Pilot Study on Bread Wheat Production Efficiency of the Small Scale Farmers in Hetosa District of Arsi Zone

Abstract

This pilot study investigates the production efficiency of the small and medium-scale farmers in bread wheat based farming system of Hetosa district in Arsi Zone of Oromiya regional state in the central part of Ethiopia. The analysis is based on the cross sectional data collected from 26 farmers selected using simple random sampling method in 2017. The wheat production efficiencies were estimated using stochastic frontier production function in which inefficiency is assumed as a function of different productivity factors. The general low level of efficiency of farmers is an indication of high potential that exists to improve the productivity of farmers through improving the efficiency level of those less efficient farmers. More farmers operate at lower efficiency level for wheat relative to barley. Whereas the opposite is true for higher efficiency level indicating that more farmers' approached the frontier for barley production relative to wheat production; possibly due to the traditional nature of the barley technologies. In the analysis of causes of inefficiencies, it has been found that average education level and proximity to development center are important factors that affect the production efficiency level positively. Total area managed by farmer is also observed to have a similar impact on the overall efficiency level of the farmers in the study area. As a result, to raise the level of bread wheat productivity in the study area, intensive efforts have to be made for the strengthening of the infrastructure, development of the social services, and the integration of agricultural activities.

Keywords: Bread Wheat, Extension Contact Farms Size, Household Size, Production Efficiency, Small-Scale Farmers, Usage of Technologies,.

DOI: 10.7176/JBAH/10-3-03

Publication date: February 29^th 2020