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Farm size, relative efficiency and agrarian policy in Côte d'Ivoire: profit function analysis of rice farms

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  • Akinwumi A. Adesina
  • Kouakou K. Djato

Abstract

This paper examines the relative economic efficiency of small and large rice farms in Côte d'Ivoire using a profit function approach. No differences in the relative economic efficiency of small and large farms were found. This conclusion is robust under alternative model specifications. Agrarian reforms directed towards further concentration of landholding for large farms in Côte d'Ivoire cannot be justified based on economic efficiency. Results show that access to credit and use of modern rice varieties significantly increase profits. To improve technical efficiency of rice farms, an accelerated program to provide information, credit, improved seeds and other inputs is needed. When all the farms (i.e. large and small) are taken together, there is evidence of allocative inefficiency. Strategies are needed to remove such management related inefficiencies in rice production either through the development of a better market price information system or effective farmer‐oriented technical training programs by rice extension workers.

Suggested Citation

  • Akinwumi A. Adesina & Kouakou K. Djato, 1996. "Farm size, relative efficiency and agrarian policy in Côte d'Ivoire: profit function analysis of rice farms," Agricultural Economics, International Association of Agricultural Economists, vol. 14(2), pages 93-102, July.
    • Handle: RePEc:bla:agecon:v:14:y:1996:i:2:p:93-102
    DOI: 10.1111/j.1574-0862.1996.tb00406.x
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    Cited by:

    1. Jean-Paul Chavas & Ragan Petrie & Michael Roth, 2005. "Farm Household Production Efficiency: Evidence from The Gambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 160-179.
    2. Abdulai, Awudu & Huffman, Wallace, 1998. "An Examination of Profit Inefficiency of Rice Farmers in Northern Ghana," Staff General Research Papers Archive 1380, Iowa State University, Department of Economics.
    3. Satriawan, Elan & Swinton, Scott M., 2005. "Does Human Capital Raise Farm or Non-farm Earning More? New Insight from Rural Pakistan Panel Survey," 2005 Annual meeting, July 24-27, Providence, RI 19207, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Gelan, Ayele & Muriithi, Beatrice W., 2015. "Examining Returns to Scale in Smallholder Dairy Farms in East Africa," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(3), pages 1-23, September.
    5. Msangi, Haji Athumani, 2017. "Examining The Inverse Relationship Between Farm Size And Efficiency In Tanzanian Agriculture," Research Theses 276448, Collaborative Masters Program in Agricultural and Applied Economics.
    6. Pham, Huong Dien & Waibel, Hermann, 2018. "Risk attitudes, knowledge, skills and agricultural productivity," TVSEP Working Papers wp-007, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    7. Seidu Al-hassan, 2008. "Technical Efficiency of Rice Farmers in Northern Ghana," Working Papers 178, African Economic Research Consortium, Research Department.
    8. Obeng, Isaac Antwarko & Adu, Kofi Osei, 2014. "Cost efficiency of cocoa farmers in Twifo Hemang Lower Denkyira Area in Central Region of Ghana," MPRA Paper 59925, University Library of Munich, Germany.
    9. Isaac Gershon Kodwo Ansah & Hayford Oduro & Awuah Lartey Osae, 2014. "A Comparative Analysis of Profit Efficiency in Maize and Cowpea Production in the Ejura Sekyedumase District of the Ashanti Region, Ghana," Research in Applied Economics, Macrothink Institute, vol. 6(4), pages 106-125, December.
    10. Antonio Arbelo & Marta Arbelo-Pérez & Pilar Pérez-Gómez, 2022. "Are SMEs less efficient? A Bayesian approach to addressing heterogeneity across firms," Small Business Economics, Springer, vol. 58(4), pages 1915-1929, April.
    11. Li, Xingguang & Huo, Xuexi, 2021. "Impacts of land market policies on formal credit accessibility and agricultural net income: Evidence from China's apple growers," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    12. Romain Houssa & Paul Reding & Albena Sotirova, 2017. "Methodological issues of an impact evaluation of development support in agriculture," BeFinD Working Papers 0120, University of Namur, Department of Economics.
    13. Kouakou Kra Djato, 2001. "Crédit agricole et efficacité de la production agricole en Côte d'Ivoire," Économie rurale, Programme National Persée, vol. 263(1), pages 92-104.
    14. Place, Frank, 2009. "Land Tenure and Agricultural Productivity in Africa: A Comparative Analysis of the Economics Literature and Recent Policy Strategies and Reforms," World Development, Elsevier, vol. 37(8), pages 1326-1336, August.
    15. Savadogo, Kimseyinga & Reardon, Thomas & Pietola, Kyosti, 1998. "Adoption of improved land use technologies to increase food security in Burkina Faso: relating animal traction, productivity, and non-farm income," Agricultural Systems, Elsevier, vol. 58(3), pages 441-464, November.
    16. Solano, C. & Leon, H. & Perez, E. & Tole, L. & Fawcett, R.H. & Herrero, M., 2006. "Using farmer decision-making profiles and managerial capacity as predictors of farm management and performance in Costa Rican dairy farms," Agricultural Systems, Elsevier, vol. 88(2-3), pages 395-428, June.
    17. Muange, Elijah N. & Godecke, Theda & Schwarze, Stefan, 2015. "Effects of social networks on technical efficiency in smallholder agriculture: The case of cereal producers Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 230221, International Association of Agricultural Economists.
    18. Rios, Ana R. & Shively, Gerald E., 2005. "Farm size and nonparametric efficiency measurements for coffee farms in Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Rougoor, Carin W. & Trip, Ger & Huirne, Ruud B. M. & Renkema, Jan A., 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, Blackwell, vol. 18(3), pages 261-272, May.

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