Abstract
This study was designed to measure technical efficiency and identify its determinants in crop production in Lafia Local government Area of Nasarawa State of Nigeria using a stochastic frontier production model. Double stage random sampling technique was used to select 100 crop farmers from which input-output data were collected based on 2005 cropping season. The results revealed that sixty five percent (65%) of the farmers were within the age range of 31-50 years and 67% had farm size ranging from 2-4 hectares. The technical efficiency of crop production range from 32.7% to 89.4% with mean of 69.6%. Farm size and fertilizer were the major inputs that are associated with the variation in crop output. The significant socio economic variables that accounted for the observed variations in technical efficiency among crop farmers were age, gender, marital status, household size, other occupation and land ownership. It is therefore recommended that a land redistribution policy that will increase the farm size of the farmers should be initiated. Fertilizer supply at subsidized rate to farmers in the area should be encouraged.Key words: Technical Efficiency, Determinants, Crop Production.
Highlights
Efficiency measurements have been attempted in several studies (Shanmugan and Palanisami, 1993; Jayaram et al, 1989; Hang and Bagi, 1984; Kalirajan, 1981 and Junakar, 1980)
This study was conducted in Lafia Local Government Area of Nasarawa State
The results of the study revealed that technical efficiency in crop production in Lafia Local Government Area of Nasarawa State range from 32.7% to 89.4% with a mean of 69.6%
Summary
Efficiency measurements have been attempted in several studies (Shanmugan and Palanisami, 1993; Jayaram et al, 1989; Hang and Bagi, 1984; Kalirajan, 1981 and Junakar, 1980). There are two approaches to efficiency measurement; these are parametric stochastic frontier production function and the non parametric mathematical programming, commonly referred to as Data Envelopment Analysis (Sharma et al 1999, Charnes et al, 1978, Aigner et al, 1977 and Meeusen and Broeck, 1977). Several factors including socio-economic and demographic factors, farm plot level characteristics, environmental factor and non-physical factors are likely to affect the efficiency of small holding farmers. Parikh et al (1995), used stochastic cost frontier to analyze Pakistani agriculture in a two-stage estimation procedure. They found that education, number of working animals, credit per acre and number of extension visits significantly increased cost efficiency while large land holding size significantly decreased cost efficiency
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