Socio-economic characteristics and allocative efficiency of upland rice farmers in Ogun State, Nigeria

Abstract

The paper analysed the relationship between allocative efficiency and a set of socio-economic variables. A multi-stage sampling procedure was used to select 165 rice farmers from six local government areas (LGAs) from the 10 rice-producing LGAs in Ogun State. The paper considered a Cobb-Douglas stochastic frontier cost function applied to farm-level data of upland rice farmers in Ogun State to empirically determine the level of allocative inefficiency, using a single-stage model. The theoretical model predicts a positive relationship among cost of production, capital and output of paddy rice. The study showed a positive and significant relationship between allocative efficiency and farmers’ age, access to technical assistance and extension services. Policy measures aimed at increasing rice farmers’ access to technical assistance and extension services will go a long way toward boosting rice production in the study area.