COMPARATIVE STUDY ON TECHNICAL EFFICIENCY OF MAIZE PRODUCING FARMS IN NIGERIA

Abstract

The paper compared the technical efficiency levels of maize farms in Nigeria using data envelopment analysis (DEA) and slacks-based measure (SBM) of efficiency model. Slacks based super-efficiency and ordinary least square models were also used to examine the super-efficient farms and the causes of technical inefficiency in the study area. The mean technical efficiency scores of DEA and SBM models were 0.78 and 0.66, respectively, implying that farmers could increase their corresponding efficiency levels by 22% and 34% with the current inputs level and technology. The findings indicated that there is a statistically significant difference (P≤0.01). Between the technical efficiency scores of DEA and SBM models as well as the inputs slacks at varying levels of probability. The variation in the efficiency estimates was attributed to the inherent bias nature of DEA model which does not capture the whole aspect of inefficiency. Thus, SBM model gives more accurate and reliable estimates than the conventional DEA and hence it is reliable. Moreover, the results showed that 15 farmers were super-efficient and regarded as those that utilized inputs optimally during production process. The inefficiency analysis revealed that experience, education, extension services and age have significant impact on technical efficiency. Therefore, the study concluded that maize farmers who had many years of experience and are also privilege to meet with extension personnel have tendency to acquire new skills and operate at the optimum efficiency level. The study recommended that super-efficient farmers should be used as a bench-mark by the inefficient ones since they have the ability to use their farm inputs optimally. This can reduce inefficiencies and lead to more output and reduced production costs as well.