Technical efficiency of traditional and hybrid maize farmers in Nigeria : comparison of alternative approaches

Abstract

In this study, technical efficiency of traditional and improved maize farms as well as impact of technological innovation on technical efficiency were investigated. Two-stage procedure was followed. In the first stage, technical efficiency scores were obtained from four different models namely parametric stochastic distance frontier, parametric stochastic production frontier and two nonparametric distance frontiers and the results were compared. In the second stage, efficiency estimates from each of the four methods were regressed against hybrid seed and other policy variables using Tobit model. A total of 240 farm households were selected for the study using a multistage random sampling technique. The selected households were interviewed using semi-structured questionnaires. Results showed that farmers operated with substantial technical inefficiency irrespective of the approach employed. Technical efficiency estimates obtained from the distance frontier approaches are positively and significantly correlated. In all the models, hybrid seed was found to have positive and significant impact technical efficiency. Other policy variables that had significant impact on technical efficiency include education, extension, credit and land. These results reinforce the need for further investment in agricultural research and development for increased productivity, food security and poverty reduction in Nigeria.