Technical Efficiency and its Determinants in Yam Production in Bosso Local Government Area, Niger State, Nigeria

Abstract

This paper investigates farm level technical efficiency of production and its determinants in a sample of 80 yam producing farms in Bosso Local Government Area (LGA), Niger State, Nigeria using a stochastic frontier production function approach applied to cross-sectional data generated during the 2006 cropping season. Farmers were selected using random sampling procedure. Results indicate that technical efficiency of production in the sample of yam producing farms investigated ranges from a minimum of 18.60 per cent to a maximum of 92.60 per cent with an average technical efficiency estimate of 80.90 per cent. This suggests that there are prospects for increasing their production by as much as 19.10 per cent by reallocating the existing resources more optimally. Results also show that the estimated coefficients in the technical efficiency model indicate that farm size and level of personal income have positive effects on technical efficiency of yam farmers. However, a negative relationship between technical efficiency and extension contact is found. It is recommended that farmers should expand their farm sizes which necessitates the introduction and re-strengthening of existing favourable credit policies. The central body coordinating extension services should be encouraged by motivating staff directly involved in disseminating production information to increase output.