Efficiency of small scale vegetable farms: policy implications for the rural poverty reduction in Nepal

Poverty and hunger reduction are intertwined challenges and enduring issues in the world, particularly in developing countries. Improvement in the efficiency in vegetable farming helps the farmers increase the per capita income, reduce poverty and eventually improve the livelihood of smallholder farmers. This paper evaluates economic efficiency of vegetable farms in Nepal using a non-parametric data envelopment analysis (DEA) approach. The results show evidence to suggest that vegetable farms in Nepal have a considerable potential for improving the vegetable production efficiency with a greater access to improved seed, agricultural credit, and training and extension services. Some policies options with regard to the vegetable production technology, and support services for farmers in general and women farmers in particular, are suggested to increase the farm efficiency. While some of these support services are currently available, we suggest that a more focus be given to creating the improved market access, to the women focused extension, and to training packages for the sustainable production. These support services can lead to increases in the farm income and to reduce poverty.