 81 randomly selected farmers in the study areas and analyzed using descriptive statistics and stochastic frontier production function analysis. The result revealed that majority of farmers (67.9%) were young, mostly males (86.42%) and educated (86.41%). The result of the budgeting technique showed that the total revenue (TR), gross margin (GM), net Farm income (NFI) and Return on Investment (ROI) per hectare were N55, 108.70, N21, 128.70, N20, 008.70 and N0.62 respectively. The result of the stochastic frontier production analysis revealed that the variance parameter indicates positive and significant relationship at 5% level of probability for agro-chemicals and family labour at 1% level of probability for fertilizer, labour and farm size. Mean technical efficiency index was 0.77 while the minimum and maximum technical efficiency were 0.37 and 0.97 respectively. The study also identified that low price of cotton seed and high cost of inputs are the major challenges faced by cotton producers. The study recommended that inputs should be subsidized by the government and be channeled through the community leaders.

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 Economics and Technical Efficiency of Maize Production Among Small Scale Farmers in Abuja, Nigeria: Stochastic Frontier Model Approach

2020 ◽  
Vol 2 (6) ◽  
Author(s):  
E. S. Ebukiba ◽  
L. Anthony ◽  
S. M. Adamu
Keyword(s):  
Stochastic Frontier ◽  
Farm Size ◽  
Small Scale ◽  
Stochastic Frontier Model ◽  
Gross Margin ◽  
Maize Production ◽  
Factors Influencing ◽  
The Mean ◽  
Small Scale Farmers ◽  
Model Approach

This study evaluated Economics and Technical Efficiency of Maize Production Among Small Scale Farmers in Abuja, Nigeria; Stochastic Frontier Model Approach; Multi-stage sampling technique was adopted and used. Primary data were collected through the use of well-structured questionnaire from one hundred and fifty (150) sampled respondents in the study area. Data were analyzed to achieve the specified objectives using the following tools of analysis, Descriptive Statistics, Stochastic Frontier, Gross Margin Analysis, Financial Analysis, Five Point Likert Scale, and Principal Components Analysis. The results show that majority 40.47% of the sampled respondents were among the age range of 41-50 years of age and 25.33% were within the age bracket of 31-40 years of age. The mean age of the sampled farmers is 44 years. Which indicated that Young and energetic farmers are able to withstand stress and adopt new innovations. Most 88.67% of the farmers were male. Majority 72.67% were married. The mean household size of the sampled respondents is 6 members per family. Majority (67%) of the small-scale maize farmers had 1-2 ha of land and the average farm size cultivated by the farmers was 2.576 ha. The factors influencing total output of maize were seed input (P<0.01), Farm Size (P<0.05), quantity of fertilizer (P<0.05), and labour input (P<0.01) were statistically significant variables. The results of the inefficiency components show that the factors influencing technical inefficiency includes: age (P<0.01), education (P<0.01), access to credit (P<0.05), farming experience, and household size (P<0.05) and were statistically significant. The total revenue realized by the sampled small-scale maize farmers was N238,317 on average. While the total variable costs on average basis was N109,702.93. The gross margin realized was N128667.07. The gross margin ratio was 0.54 while operating ratio calculated was 0.857 and the rate of return on investment (RORI) was 1.17. The retained component from the constraint’s analysis include Lack of Improve Seed, Lack of Transportation, Poor Storage Facilities, Inadequate Capital, and Cattle Herdsmen. The retained components explained 60% of the variation of the component included in the model. The study therefore, recommends that affordable loans and adequate capital should be made available to the small-scale maize farmers, farmers should be properly trained and educated by the non-governmental organizations and extension agents on chemical application, fertilizer use and pests and diseases control measures especially on integrated pest management (IPM). Inputs like improve seeds, fertilizer, and chemicals should be made available to farmers at subsidized rates and at appropriate time coinciding with production periods for proper usage. Provisions should be made for transportation and storage facilities for farmers, the issue of conflict between farmers and herdsmen should be brought to book and resolved amicably for peaceful coexistence.

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 ECONOMIC ANALYSIS OF CONTRACT FARMING AND TECHNICAL EFFICIENCY OF BROILER FARMERS

2021 ◽  
Vol 53 (4) ◽  
pp. 426-433
Author(s):  
Luke ADEBISI ◽  
Oluwaremilekun ADEBISI ◽  
Marvellous OWOLABI ◽  
Edet HENSHAW ◽  
Olaide ASIYANBI
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Sampling Technique ◽  
Least Square ◽  
Farm Income ◽  
Stochastic Production Frontier ◽  
Contract Farming ◽  
Credit Access ◽  
Access To Credit ◽  
Broiler Production

The study assessed the effect of contract farming on broiler production in Osun State, Nigeria. 120 farmers comprising of broiler farmers participating and not participating in contract farming were selected using multistage sampling technique. Information was elicited from the farmers with the aid of a structured questionnaire. The data were analyzed using descriptive statistics, Stochastic Production Frontier and Ordinary least square regression model. The findings of this study revealed that majority (75%) of the farmers rated the activities of contracting farming to be good and favorable, as the contract farmers earn more from broiler production than their counterparts. Average technical efficiency of the contract and non contract farmers were 0.8209 and 0.6803, respectively. The results also revealed that years of experience in broiler production, education of farmer, off-farm income, membership in farmers association, access to credit, access to veterinary services and participation in contract farming significantly affected technical efficiency of broiler farmers in the study area. Therefore, the study recommends that there should be increase in the awareness of the benefits associated with contract farming in agrarian communities, so that more farmers are encouraged to participate, as this will improve their production efficiency.

scholarly journals Technical Efficiency and Technology Gap Ratio in Cocoa Production in Nigeria: A Stochastic Metafrontier-Tobit (Sm-Tobit) Approach

2021 ◽  
Vol 2 (3) ◽  
Author(s):  
F. O. Aminu ◽  
I. A. Ayinde
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Technology Gap ◽  
Stochastic Frontier Models ◽  
Gap Ratio ◽  
Cocoa Production ◽  
The Mean ◽  
Cocoa Farmers ◽  
Technology Gap Ratio

The study analysed the technical efficiency and technology gap ratio in cocoa production in Nigeria. A multistage sampling technique was used to select 390 cocoa farmers from three zones where cocoa is commercially grown in Nigeria. Separate stochastic frontier models were estimated for farmers in Kwara, Edo and Ondo States, along with a metafrontier model to obtain alternative estimates for the technical efficiencies of farmers in the different states. Subsequently, a Tobit model was used to access the factors influencing cocoa production in the study area. Results revealed that, the average technical efficiency level was 0.685 for the pooled sample, 0.506, 0.837 and 0.713 for Kwara, Edo and Ondo States respectively, suggesting that there is substantial scope to improve cocoa production in Nigeria. The mean MTR values of 0.506, 0.837 and 0.712 for Kwara, Edo and Ondo States respectively, implied that Edo State was more technically efficient than other states in the study area.  The mean technology gap ratio (TGR) value of 84.3% indicated that, on the average, the cocoa farmers in the study areas would have to close a gap of about 15.7% in order for them to be technically efficient. The study recommended that cocoa farmers in Edo and Ondo States could improve their technical efficiency through a better management using the available technologies and resources while intervention to raise technology that will help close the gap between the regional frontier curve and the global frontier curve through raising and distributing disease resistant and high yielding cocoa seedlings to the farmers should be adopted in Kwara State.

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