ANALYSIS OF PRODUCTION RISK AND TECHNICAL EFFICIENCY OF RICE FARMING IN TARABA STATE, NIGERIA

Abstract

The study examined rice production risks and technical efficiency in Taraba State, Nigeria.  Multi-stage sampling technique was used in selecting 390 rice farmers in the 2024 farming season. Primary data was collected with the aid of questionnaire. Data was analysed using descriptive and inferential statistics. The results indicated that the average age of the farmers was 45 years old, predominantly male (84.36%), married (76.15%), with an average household size of five persons, cultivating 2.43 hectares, and possessing 11 years of experience.  The results also revealed that 61.28% had formal education, majority (69.23%) were not cooperative members and lacked access to extension services (87.69%). The trans-log stochastic frontier production function indicated that seeds, fertilisers, agrochemicals, and labour significantly and positively affected rice output, with inputs showing increasing returns to scale. Technical efficiency ranged from 0.11 to 0.99, with a mean of 0.83, indicating that farmers were technically efficient but still produced 17% below the frontier. Seeds and fertilisers were risk-reducing inputs, whereas agrochemicals and labour increased production risk. Technical efficiency improved with larger household size, higher education, more farming experience, and modern land cultivation techniques. This study concludes that input factors influence both rice output and production risk and also rice production in the study area is technically efficient, though it remains below the frontier level. The study recommends encouraging educated individuals with larger households to engage in rice farming, promoting better use of seeds and fertilisers; and enhancing government support for extension services.