EFFECTS OF IRRIGATION TECHNOLOGY ADOPTION ON FARMS PERFORMANCE IN ALGERIA: A STOCHASTIC FRONTIER PRODUCTION FUNCTION APPROACH

Abstract

The aim of this study is to evaluate the performance of water-saving technologies (WST) through an investigation of its effect at the farm level. Indeed, the study attempts to estimate the economic value of WST use in Algerian farming, through the comparison of some farm performance indicators between WST adopters, drip irrigation system as a WST, and farmers practicing gravity irrigation as a traditional system. A cross-section data from a survey is conducted in an irrigated perimeter situated in the north-eastern Algeria (Jijel region) encompassing 106 small horticultural farms (including 60 pepper producers and 46 tomato producers). First, the study compares some performance indicators between the two groups of farms. Second, a stochastic production frontier model is used to estimate the productivity gain generated by the WST adoption. Main results show that water consumption, gross margin, and water productivity are statistically significant between the two groups of farms. The average water productivity differential between WST users and non-users is 29% and 25% for tomato and pepper, respectively. The regression model has shown that increasing the WST use by 1% help to increase water productivity of the region by 0.20% for pepper production and 0.11% for tomato production. The findings of this study confirm the hypothesis that WST economize on water quantity, positively affects crop yield and can enhance water productivity.