Abstract
This research aims to measure the production efficiency, more specifically technical efficiency of the hybrid rice producing farms of Dighalia Upazila in Khulna District from south west region of Bangladesh, based on cross-section data collected from 80 farmers chosen randomly from the study area in 2013. In order to estimate technical efficiency, stochastic production frontier approach has been used. Estimates of OLS demonstrate that labor, fertilizer, and herbicide have positive and significant influence on rice production; on the other hand, land and seed show significant negative relation with output. However, MLE estimates indicate that land, labor, seed, and fertilizer are positively and significantly related with rice production. Study finding also indicates that technical efficiency in rice production ranges from 28 percent to 97 percent with a mean of 75 percent. Estimated gamma value is 0.94, which, confirms that there is presence of inefficiency in the production system. An attempt to identify the variables responsible for observed variations in technical efficiency among the farmers has been made by considering socioeconomic variables like age, gender, family size, education, farm size, farming experience, land fragmentation, and formal training, but, they are found to be statistically insignificant.
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