Estimating cost inefficiency of food crops farmers in Imo state, Nigeria

Abstract

This study used survey data on input costs and total cost of production by 90 proportionate randomly selected food crops farmers in Imo state, to measure farm level cost inefficiency using a behavioural approach. The farmers were cost inefficient. The mean level cost inefficiency was 0.59, and the level ranged from 0.91 – 0.44 by individual farms. Major determinants of cost-inefficiency were education, farm size, family labour use, extension and credit. Food crops production costs can still be reduced in Imo State through increased efficiency in input markets, price legislation and provision of subsidy. br>
Journal of Agriculture, Forestry and the Social Sciences Vol. 3 (2) 2005: pp.24-31