Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers

The purpose of this study was to analyse the determinants of technical efficiency of small scale farmers in Nigeria and the effect of policy changes on technical efficiency, using the stochastic frontier methodology. Results of analysis indicates that the farmers have an average farm size of 1.56 hectares. It is also indicated that both family and hired labour were extensively used in farm production. The analysis shows a wide variation in the estimated technical efficiencies, ranging between 0.18 and 0.91, and a mean value of 0.63, indicating a wide room for improvement in the technical efficiency. The results of simulation of policy variables show that the level of technical efficiency would significantly increase with rising level of education and farming experience.Farm Management,

Linking Socio-Economic and Policy Variables to Technical Efficiency of Traditional Agricultural Production: Empirical Evidence from Nigeria

The major objective of this study was to analyze and link the level of technical efficiency of Nigerian small-scale farmers to specific farmers' socio-economic and policy variables. Data were collected on 461 food crop farmers selected from five states of Southwestern Nigeria. The selection of respondent farmers was multi-stage and involved random sampling method, stratification as well as purposive sampling. The collected data were analyzed with the use of stochastic frontier production modeling technique. The results show that while farmers socio-economic and policy variables significantly influenced the level of technical efficiency, education has the highest marginal effect on technical efficiency while gender has the least marginal effect. The highest mean technical efficiency of 0.77 occurs among group of farmers within 7-12 years of schooling (secondary school education group) while the least mean technical efficiency (0.54) occurs within the category of farmers with years of schooling within 1-6 years. The findings of the study has a number of policy implications, including the need to formulate and implement agricultural policies that will enable farmers acquire basic education necessary to read, write and understand instructions on application and adoption of new farming innovations.Traditional agriculture, socio-economic variables, policy variables, Technical efficiency, Nigeria, Productivity Analysis,

AN ANALYSIS OF FARM-RETAIL PRICE SPREAD FOR JAMAICAN FRESH FRUITS

This paper uses the relative price spread model to analyze the farm-retail spread for pineapple, pawpaw and watermelon in Jamaica. Our findings suggest that price increase in the retail market is not being passed down to pineapple and pawpaw farmers and only marginally to watermelon farmers.Demand and Price Analysis,

Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers

The purpose of this study was to analyse the determinants of technical efficiency of small scale farmers in Nigeria and the effect of policy changes on technical efficiency, using the stochastic frontier methodology. Results of analysis indicates that the farmers have an average farm size of 1.56 hectares. It is also indicated that both family and hired labour were extensively used in farm production. The analysis shows a wide variation in the estimated technical efficiencies, ranging between 0.18 and 0.91, and a mean value of 0.63, indicating a wide room for improvement in the technical efficiency. The results of simulation of policy variables show that the level of technical efficiency would significantly increase with rising level of education and farming experience

Linking Socio-Economic and Policy Variables to Technical Efficiency of Traditional Agricultural Production: Empirical Evidence from Nigeria

The major objective of this study was to analyze and link the level of technical efficiency of Nigerian small-scale farmers to specific farmers' socio-economic and policy variables. Data were collected on 461 food crop farmers selected from five states of Southwestern Nigeria. The selection of respondent farmers was multi-stage and involved random sampling method, stratification as well as purposive sampling. The collected data were analyzed with the use of stochastic frontier production modeling technique. The results show that while farmers socio-economic and policy variables significantly influenced the level of technical efficiency, education has the highest marginal effect on technical efficiency while gender has the least marginal effect. The highest mean technical efficiency of 0.77 occurs among group of farmers within 7-12 years of schooling (secondary school education group) while the least mean technical efficiency (0.54) occurs within the category of farmers with years of schooling within 1-6 years. The findings of the study has a number of policy implications, including the need to formulate and implement agricultural policies that will enable farmers acquire basic education necessary to read, write and understand instructions on application and adoption of new farming innovations

DETERMINANTS OF TECHNICAL INEFFICIENCY IN FARM PRODUCTION: THE CASE OF NDE FARMERS IN ONDO STATE, NIGERIA

The study estimates the determinants of technical inefficiency among the farmers that are participating in the Ondo State chapter of the National Directorate of Employment program in Nigeria. Using a tobit analysis, it was found that extension visits, higher education, land input and membership of farm association were significant factors influencing technical efficiency. This suggests that education, efficiency in supply of inputs and public awareness are key factors necessary for policy consideration

Impact of Policy Changes on Technical Efficiency on Farmers: Empirical Evidence From Nigerian Small Scale Food Crop Farmers

The study quantitatively determine the impact of policy changes on technical efficiency of small scale food crop farmers in Ondo State, Nigeria, using the stochastic frontier methodology. Given the specifications of the Cobb-Douglas Stochastic frontier models, the results show that the elasticity of mean value of farm output is an increasing function of land, labour and implements. The mean value of farm output is also estimated to be an increasing function of agrochemicals and seeds. The results indicate that an increasing returns-to-scale exists among the farmers. The analysis shows a wide variation in the estimated technical efficiencies, ranging between 0.22 and 0.89. The results of simulation on policy variables show that the level of technical efficiency would significantly increase with rising level of education, farming experience and amount of credit used and decline with the age of the farmers

AN ANALYSIS OF FARM-RETAIL PRICE SPREAD FOR JAMAICAN FRESH FRUITS

This paper uses the relative price spread model to analyze the farm-retail spread for pineapple, pawpaw and watermelon in Jamaica. Our findings suggest that price increase in the retail market is not being passed down to pineapple and pawpaw farmers and only marginally to watermelon farmers