Abstract:
The study evaluates the performance of small scale maize producers in Nigeria using
stochastic input distance function (SIDF) and variable returns to scale data envelopment
analysis (VRS DEA). Further, it examines the determinants of technical efficiency using the
double‐bounded Tobit regression model. Results show that maize farmers are operating
below the frontier. Technical efficiency estimates from SIDF and VRS DEA models are 86.7
percent and 85.5 percent, respectively. The efficiency estimates obtained from the two
models are positively and significantly correlated. Given the high correlation between the
two models in our analysis, and for individual variance and bias reduction, the efficiency
scores from these models for each farmer are further combined into a single index using the
principal component analysis (PCA) approach. Technical efficiency from the integrated
model is 86.2 percent. Our findings show that maize production could still be raised by
improving farm efficiency. Age, education, household size, membership of a farmer group,
access to credit, and market were found to be statistically significant in explaining technical
efficiency, thus emphasizing the need for policy intervention in improving farm efficiency.
