Abstract
To test the effects of access to information on efficiency in small scale agriculture, we formulate a standard stochastic frontier (SF) model which is augmented with a technical efficiency model that allows for an index which captures farmers’ ability to access information. The index is constructed as a 2-parameter Rasch model. Panel data on small scale agricultural production in Uganda is used in the construction of the index and the estimation of the SF model. We find empirical evidence of a significant and positive relationship between farmer ability to access information and farm efficiency. Mean efficiency for farmers with greater access to information is 90%, about 33% higher than efficiency of farmers with lower access to information. Our findings underscore the need for greater access to ICT equipment and agriculture related information services for small scale farmers in developing countries.
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