This study estimated technical efficiency of rice farmers in Niger Delta region of Nigeria. Multistage sampling technique was used to sample 300 rice farmers. A stochastic frontier production function was used to estimate technical efficiency. The study further assessed the factors that affect technical efficiency of the rice farmers. All the coefficients were found to have positively influenced paddy rice productivity. The level of efficiency of rice farmers was found to be 0.63. The study further found that gender and household size were significant determinants of technical efficiency. The study therefore recommended policies that will ensure that costs of productive inputs are affordable to farmers and improving households’ income through better prices for their output. Provision of labor saving equipment is also important in reducing inefficiencies in paddy production through reduction in labor cost.
Stochastic Frontier Production Function on the Resource Use Efficiency of Fadama II Crop Farmers in Adamawa State, Nigeria (Published)
This study assess the resource use efficiency of Fadama II beneficiary crop farmers in Adamawa state, Nigeria . Data were collected on a sample of 160 farmers and were analyzed using stochastic frontier production function. The maximum likelihood estimates (MLE) for the stochastic production function results shows that the coefficients of farm size, inorganic fertilizer, hired labour and expenses on ploughing, significantly affect food crop output of the respondents. The mean technical efficiency was 0.71 (or 71%), the mean allocative efficiency was 0.76 (or 76%) and the mean economic efficiency was 0.54 (or 54%). The study concludes that, the maximum likelihood estimates (MLE) for the stochastic production function of the coefficients of farm size(X1), inorganic fertilizer (X3), hired labour (X5) and expenses on ploughing (X6) were found to be positive and significantly affect food crop output of the respondents with the mean technical efficiency is 0.71 (or 71%). It is however recommended that, Government and other donor agencies should intensify advisory services activities on effective resource allocation, utilization and other ways of increasing farmers’ beneficiary income. Government in partnership with private sector should encourage farmers to increase its technical efficiency in food crop production which could be achieved through improved farmer specific efficiency factors, which include improved farmer education, access to credit, access to improved extension services and less crop diversification. Government to introduce mentorship and pre-job training programmes and to include the youth in policy decisions.