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Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers

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  • Ajibefun, Igbekele A.

Abstract

The purpose of this study was to analyse the determinants of technical efficiency of small scale farmers in Nigeria and the effect of policy changes on technical efficiency, using the stochastic frontier methodology. Results of analysis indicates that the farmers have an average farm size of 1.56 hectares. It is also indicated that both family and hired labour were extensively used in farm production. The analysis shows a wide variation in the estimated technical efficiencies, ranging between 0.18 and 0.91, and a mean value of 0.63, indicating a wide room for improvement in the technical efficiency. The results of simulation of policy variables show that the level of technical efficiency would significantly increase with rising level of education and farming experience.

Suggested Citation

  • Ajibefun, Igbekele A., 2002. "Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 7015, International Farm Management Association.
    • Handle: RePEc:ags:ifma02:7015
    DOI: 10.22004/ag.econ.7015
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    2. Ayinde, I.A. & Ashaolu, O.F. & Adewuyi, S.A. & Omosowon, O.B., 2011. "Comparative technical efficiency of pond fish production under two management systems in Abeokuta Metropolis, Ogun State, Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 2(1).
    3. Wubeneh, Nega & Ehui, Simeon K., 2006. "Technical Efficiency of Smallholder Dairy Farmers in the Central Ethiopian Highlands," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25640, International Association of Agricultural Economists.
    4. Kaine, A.I.N., 2015. "Analysis of crop enterprise combination among small holder farmers in delta north agricultural zone, delta state, Nigeria," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 5(05), pages 1-8, May.
    5. Mbehoma, Petermus M. & Mutasa, Felician, 2013. "Determinants of Technical Efficiency of Smallholders Dairy Farmers in Njombe District, Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2), July.
    6. Gelaw, Fekadu, 2013. "Inefficiency and Incapability Gaps as Causes of Poverty: A Poverty Line-Augmented Efficiency Analysis Using Stochastic Distance Function," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), pages 1-45, August.
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    8. Nmadu, Job N. & Simpa, James O., 2014. "Rethinking The Technical Efficiency Of Small Scale Yam Farmers In Nigeria Using Conventional And Non-Conventional Inefficiency Parameters," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165866, Australian Agricultural and Resource Economics Society.
    9. El-Rasoul, Ahmed Abou El-Yazid & alomar, Ibrahim Saleh, 2012. "دراسة اقتصادية تحليلية لكفاءة استخدام أنماط الري الحديثة: دراسة ميدانية بمزارع منطقة القصيم [An analytical economic study for the efficiency of water resources use in irrigation, “A field study at ," MPRA Paper 98655, University Library of Munich, Germany.
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    11. Ogunbameru, A. & Okeowo, T.A., 2013. "Resource Utilization Behaviour Of Cassava Producers In Epe Area Of Lagos State: Stochastic Frontier Production Function Approach," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161530, African Association of Agricultural Economists (AAAE).

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