Analysis of cost efficiency of rainfed maize production in Yola North and Yola South Local Government Areas of Adamawa State, Nigeria

Abstract

This study analyzed the allocative (cost) efficiency of rainfed maize production in Yola North and Yola South Local Government Areas of Adamawa State, Nigeria. Purposive and simple random sampling techniques were used to select 128 respondents. The data collected were analyzed using descriptive statistics and stochastic frontier cost function model. Results revealed that the respondents had a mean age of 39 years and have large household sizes. The sampled farmers are experienced and cultivated an average of about two hectares of land. The respondents had also acquired one form of formal education or the other with primary school as the least. The results of the maximum likelihood estimate parameters of the stochastic frontier cost function revealed that cost of land and cost of seeds, cost of hired labour and cost of agrochemicals were significant at different level of probabilities. The allocative efficiency indices revealed that allocative efficiency of the sampled farmers ranged from 0.44 to 0.98 with a mean of 0.68, implying that an average farmer in the study area has the scope for increasing cost efficiency by 32% given the existing technology. The study recommends provision of adequate farm inputs and essential services at low cost to rainfed maize farmers.

Allocative Efficiency of Maize Production in Chikun Local Government Area of Kaduna State, Nigeria

“…The significant of maize output value, cost of labour, cost of fertilizers, cost of maize seeds and cost of transportation at 1% level of probability implies that these are the most critical factors affecting the total cost of production in the study area. This result is in agreement with the works of Abdul M et al [1] and Ogundari K et al [6]. Abdul M et al [1], reported a gamma value of 0.8286 and all the parameters measured for cost efficiency were positively signed.…”

“…This result is in agreement with the works of Abdul M et al [1] and Ogundari K et al [6]. Abdul M et al [1], reported a gamma value of 0.8286 and all the parameters measured for cost efficiency were positively signed. Similarly, Ogundari K [6], obtained a gamma value of 0.805 and all the parameters measured were positively signed.…”

“…The results of the maximum likelihood estimate parameters of the stochastic frontier cost function revealed that cost of land and cost of seeds, cost of hired labour and cost of agrochemicals were significant at different level of probabilities. The allocative efficiency indices revealed that allocative efficiency of the sampled farmers ranged from 0.44 to 0.98 with a mean of 0.68, implying that an average farmer in the study area has the scope for increasing cost efficiency by 32% given the existing technology [1].…”

“…According to Abdul M et al [1], efficiency is an important aspect that needs to be considered in agriculture in order to increase production and distribution of resources optimally so as to meet the food demand of the increasing population in the world. Attention in agriculture has shifted long ago from mere production to efficiency in production by giving more priority to the optimum production plan in order to maximize yield or minimize cost of production or maximize profit or combination of these as they reflect the key objectives of any business firm.…”

“…Many researchers have used this method to estimates cost efficiency in different fields of study. Abdul M et al [1], used the model to conduct a study analyzing the allocative (cost) efficiency of rainfed maize production in Yola North and Yola South Local Government Areas of Adamawa State, Nigeria in which purposive and simple random sampling techniques were used to select 128 respondents and the results revealed that the respondents had a mean age of 39 years and have large household sizes. The study also revealed that sampled farmers are experienced and cultivated an average of about two hectares of land.…”