Analysis of Technical Efficiency Differentials among Maize Farmers in Nigeria
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Date
2011-11-30
Authors
Olarinde, Luke Oyesola
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research consortium
Abstract
This study analyses technical efficiency differentials and their determinants among maize
farmers in Nigeria. A total sample of 300 maize farmers from Oyo and Kebbi States (150
from each) was selected, and data on input-output and socioeconomic variables were
collected and analysed using descriptive statistical methods and by applying a translog
frontier production function to the data.
Results show that in the two states surveyed, the sizes of farms were small, and they
were mostly managed by hired labour in Oyo State, and by family labour in Kebbi State.
The results also indicate that the sampled farmers are not technically efficient, with mean
technical efficiencies of only 0.5588 and 0.5758 in Oyo and Kebbi states, respectively.
However, there are increasing returns to scale in both states. The main determinants of
technical efficiency were found to include extension services and farm distance in the two
states, farming experience in Oyo State, and credit accessibility, number of other crops
grown and rainfall (precipitation) in Kebbi State. Furthermore, the study found that the
differences in the mean technical efficiency levels of the farmers did not emanate from
the absolute differences in the individual efficiencies among the farmers in the various
farming communities. Nonetheless, there were significant absolute differences in the
mean efficiencies among farmers in the zones of each of the two states, and the difference
in the mean technical efficiencies of the two states was found to be highly significant.
The study concludes that there is considerable room for improving the technical
efficiencies in the two states. This, however, calls for the motivation of the farmers
by making available more production inputs. It is suggested that these farmers are
empowered with appropriate financial means to acquire these inputs and to hire more
labour. In this way, farmers will be able to allocate more land to maize cultivation. When
this is done, farmers’ productivity will improve, resulting in maximum return of farmers’
output (in quantity and value terms) per input use and, consequently, increasing their
income. This will ultimately reduce hunger and alleviate poverty.