Economic Efficiency of Rice Productionin Smallholder Irrigation Schemes: A Case of Nkhate Irrigation Scheme in Southern Malawi

Ruth Magreta

No 198524, Research Theses from Collaborative Masters Program in Agricultural and Applied Economics

Abstract: This study used a parametric frontier approach to analyze technical, allocative and economic efficiency of smallholder rice farmers. It further explored the factors that influence the efficiency levels of the rice farmers. The study used a trans-log stochastic production function to analyze the technical efficiency. It used the trans-log cost frontier to analyze the economic efficiency. Results from these efficiencies led to the derivation of the allocative efficiency levels. It further used the inefficiency model to analyze the factors underlying efficiency differentials among the sampled farming households. Results revealed an average technical, allocative and economic efficiency levels of 65%, 59% and 53% respectively. This suggests that farmers have a rice yield potential of 35% to be exploited. The average economic efficiency level entails that farmers can raise their profitability or rice production by 47% by adjusting input use. Soil fertility status, access to credit, household size and farmers experience were the factors that influence the efficiency levels of smallholder rice farmers. It is thus recommended that for improved efficiency levels there is need for better policies and strategies that address input and output markets. Furthermore, farmer groups or associations can play a great role in ensuring that farmers get relevant technical advice, credit access as well as learn and share knowledge from each other.

Keywords: Agricultural and Food Policy; Farm Management; International Development (search for similar items in EconPapers)
Pages: 100
Date: 2011-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/198524/files/R ... a%20MSc%20Thesis.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:cmpart:198524

DOI: 10.22004/ag.econ.198524

Access Statistics for this paper

More papers in Research Theses from Collaborative Masters Program in Agricultural and Applied Economics
Bibliographic data for series maintained by AgEcon Search ().