Evaluating the performance of small scale maize producers in Nigeria : an integrated distance function approach

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.