Abstract
The study was aimed to measure the levels of wheat productivity of producers and identify factors affecting them in Horo district of Horoguduru Wollega Zone, Oromia Region, Ethiopia. The study was based on cross-sectional data collected in 2016/17 production season from 124 randomly selected farm households. Stochastic production frontier model was used to estimate technical efficiency levels and used to identify factors affecting efficiency levels. Accordingly, the mean technical efficiency of sample household’s was 63.9%.The results indicated that there was substantial amount of in efficiency in wheat production in the study area. Land, seed, DAP and chemical were the variables that positively affected the production of wheat. Results of the factor model revealed that family size, experience in wheat production and extension contact positively and significantly affected technical efficiency. Total cultivated land had a significant negative effect on technical efficiency. Results indicate that there is a room to increase the efficiency in wheat production of the study area. Therefore, government authorities and other concerned bodies should take into consideration the above mentioned socio economic and institutional factors to improve the productivity of wheat in the study area. Keywords: wheat, technical efficiency, , stochastic, Horo district DOI : 10.7176/JPID/52-01 Publication date: January 31 st 2020
Highlights
Agricultural sector is a cornerstone of many developing countries including Ethiopia, in promoting economic growth and development of the economy
A stochastic frontier model was selected in the analysis of technical efficiency of wheat production in Horo district
SUMMARY AND CONCLUSION Agricultural sector in Ethiopia is characterized by its poor performance, whereas the population of the country, which to a large extent depends on agriculture, is growing at a faster rate
Summary
Agricultural sector is a cornerstone of many developing countries including Ethiopia, in promoting economic growth and development of the economy. It accounts 46% of GDP, over 90% of the foreign exchange earnings, 83% of employment generation and providing 70% raw material for the industries in the country (EPOSPEA, 2015). 95% outputs obtained from the sector was mostly depends on rain-fed production system that dominated by smallholders (MoARD, 2011). The export diversification prospect is mainly focused on agricultural products and this would bolster the contribution of agriculture for the export sector. Agriculture contributes about 50% of the gross domestic product of the country. In the years that nature generously provided the rains in the appropriate times, we see a reasonably good overall macroeconomic performance
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