Analysis of technical efficiency of groundnut-based cropping systems among farmers in Hong Local Government area of Adamawa State

The study analyzed the technical efficiency of groundnut-based cropping systems among farmers in Hong Local Government Area of Adamawa State, Nigeria. Data were collected from 120 randomly selected groundnut farmers using multi-stage sampling technique. The study identified two groundnut-based cropping systems, namely; sole groundnut which accounted for 39.2% of the cropping systems and groundnut/sorghum which accounted for 60.80% of the cropping systems, indicating that mixed cropping dominate groundnut enterprise in the study area. The result of the stochastic frontier production function shows that sigma squared was 0.522 and significant at 1% level, indicating good fit and correctness of the distributional form assumed for the composite error term. The value of gamma was 0.841 and significant at 1% level, suggesting that 84% of the variability in the output of farmers was due to differences in their technical efficiency. Coefficients of farm size, hired labour, family labour and herbicides were positive and significant at varying levels indicating direct relationship with the output of groundnut-based cropping systems. The analysis of the inefficiency variables shows that formal education, cropping system, primary occupation and household size decreases technical inefficiency of the farmers. Mean technical efficiency (TE) was 74% indicating that farmers have the potential to increase their TE by 26% in the short run given the current state of technology. To achieve this, farm inputs should be provided on time and at subsidized rate by government and relevant stakeholders.