Analysis of cost efficiency of rainfed maize production in Yola North and Yola South Local Government Areas of Adamawa State, Nigeria

Abstract

This study analyzed the allocative (cost) efficiency of rainfed maize production in Yola North and Yola South Local Government Areas of Adamawa State, Nigeria. Purposive and simple random sampling techniques were used to select 128 respondents. The data collected were analyzed using descriptive statistics and stochastic frontier cost function model. Results revealed that the respondents had a mean age of 39 years and have large household sizes. The sampled farmers are experienced and cultivated an average of about two hectares of land. The respondents had also acquired one form of formal education or the other with primary school as the least. The results of the maximum likelihood estimate parameters of the stochastic frontier cost function revealed that cost of land and cost of seeds, cost of hired labour and cost of agrochemicals were significant at different level of probabilities. The allocative efficiency indices revealed that allocative efficiency of the sampled farmers ranged from 0.44 to 0.98 with a mean of 0.68, implying that an average farmer in the study area has the scope for increasing cost efficiency by 32% given the existing technology. The study recommends provision of adequate farm inputs and essential services at low cost to rainfed maize farmers.

Keywords: Cost efficiency, rainfed, maize production, Yola, Adamawa, Nigeria