Technical Efficiency Analysis of Small Scale Cassava Farmers in Cross River State, Nigeria: A Stochastic Production Frontier Approach

Kingsley Okoi Itam, Eucharia Agom Ajah, Uket Ikpi Ofem and Otu Ewa Abam

Applied Economics and Finance, 2015, vol. 2, issue 4, 10-18

Abstract: The stochastic production frontier was employed in the analysis of the technical efficiency of small scale cassava farmers in Cross River State. A multi-stage random sampling technique was adopted in selecting two hundred (200) cassava farmers from Ikom and Ogoja Agricultural zones in the State. Structured questionnaires were used in collecting data for the study. A stochastic production function, using the Maximum Likelihood Estimating (MLE) technique, was used in estimating the farmer's technical efficiency and their determinants in the study area. The mean technical efficiency of the cassava farmer's was 89%. The result of the generalized Likelihood Ratio (LR) tests confirm that the cassava farmers were technically inefficient, implying that there is room to improve technical efficiency with the farmers' current resource base and available technology. Age and sex of the farmers had negative but significant effect on their technical efficiency, while education, family size, farming experience and farm size had significant and positive influence on farmer's technical efficiency. Therefore, policies that would encourage experienced and educated farmers, especially women to continue in cassava farming are recommended.

Keywords: Cassava farmers; technical efficiency; small scale; maximum likelihood; stochastic frontier; determinants. (search for similar items in EconPapers)
Date: 2015
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