Technical Efficiency on Indonesian Maize Production: Frontier Stochastic Analysis (Sfa) and Data Envelopment Analysis (Dea) Approach (original) (raw)
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IOSR Journals , 2019
The measuring of technical efficiency for cotton farms can be invaluable in estimating optimum farming practices and in identifying premeditated options for the farmers. Therefore, this paper investigates the technical efficiency of sampled cotton farmers in Northeast zone of Nigeria, using a Stochastic frontier production function (SFA), constant returns to scale (CRS) and variable returns to scale (VRS) of output-oriented Data Envelopment Analysis (DEA). Data were obtained from 349 cotton farmers using a structured questionnaire interviews. The estimates of technical efficiency based on these two aforementioned frontier methods were compared. While efficiency scores for cotton farmers differed between the SFA and the DEA models, the mean efficiency scores are fairly low for the CRS DEA model compared with the VRS DEA and SFA approaches. The mean efficiency measure (0.91) obtained from the stochastic frontier was also lower than the calculated VRS DEA (0.93) but higher than the CRS DEA (0.88). This study suggests that the role of adopting high yield variety of improved cotton seeds not only reduces inefficiency but also increases the mutual effect of inputs on the output variance, whereas technical efficiency enhances the variability of cotton production in the study area. Contribution/ Originality:The determination of technical efficiency for cotton farms can be invaluable in estimating optimum farming practices and in identifying strategic options for the farmers. Therefore, this paper is to measure the technical efficiency of cotton farmers using stochastic frontier(SFA) and data envelopment analysis (DEA), using Northeast zone in Nigeria as a case study.
Analysis of technical efficiency in maize production in Guji Zone: stochastic frontier model
Agriculture & Food Security
Background The Guji Zone in particular and Oromia region in general have a huge potential for crop production that can even contribute for the country as a whole in the struggle for achieving food security. Maize is Ethiopia’s largest cereal crop in terms of total production, acreage, and the number of farm holdings. It is one of the staple crops produced in the study area. However, the farm productivity per hectare is low compared to the national average which indicates the presence of farming inefficiency in the study area. Thus, this study was undertaken with the objective of estimating the level of farmers’ technical efficiency in maize production and identifying the factors which determine the variation in the level of technical efficiency among the farmers. Results This study was relied on the primary data collected from a sample of maize producing farm household of Adola Rede and Anna Sorra districts of the Guji Zone using a survey questionnaire. A simple random sampling tech...
Agriculture is the mainstay of Cameroon economy as it serves the purpose of employment, food, and livelihood. However, Cameroon agriculture is plague by low productivity, inefficiency in production and dependent on imports. For this reason, this study examined the technical efficiency of rice farmers in Cameroon NorthWest region. Data were collected from 144 farmers using structured questionnaires and interview schedule. The Data was analyzed using descriptive statistics and a stochastic frontier analysis. The result from the stochastic frontier analysis shows that the variance parameters (sigma square and gamma) were statistically significant. The coefficient of farm size, fertilizers, labor and herbicides were positive and significant. The mean technical efficiency level was 84 percent implying that rice farmers' technical efficiency could be increased by 16 percent if the available resources are efficiently utilized. The inefficiency model shows that credit access is the significant factor that is negatively related to technical inefficiency. This finding is in line with government efforts (SEMRY, UNVDA, CARFIC, and The Second Generation Agriculture) of providing credits to farmers to improve their productivity.
Journal of Agricultural Science and Technology, 2012
Kenya realised tremendous growth in maize production between 1964 and 1997, fueled by the introduction of high yielding hybrid maize. However, from 1997, there has been a decline in yield from 1.85 to 1.57 metric tones per hectare with observed supply shortages occasionally. Maize shortages result in famine among the poor urban and rural households. Since almost all the arable land is under cultivation, future increase in maize production will heavily depend on technical efficiency and yield improvement rather than expansion in area under production. The main objective of this study was to determine the technical efficiency of smallholder maize production in Kenya. The stochastic frontier model was used as the method of analysis to estimate several production function forms using cross-sectional household data for the 2003/2004 main cropping season. Variations in technical efficiency index across smallholder farm units were explained through a number of socio-economic, farm charac...
Developing Country Studies, 2018
Increasing agricultural productivity and efficiency in production continues to be the cornerstone of most farming systems. Most policy makers rely on such studies as it offers the pathway to agricultural growth and economic development. This research is aimed to evaluate the technical efficiency of maize farmers in the Lekie division of the Centre region of Cameroon. We employ the two staged DEA technique where we computed the technical efficiency (TE) of the various farms in the first stage based on both the constant returns to scale and the variable returns to scale. In the second stage, we used the censored dependent Tobit model to capture the determinants of technical efficiency. Mean TE indices of 0.67 and 0.95 are gotten for farmers at the constant returns to scale and variable returns to scale respectively. This indicates that there still exist potentials to increase the TE of farms in the research area. The study also recorded a scale efficiency of 0.70. Regressing the vario...
