Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Markose Chekol Zewdie, Michele Moretti, Daregot Berihun Tenessa, Zemen Ayalew Ayele, Jan Nyssen, Enyew Adgo Tsegaye, Amare Sewnet Minale and Steven Van Passel
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Markose Chekol Zewdie: Department of Engineering Management, Faculty of Business and Economics, University of Antwerp, Stadscampus, Prinsstraat 13, 2000 Antwerp, Belgium
Michele Moretti: Department of Engineering Management, Faculty of Business and Economics, University of Antwerp, Stadscampus, Prinsstraat 13, 2000 Antwerp, Belgium
Daregot Berihun Tenessa: Department of Economics, Peda Campus, College of Business and Economics, Bahir Dar University, Bahir Dar P.O. Box 79, Ethiopia
Zemen Ayalew Ayele: Department of Agricultural Economics, Zenzelima Campus, Bahir Dar University, Bahir Dar P.O. Box 79, Ethiopia
Jan Nyssen: Department of Geography, Ghent University, Krijgslaan 281, S8, 9000 Gent, Belgium
Enyew Adgo Tsegaye: Department of Natural Resource Management, Zenzelima Campus, Bahir Dar University, Bahir Dar P.O. Box 79, Ethiopia
Amare Sewnet Minale: Department of Geography and Environmental Studies, Peda Campus, Bahir Dar University, Bahir Dar P.O. Box 79, Ethiopia
Steven Van Passel: Department of Engineering Management, Faculty of Business and Economics, University of Antwerp, Stadscampus, Prinsstraat 13, 2000 Antwerp, Belgium

Land, 2021, vol. 10, issue 3, 1-17

Abstract: In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

Keywords: a technology-flexible stochastic frontier approach; Ethiopia; irrigation user and non-user farmers; large-scale irrigation user farmers; small-scale irrigation user farmers (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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