Profit Efficiency among Smallholder Rice Farmers in Central Liberia

Abstract

Rice is staple food in Liberia and therefore self-sufficiency in rice production remains a major concern. However, Liberia is experiencing insufficiency in rice production due to high production cost and low national average output of 1.2 t/ha, which is significantly low as compared to other West African Countries. This has resulted in the increased importation of rice in the country consequently taking significant portion of the nation’s foreign exchange. The best and most effective way to improve productivity and profitability is through more efficient utilization of scare resources. This study was conducted to analyze profit efficiency among smallholder rice farmers in Nimba and Bong Counties, Central Liberia. The results indicated that smallholder rice farmers were not operating at full profit efficiency level. Profit efficiency level varies among the farmers ranging from 13% to 93%, with mean efficiency level of 67%. To operate on the full profit efficiency levels, on average, the sample rice farmers would need to reduce their costs by approximately 28%. Inefficiency in rice production was significantly influenced by farming experience, household size, access to credit and extension services, membership to farmers’ group and market information access (P<0.05). It is recommended that in order to improve profit efficiency among smallholder rice farmers, there should be programs which focus on increasing access to credit and extension services and farmers should be encouraged to join or form association which may bring benefits to them.

Keywords: Profit efficiency, smallholder rice farmers, Liberia