Technical Efficiency of Maize Production in Nigeria: Parametric and Non-Parametric Approach
The study was carried out to provide empirical evidence on technical efficiency of maize production in Nigeria using parametric and non-parametric approaches. The study employed annual secondary data on maize production in Nigeria from 1971 to 2010.Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) were used to estimate the technical efficiency of maize production. The results revealed that, the mean technical efficiency scores were 64.1%, 77.8% and 87.7% for technical efficiency under stochastic frontier analysis, technical efficiency of DEA constant return to scale and technical efficiency of DEA variable return to scale assumptions, respectively. These showed that the efficiency scores obtained from DEA are higher than those obtained from SFA. The results implied that, the country can expand its scope of output production by 35.5%, 22.2% and 12.3% for technical efficiency under stochastic frontier analysis, data envelopment analysis constant return to scale and variable return to scale, respectively. It is concluded that under the two methods used farmers can still expand their scope of output production through appropriate combination and use of production inputs at the given technology.
The Technical Efficiency Analysis of Rice Farming in Districts of South Borneo, Indonesia
Russian Journal of Agricultural and Socio-Economic Sciences, 2018
The technical efficiency is meant as the ability of a firm to produce maximum output given a set of inputs and available production technology. A firm that had production does not reach maximum level is supposed to be technically inefficient. This research aimed to assess the technical efficiency performance of rice farming in the Sub-District of Cerbon, the District of Barito Kuala and the Sub-Disrict of Aluh-aluh, District of Banjar by employing an econometric model of the stochastic frontier production function. The error structure of stochastic frontier production model made up of two independent components. One is a general random error and the other is an error which assumed to account for technical inefficiency in production. The method of maximum likelihood estimation (MLE) was applied to estimate parameters of the model which were then used to count the maximum level of output possible to produce by firms given a set of inputs. The technical efficiency index, expressed by TE index, 0 ≤ TE ≤ 1, was measured as the ratio between actual output and assumed the maximum level of output possible to produce. The results showed an average index of TE rice farming in the Sub-District of Cerbon, the District of Barito Kuala and the Sub-District of Aluh-aluh, District of Banjar was 0.87 indicating the performance of production was relatively good. However, there was 3.33% of all the rice farming considered technically inefficient. Such results imply that some treatments may be set to consolidate production managerial aspects in order to improve the technical efficiency of production.
The Agriculturists, 2012
A study was conducted in the year 2008-2009 to estimate the farm-size-specific productivity and technical efficiency of all rice crops. Farm-size- specific technical efficiency scores were estimated using stochastic production frontiers. There were wide of variations of productivity among farms, where large farms exhibited the highest productivity. Gross return was the highest for small farms and net return was the highest for marginal farms. The lowest net return or the highest cost of production was accrued from both the highest wage rate and highest amount of labour used in medium farms. The marginal farms experienced the highest benefit-cost ratio (BCR) followed by small and medium farms. Average technical efficiency for large, medium, small, marginal and all farms were respectively 0.88, 0.92, 0.94, 0.75 and 0.88. There were significant technical inefficiency effects in the production of rice for marginal farms only. In this case, production cannot be increased by increasing ef...
PloS one, 2012
The objective of this paper is to apply the Translog Stochastic Frontier production model (SFA) and Data Envelopment Analysis (DEA) to estimate efficiencies over time and the Total Factor Productivity (TFP) growth rate for Bangladeshi rice crops (Aus, Aman and Boro) throughout the most recent data available comprising the period 1989-2008. Results indicate that technical efficiency was observed as higher for Boro among the three types of rice, but the overall technical efficiency of rice production was found around 50%. Although positive changes exist in TFP for the sample analyzed, the average growth rate of TFP for rice production was estimated at almost the same levels for both Translog SFA with half normal distribution and DEA. Estimated TFP from SFA is forecasted with ARIMA (2, 0, 0) model. ARIMA (1, 0, 0) model is used to forecast TFP of Aman from DEA estimation. Citation: Hossain MK, Kamil AAA, Baten MA, Mustafa A (2012) Stochastic Frontier Approach and Data Envelopment Analysis to Total Factor Productivity and Efficiency Measurement of Bangladeshi Rice. PLoS ONE 7(10): e46081.
Journal of Development and Agricultural Economics, 2011
The primary objective of the study was to estimate the levels of technical efficiency in small scale maize production in the Mfantseman Municipality of Ghana using the Stochastic Frontier Approach. The study also attempted to determine some socioeconomic characteristics and management practices which influence technical efficiency in maize production. Responsiveness of yield to production inputs was also estimated by computing input elasticities. The marginal value product for fertilizer, labor and seed were also calculated. Finally, the marginal physical products, average physical products, relative efficiency of resource use and the returns to scale of input use were calculated. Results indicated that the mean technical efficiency of small scale maize production in the study area is 58%; however, this ranges from 17 to 99%. There is distinct and inter gender variability in technical efficiency in the maize producing villages. In addition, the number of years of school the farmer has had in formal education, age of the farmer, household size, and offfarm income activities of the farmer impact on technical efficiency. The estimated marginal physical products showed that, ceteris paribus, each additional unit use of maize seed increased output by 31 kg (0.31 bags). Fertilizer also increased output by 12 kg (0.12 bags) and labor increased output by 29 kg (0.29 bags). Lastly the estimated return to scale is 1.49 indicating increasing returns to scale of maize production in the study area.