Analysis of the technical efficiency of rice farms in Ijesha Land of Osun State, Nigeria

Abstract

This study estimated technical efficiencies on rice farms in Osun State, Nigeria, and identified some socioeconomic factors, which influence productive efficiency. These technical efficiencies were estimated using the stochastic frontier production function approach applied to primary data. A translog production function was used to represent the production frontier of the rice farms. The study showed that the levels of technical efficiency ranged from 29.4% to 98.2% with a mean of 86.6%, which suggests that average rice output falls 13.4% short of the maximum possible level. Therefore in the short run there is scope to increase technical efficiencies on rice farms in the study area. The study also showed that these efficiencies are positively and significantly correlated with the application of traditional preparation methods, and with off-farm income.