Abstract

  Since the last decade, cash crop farming in Laos has significantly been changing. The changes have made farmers required high input factors (labor, land, fertilizer and so on) to increase productivity. Meanwhile, farmers have low level of technical efficiency and operating farms unproductive. Therefore, the objectives of this study were to estimate the technical efficiency (TE) of maize farmers and identify an inefficient factor that affects maize yield in Northern Laos. The Cobb-Douglas and translog stochastic frontier production function were used to estimate the technical efficiency and its determinants in maize yield. This study was the first to report on technical efficiency of maize farmers in Laos. The finding of this study revealed that the labor and machinery costs were found to have positive and significant effect on maize yield. The mean technical efficiency was 65%; this implies that the output per farm can be increased on an average by 35% for maize farmers under prevailing technology, without increasing any additional inputs. Only 30.6% of the total sample farmers obtained more than 81% of technical efficiency score. Other factors which affect maize yield showed that farmers with higher level of maize growing experiences and their farms on low elevation (<360 m) can reduce the farmer’s inefficiency. For the educated farmers, elder farmers, farm size, and hybrid seeds variable has a potential to reduce technical inefficiency.   Key words: Maize, farmers, stochastic frontier, productivity, Laos. &nbsp

Highlights

  • Lao rural livelihood is mainly based on natural resources and agricultural sector

  • This study has presented measure of technical efficiency and identified factors related with efficiency of a sample of 98 maize farmers in Bokeo province, Laos

  • The technical efficiency and its determinant have been investigated through the Cobb-Douglas and translog functional form

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Summary

Introduction

Lao rural livelihood is mainly based on natural resources and agricultural sector. In the year 2000, the Commercialization of Agricultural Production Policy was introduced throughout country. The objectives of the policy were aimed at modifying the farming systems, enhancing of rural livelihoods through economics and agricultural reforms. In Laos, the agricultural system is characterized by two major type of farms: namely the upland farm is on slope or plateau areas, rain-fed, slash-and- burn cultivation, the rotational shifting and traditional practices (humans labor based); and the lowland farm is rain-fed and /or irrigated farming system is usually located on flatland along the foothill and river flood plains with machinery based for cultivation. In the northern Laos, various cash crops have been introduced to the local farmers. Maize is ranked second in terms of production areas. Maize production was successful in generating incomes for farmers, and

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