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Determinants of Profit Efficiency Among Small Scale Rice Farmers in Nigeria: A Profit Function Approach

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  • Kolawole, Ogundari

Abstract

This study employs a stochastic frontier approach to examine profit efficiency of small scale rice farmers in Nigeria using farm-level survey data collected from 200 farmers in the study area. Data were analysed using descriptive statistics and standard profit function. The result shows that about 60 percent of potential profit is gain due to production efficiency while the remaining can be attributed to both technical and allocative inefficiencies in the study area. Also, the result further revealed that age, educational level, farming experience and household size positively affected profit efficiency. These variables are thus important in policy formulation by government.

Suggested Citation

  • Kolawole, Ogundari, 2006. "Determinants of Profit Efficiency Among Small Scale Rice Farmers in Nigeria: A Profit Function Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25238, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25238
    DOI: 10.22004/ag.econ.25238
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    Cited by:

    1. Elahi, Ehsan & Weijun, Cui & Zhang, Huiming & Nazeer, Majid, 2019. "Agricultural intensification and damages to human health in relation to agrochemicals: Application of artificial intelligence," Land Use Policy, Elsevier, vol. 83(C), pages 461-474.
    2. Akpan, Sunday Brownson & Patrick, Inimfon Vincent & Udoka, Samuel James, 2012. "Stochastic Profit Efficiency of Homestead based Cassava Farmers in Southern Nigeria," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 2(03), pages 1-8, September.
    3. Fatima, Hina & Shaheen, Sania & Almas, Lal & Vestal, Mallory & Haroon, Sehrish, 2018. "Production Efficiency Analysis between Transplanting and Direct Seeded Rice Producers in Punjab, Pakistan," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 267162, Southern Agricultural Economics Association.
    4. Bahta, Sirak & Malope, Patrick, 2014. "Measurement of competitiveness in smallholder livestock systems and emerging policy advocacy: An application to Botswana," Food Policy, Elsevier, vol. 49(P2), pages 408-417.
    5. Sirak Bahta & Amos Omore & Darek Baker & Iheanacho Okike & Berhanu Gebremedhin & Francis Wanyoike, 0. "An Analysis of Technical Efficiency in the Presence of Developments Toward Commercialization: Evidence from Tanzania’s Milk Producers," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-24.
    6. Richard E.O Pearce & Abdullah Bah, 2024. "Estimation of Efficiency and the Effect of Access to Finance on Efficiency of Small and Medium Enterprises (SMES) in the Western area of Sierra Leone," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 14(1), pages 1-1.
    7. K. Ogundari, 2008. "Resource-productivity, allocative efficiency and determinants of technical efficiency of rainfed rice farmers: A guide for food security policy in Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(5), pages 224-233.
    8. Jean Marie Abega Ngono & C¨¦lestin Chameni Nembua & Moses Abit Ofeh, 2019. "Financing Enterprises to Boost Employment in Cameroon," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(10), pages 77-92, October.
    9. Bac Ho & Teruaki Nanseki & Yosuke Chomei, 2019. "Profit efficiency of tea farmers: case study of safe and conventional farms in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(4), pages 1695-1713, August.
    10. Odu, O.O. & Okoruwa, V.O., 2013. "Effect of Credit Constraint on Profit of Small Scale Rice-Based Farmers in Niger State, Northwestern Nigeria," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161649, African Association of Agricultural Economists (AAAE).
    11. Le Ngoc, H., 2018. "Contract farming effects on technical efficiency of the export-oriented rice production sector in Vietnam," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277409, International Association of Agricultural Economists.
    12. Wongnaa, C.A. & Awunyo-Vitor, D. & Mensah, A., 2018. "Profit Efficiency of Ghana's Maize Farmers," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277009, International Association of Agricultural Economists.
    13. Sirak Bahta & Amos Omore & Darek Baker & Iheanacho Okike & Berhanu Gebremedhin & Francis Wanyoike, 2021. "An Analysis of Technical Efficiency in the Presence of Developments Toward Commercialization: Evidence from Tanzania’s Milk Producers," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 502-525, June.
    14. Adeyemo, Remi & Kehinde, Ayodeji Damilola & Gbadebori, Nafisat Oluwatayo, 2023. "The Profit Efficiency Of Moringa Oleifera Production In Osun State, Nigeria," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 17(2), December.

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