The World’s Largest Open Access Agricultural & Applied Economics Digital Library

This document is discoverable and free to researchers across the

globe due to the work of AgEcon Search.

Help ensure our sustainability.

Give to AgEcon Search

AgEcon Search
http://ageconsearch.umn.edu
aesearch@umn.edu

Papers downloaded from AgEcon Search may be used for non-commercial purposes and personal study only.
No other use, including posting to another Internet site, is permitted without permission from the copyright
owner (not AgEcon Search), or as allowed under the provisions of Fair Use, U.S. Copyright Act, Title 17 U.S.C.
 Invited paper presented at the 6th African
Conference of Agricultural Economists,
September 23-26, 2019, Abuja, Nigeria

Copyright 2019 by [authors]. All rights reserved. Readers may make verbatim copies of this
document for non-commercial purposes by any means, provided that this copyright notice
appears on all such copies.
 Analysis of technical efficiency among Irish potato farmers in plateau state, Nigeria

Ogheneruemu OBI-EGBEDI
Department of Agricultural Economics, University of Ibadan, Nigeria.
Email: gheneobi@gmail.com

Dominic Midawa GULAK*

Department of Agricultural Economics, University of Ibadan, Nigeria.
Email: dominicmidawa@gmail.com

*Corresponding author

Abstract

Previous researches focused on evaluation of technical efficiency on profitability and

marketing of Irish-potato in Plateau state, without due consideration for technical efficiency
among Irish-potato farmers arising from given level of inputs use and its determinants. This
study therefore analyses technical efficiency, its determinants and the returns to scale of Irish-
potato farmers in Plateau State by performing a two-stage estimation procedure to run the
stochastic frontier model. The data used was obtained from a sample of 252 Irish-potato
farmers and the efficiency estimates showed disparities in technical efficiency among the
farmers; mean technical efficiency of 89±4% indicating the farmers still have room for
improvement of their efficiency in production. The returns to scale showed decreasing returns
to scale; indicating that in the long run, output will increase less proportionately to increase in
inputs. Socio-economic factors such as sex, extension visits, membership of cooperative
society and farming experience were positive determinants of farmers’ technical efficiency
while household size had a negative effect on technical efficiency. The study concludes that
there is gap in Irish-potato production efficiency and suggests increased extension visits and
membership of cooperative societies among the farmers in order to attain optimal level of
efficiency.

Key words: technical efficiency; returns to scale; stochastic frontier model; Irish potato.

1. Introduction

Irish potato has been reported to be a major efficient tuber crop in terms of tuber yield and
days to maturity (Sanusi & Babatunde 2017).Within 80 – 90 days, it matures as compared to
9–12 months for other tubers such as yam and cassava. Nigeria is the fourth largest Irish potato
producer in sub-Saharan Africa and seventh largest producer in Africa, with an output of
1,284,370 metric tonnes and yield per hectare of 37,201 hg/ha (3,720.1 kg/ha) (FAOSTAT,
2019). Domestic consumption of both fresh and processed Irish potato stands at 4.63kg/capita
(FAOSTAT, 2015). The crop is widely cultivated in commercial quantities in Plateau state
(Ojo, 2013); although, it is an underexploited food crop with a huge unrealized potential to
improve food security, income and human nutrition (Schulte-Geldermann 2013).

The establishment of the Potato Research Centre, Kuru- Plateau State by the National Root
Crops Research Institute (NRCRI) in 1976 marked the beginning of rapid expansion of Irish
potato production in Nigeria. Despite notable efforts devoted to the development and transfer
of new technologies to improve Irish potato production in Plateau State; including Irish potato
seeds multiplication, training of farmers, Irish potato research, breeding and selection of new
improved varieties (Zemba et al. 2013); annual Irish potato production in the state stands at
900,000 metric tonnes (Jwanya et al. 2014). This output level has not been increasing at farm
level while yields have continued to decline substantially and remain lower than potential
yields (FAOSTAT, 2016). This is an indication that technological advances generated through
research and investments have not widely translated into improved efficiency.

The focus of researchers and policy makers on Irish potato production in recent time has mainly
been on efficiency and adoption of new technologies in farm operations in order to boost output
and increase income. Although growth in output is not determined by introducing new
technology alone, but by the efficiency with which the existing technologies and inputs are
used (Kiptoo et al. 2016; Jwanya et al. 2014). It has been found that several Irish-potato farmers
are losing in outputs due to inefficiency in resource use; and attaining high technical efficiency
remains a major problem amongst many smallholder Irish potato farmers (Kiptoo et al. 2016).

Previous research works carried out on Irish potato focused on the agronomic practices,
marketing efficiency, growth and productivity of the crop (Okonkwo et al. 2009; Wuyep et al.
2013; Zemba et al. 2013; Sanusi et al. 2017). Although Alabi et al. (2006) and Daniel et al.
(2018) assessed potato farmers, their evaluation was based on profitability and marketing of
the crop without due consideration for technical efficiency in production arising from level of
inputs used and factors determining technical efficiency levels. Little attention has been given
to technical efficiency among Irish potato farmers in Nigeria. Given Nigeria’s continuous
population growth of 4.82% per annum, food demand growth of 6.5% annually (UN 2017) and
food production aggregate growth of 3.7% per annum (Liverpool-Tasie et al. 2011; Akaate
2011; NBS 2016), efforts must be concerted to close up this deficit and reduce food insecurity.
Irish potato has a high potential to contribute to food security improvements in Nigeria if
efficiency levels are improved (Sanusi & Babatunde 2017). However, knowledge of the factors
that determine technical efficiency among Irish potato farmers in Nigeria is scanty. Therefore
this study aims to investigate the technical efficiency of Irish potato farmers, response of output
to the inputs used and the determinants of technical efficiency of Irish potato farmers in Plateau
State, Nigeria.

