Understanding the Allocative Efficiency of Cassava Farms in Imo State, Nigeria

Abstract

In Nigeria and particularly in Imo State, cassava is one of the mostly cultivated and useful root crop. These crop not only contribute to the share of agriculture in national economy, but possess a great potential and comparative advantage to compete in the liberalized economy. Despite all these potentials of cassava, empirical studies on the allocative efficiencies of cassava farmers in Imo State, have not been fully and systematically documented. On the other hand, most empirical studies on cassava have focused mainly on participation and level of adoption of cassava improved technologies. It is on this backdrop that the study was undertaken. Specifically, the study described the socio-economic characteristics of cassava farmers in the study area and allocative efficiency of cassava farmers in the study area and Multistage random sampling technique was used in the selection of respondents. Sample size comprised ninety (90) cassava farmers. Well structured questionnaire was the main tool for data collection. Data collected were analyzed using descriptive statistical tools, and stochastic frontier production model and cost function. Result show that the mean age was 47.00 years. Greater proportions (73.33%) were female. Majority (76.67%) were married with an average household size of 6 persons. The mean educational level and farming experience were secondary and 28years respectively. Average farm size and annual farm income were 1.42ha and N500,500.00 respectively. Reasonable proportions (81.11%) were members of cooperative society. The estimated gamma (γ) parameter of stochastic frontier production function showed that about 82.7% variation in output among cassava farmers in the study area was due to differences in relative efficiency. The return to scale (RtS) was 0.549 in the study area. This indicates a positive decreasing return to scale and that cassava production was in stage II of the production region where resources and production were believed to be efficient. The mean allocative efficiency was 0.860. The policy implication of these findings is that cassava farmers in the study area were efficient in allocating their resources considering their scope of operation and the limited resources. Result also showed that education, membership of cooperative, extension contact, farming experience and household size were farmers socio-economic characteristics that have a significant influence on their relative efficiencies. Hence, the second hypothesis was rejected. It was recommended that farmers particularly on their own should judiciously pool productive resources together through strengthened and stable cooperative society group as this would enhance their relative efficiencies in cassava production positively in the area. Moreover, effective agricultural policies and programmes should focus on granting farmers improved access to farm credit as these would enable them increase their production efficiencies positively in the area. Government at all levels should identify genuine cassava farmers and grant them easy access to farmland as these would significantly increase their relative efficiencies and standard of living positively in the area.

Keywords: Allocative efficiency; Cassava; stochastic frontier production model; Imo State, Nigeria

DOI: 10.7176/JESD/10-19-09

Publication date:October 31^st 2019