Estimation of farm level technical efficiency in small scale maize production in the Mfantseman Municipality in the Central Region of Ghana: A stochastic frontier approach

Abstract

The primary objective of the study was to estimate the levels of technical efficiency in small scale maize production in the Mfantseman Municipality of Ghana using the Stochastic Frontier Approach. The study also attempted to determine some socio-economic characteristics and management practices which influence technical efficiency in maize production. Responsiveness of yield to production inputs was also estimated by computing input elasticities. The marginal value product for fertilizer, labor and seed were also calculated. Finally, the marginal physical products, average physical products, relative efficiency of resource use and the returns to scale of input use were calculated. Results indicated that the mean technical efficiency of small scale maize production in the study area is 58%; however, this ranges from 17 to 99%. There is distinct and inter gender variability in technical efficiency in the maize producing villages. In addition, the number of years of school the farmer has had in formal education, age of the farmer, household size, and off – farm income activities of the farmer impact on technical efficiency. The estimated marginal physical products showed that, ceteris paribus, each additional unit use of maize seed increased output by 31 kg (0.31 bags). Fertilizer also increased output by 12 kg (0.12 bags) and labor increased output by 29 kg (0.29 bags). Lastly the estimated return to scale is 1.49 indicating increasing returns to scale of maize production in the study area. Key words: Stochastic, production, frontier, technical efficiency, Mfantseman.