Technical Efficiency Analysis of Maize Farmers in the Eastern Region of Ghana

John K M,Wayo Seini

doi:10.22610/jsds.v4i2.739

Abstract

This study assesses the technical efficiency and its determinants of maize farmers in the Eastern Region of Ghana. A multi stage random sampling procedure was employed to select 226 maize farmers from the four main geographical areas of the region for the study. A well-structured questionnaire and field observations were employed to collect relevant information from the respondents. Data collected was analyzed using relevant econometric techniques. The results indicate that elasticities of mean output for agrochemicals, hired labor, other inputs are positive while those of seed, fertilizer and family labor are negative. The computed return to scale on the other hand reveals that, on average, the maize farms exhibit decreasing returns to scale. The joint effect of operational and farm-specific factors influence technical efficiency but individual effects of some variables are not significant. Mean technical efficiency level of the farmers is estimated to be 51%, indicating that the possibility of increasing maize production in the region given the current state of technology and inputs level can be achieved in the short run by increasing the technical efficiency level of the farmers by 49% through the adoption of practices of the best maize farmer. Further, the empirical results from the inefficiency model show that extension visit, FBO membership, frequency of meeting by members of FBOs, formal training in maize farming, cash and in-kind credits are the major determinants of the farmersâ€™ technical efficiency level. Finally, the resource use efficiency results revealed that agro-chemicals and hired labor are under-utilized whereas seed, fertilizer and family labor are over-utilized by maize farmers in the region. These results have implications for management of small and medium scale food crop farms in developing countries.

Highlights

Agriculture sector contributes 25.6% to Ghana’s GDP after the Services and Industrial sectors, and is the most important sector driving Ghana’s economic growth
84.1% of the farmers engaged themselves in other works such as: other food crop production, cash crop production, artisanship, petty- trading in addition to their maize production, whereas only 15.9% cultivated maize alone
The computed return to scale on the other hand reveals that, on average, the maize farms exhibit decreasing returns to scale

Summary

Introduction

Agriculture sector contributes 25.6% to Ghana’s GDP after the Services and Industrial sectors, and is the most important sector driving Ghana’s economic growth. Agriculture accounts for the greatest proportion of Ghana’s export earnings with principal Agricultural exports being cocoa, timber, horticultural products, fish/sea foods, game and wildlife. It is solely responsible for providing food security for both the rural and urban population. Maize in particular is the first among the main crops contributing to Ghana’s food security and increases farmers’ disposable income through their investment in its production in areas such as improved seeds, fertilizer and machinery use. The farmer spends a very small part of the income from maize on the household and is able to improve his or her knowledge base. In the Eastern Region of Ghana, yield of maize from the farms ranges from 0.8 to 3.6 tons per hectare which are far below the maximum yield of 5.5 to 6 tons per hectare (Kwarteng and Towler, 1995; MoFA, 2006)

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Conclusion