Comparative analysis of technical efficiencies between compound and non compound farms in Imo state, Nigeria

Abstract

This study was designed to compare the level of technical efficiency in the compound and non compound farms in Imo state. A multi-stage random sampling technique was used to select 120 food crop farmers from two out of the three agricultural zones in Imo state. Using the Chow (1960) analysis of covariance technique the farmers were found to be equally technically efficient in the two farm types. The result showed that capital, labour and other inputs such as seeds, fertilizers and agro-chemicals are highly significant determinants of technical efficiency in the two farm types. The results of the returns to scale showed that the farmers operated in region one of their production functions. This is suggestive of the possibility of higher crop output with an increase in the level of aggregate input use in both farm types at the prevailing level of technology.