ECONOMIC EFFICIENCY AMONG SMALL HOLDER ARABLE CROP FARMERS IN KEBBI STATE

Abstract

The economic efficiency, determinants of production and the sources of inefficiency in arable crop production in Kebbi State are investigated using a stochastic frontier profit function which incorporates a model for inefficiency effects. Data were generated using the cost route approach from a sample of 96 farm households selected from the four agricultural zones of the state during the 2004 cropping season using the multi-stage stratified random sampling techniques. Results show that size of land holding (hectares) and capital inputs are the major factors associated with changes in the output of arable crops. Of the farmer’s specific socioeconomic variables, only three, namely: level of education, extension contact and cooperativeness were found to be the significant factors accounting for the variation in efficiency among small holder arable crop farmers. It recommends policies that would encourage land consolidation, attainment of basic formal education by the farmers and strengthening the existing extension services in the state.