Profit Efficiency among Rain-Fed Rice Farmers in Northern Taraba State , Nigeria

Abstract

The study analyzed the profit efficiency of rain-fed rice farmers in Northern zone of Taraba state by collecting data from 156 respondents in 2013. A measure of profit efficiency was provided using stochastic profit frontier and inefficiency model. The results showed that there were high levels of inefficiency in rice production. The mean level of profit efficiency was 59% indicating that 41% of the profit was lost due to a combination of both technical and allocative inefficiencies. The profit inefficiency model showed that age, education, farming experience, household size and access to credit facilities increased the profit efficiency of the respondents. It is therefore, recommended that learning opportunities, farm inputs and credit facilities should be made available to farmers in appropriate time.

Keywords: Efficiency, Profit-function, Rice, Taraba State.