Technical Efficiency of Small-Holder Cocoyam Farmers in Anambra State Nigeria: Implications for Agricultural Extension Policy

Abstract

This study employed the Cobb-Douglas stochastic frontier productionfunction to measure the level of technical efficiency in small-holdercocoyam production in Anambra state, Nigeria. A multi-stage randomsampling technique was used to select 120 cocoyam farmers in the statein 2005 and from them input-output data were obtained using the costrouteapproach. The parameters of the stochastic frontier productionfunction were estimated using the maximum likelihood method. The resultof the analysis shows that individual farm level technical efficiency wasabout 95%. The study found education and farming experience to bepositively and significantly related to technical efficiency at 1% whilepractice index, fertilizer use and membership of cooperative societies alsohad a direct relationship with technical efficiency and were significant at5% level. Age and farm size had an indirect relationship with technicalefficiency and was significant at 1% and 5% level respectively. Therewere no significant relationship between technical efficiency andknowledge index, credit access and family size. Expected increases inagriculture require increase in agricultural productivity. In other words,agricultural productivity very much depends on the efficiency of theproduction process. Hence, policies designed to educate people throughproper agricultural extension services will have a great impact inincreasing the level of efficiency and hence agricultural productivity ofthese farmers.