DETERMINANTS OF TECHNICAL EFFICIENCY OF RICE FARMERS IN WUKARI LOCAL GOVERNMENT AREA OF TARABA STATE, NIGERIA

Abstract

This study examined the technical efficiency of rice production in Wukari Local Government Area, Taraba state, Nigeria. A multi-stage sampling technique was used to randomly select 84 rice farmers for the study. Data were collected on socioeconomic characteristics, inputs and output using a structured questionnaire. Data was analysed using descriptive statistics, gross margin analysis and stochastic frontier production function. Gross margin analysis revealed a mean gross revenue of N453,000, mean variable costs of N173, 000 and a mean gross margin of N280, 000 per hectare. Four factors were significant in determining technical efficiency.  These were Farm size (0.85), labour (0.29) and agrochemicals (0.03) at P≤0.01.  Fertiliser (0.01) was significant at P≤0.05.  This implied that one more unit increase in farm size, labour, agrochemicals and fertiliser would result in an increase in output by 85%, 29%, 3% and 0.01%, respectively.  Mean technical efficiency for rice farmers studied was 81%, with a minimum of 29.5% and a maximum of 89.5%.  three factors were significant in determining technical inefficiency.  These were farming experience (-0.35), household size (-35.18) and level of education (-4.48), all significant at P≤0.01.    The result showed that high cost of labour ranked 1^st, high costs of fertilisers and high costs of herbicides both ranked 2^nd followed by farm credit unavailability which ranked 3^rd among the constraints to rice farming. It was concluded that rice farming was a profitable business, requiring improvements in technical efficiency of the farmers and tackling of the challenges for optimum output and greater revenue.  It was recommended that facilitating access to adequate and affordable inputs will improve farmers’ technical efficiency