Technical Efficiency Variation for Irrigated Maize Producers: A Stochastic Frontier Approach

Abstract

The study was conducted to estimate technical efficiency levels of irrigated maize farmers and to identify efficiency influencing variables among them supplemented by Tibila surface water Irrigation scheme which is found in the Great Rift Valley of Ethiopia. A stochastic frontier production model was used to estimate the levels of technical efficiency for randomly selected 113 irrigated maize producers and provides an empirical analysis of the determinants of inefficiency so as to search out the way to increase smallholders’ maize production and productivity using one step estimation technique. The descriptive result revealed that the mean of maize yield per quarter of hectare is 960 quintal which is lower than the plot level agronomic standard of the project i.e. 12 quintal. The classical test for the production variables indicates that they were not used at the plot level agronomic standard input requirement of the project.The econometric result of the study found that old aged household head, low levels of education, lack of credit services and limited livestock holding were found to have a positive effect on technical inefficiency of irrigated maize farmers. Providing irrigated maize producers with accurate and reliable information when they use factors of production, granting credit facility, strengthening households’ livestock ownership and livestock marketing system, improving educational level of farmers through necessary aids and reliefs are recommended policy implications.

Keywords: Technical Efficiency, Irrigated Maize, Smallholder Farmer, Stochastic Production Frontier, Tibila irrigation project.