2. Methods and Data

2.1 Description of Data

This study was carried out in Plateau State, located in North-Central Nigeria. Descriptive
statistics and stochastic frontier model were used to estimate technical efficiency with its
determinants, and response of output to inputs of Irish potato farmers in the study area.

Primary data was collected based on the 2017/2018 farming season by means of a well-
structured and validated questionnaire through a multi-stage sampling method. In the first
stage, two (2) local government areas were randomly selected out of the five major Irish potato
producing local government areas of Plateau State. These were Bokkos and Mangu. The next
stage involved a simple random sampling of three (3) districts each from the list of eight (8)
districts in each of the two (2) local government areas. This gave a total of six (6) districts from
which three (3) villages each were selected randomly from the list of villages giving a total of
eighteen (18) villages. The last stage involved a random sampling of Irish potato farmers from
the 18 villages in proportion to their size. Thus, a total of 260 Irish potato farmers were selected
but only 252 gave complete information which was used for data analyses.

2.2 Theoretical Framing and Estimation Procedure

The stochastic frontier production function model, through the maximum likelihood estimation
procedure is preferred in empirical analysis and found to be asymptotically more efficient than
the method of ordinary least square (Umoh 2006; Florence et al. 2018). The technical
efficiency of an individual farm firm is defined in terms of the ratio of observed output (Yi) to
the corresponding frontier output (𝑦𝑦𝑖𝑖∗ ) conditional on the level of inputs used by the firm, and
given the available technology. Thus:

𝑦𝑦 𝑓𝑓(𝑥𝑥𝑖𝑖 𝛽𝛽𝑖𝑖 )𝑒𝑒𝑒𝑒𝑒𝑒(𝑣𝑣𝑖𝑖 −𝑢𝑢𝑖𝑖 )

𝑇𝑇𝑇𝑇𝑖𝑖 𝑦𝑦 ∗𝑖𝑖 𝑖𝑖. 𝑒𝑒 𝑇𝑇𝑇𝑇𝑖𝑖 = 𝑓𝑓(𝑥𝑥𝑖𝑖 𝛽𝛽𝑖𝑖 )𝑒𝑒𝑒𝑒𝑒𝑒𝑣𝑣𝑖𝑖
𝑇𝑇𝑇𝑇𝑖𝑖 = exp(−𝑢𝑢𝑖𝑖 ) ....................... (1)
𝑖𝑖

Where: TEi = Technical efficiency of farmer i, Yi = observed output from farm i, and 𝑦𝑦𝑖𝑖∗ =
Frontier output. So that 0 ≤ TEi ≤1. Thus, the technical inefficiency is equal to 1 – TE
Model Specification
A two-stage estimation procedure was used in this study to run the stochastic frontier
production function.
Stage one: Cobb-Douglas production function was used to estimate the technical efficiency
of Irish potato farmers in the study area. The Cobb-Douglas functional form was chosen
because it is flexible, self-dual, easily adaptable for most agricultural productions and its
returns to scale are easily interpreted (Bravo-Ureta & Evenson, 1994).
The model used for this study, followed that of Florence, et al., (2018) and Dube et al., (2018)
with a little modification in explanatory variables. The production function is as shown below:
Y = 𝑓𝑓(𝑥𝑥) … … … … … … … … … … … .. (2)
The farmers’ technical efficiency is given by the equation of stochastic production frontier
assuming the Cobb-Douglas production function is expressed as:
𝑌𝑌𝑖𝑖 = 𝑓𝑓(𝑋𝑋𝑖𝑖 ; β) + ε𝑖𝑖 : i = 1, 2, 3...n........... (3)
Where:
𝑓𝑓(𝑋𝑋𝑖𝑖 ; β) is a suitable function (Cobb-Douglas)
Yi = Output of ith farmer
Xi = Vector of actual quantity used by the actual
β = Vector of unknown parameters to be estimated
εi = Composite error term made up of the sum of Vi and Ui denoted by Coelli & Battese (1996)
and used by Florence et al., (2018)
εi =Vi –Ui, i=1,2, . . . , n
V and U are assumed to be independent of each other, where:
Vi = decomposed error term measuring technical efficiency of the farmer. It is normally
distributed with a mean of zero and constant variance[ 𝐕𝐕𝐕𝐕 ˜ 𝑁𝑁(0, 𝜎𝜎𝑣𝑣2 )]. The symmetric
component Vi captures stochastic effects (variation in the output) beyond the farmers control.
Ui = the inefficiency component of the error term that accounts for the shortfall from the
stochastic frontier (it captures the technical inefficiency of the farmer).

The Stochastic frontier production model is thus stated explicitly as:

𝑙𝑙𝑙𝑙𝑙𝑙 = β0 + β1 𝑙𝑙𝑛𝑛 𝑥𝑥1 + β2 𝑙𝑙𝑛𝑛 𝑥𝑥2 + β3 𝑙𝑙𝑛𝑛 𝑥𝑥3 + β4 𝑙𝑙𝑛𝑛 𝑥𝑥4 + β5 𝑙𝑙𝑛𝑛 𝑥𝑥5 + 𝑣𝑣𝑖𝑖 − 𝑢𝑢𝑖𝑖 .................. (4)
Where:
𝑌𝑌 = Output of Irish potato (Total quantity of Irish potato harvested in kg),
𝑥𝑥1 = Farm size (Ha),
𝑥𝑥2 = Quantity of Irish potato seed planted (Kg),
𝑥𝑥3 = Quantity of fertilizer used (Kg),
𝑥𝑥4 = Agrochemicals (Litres),
𝑥𝑥5 =Total labour used (Man-days)
𝑣𝑣𝑖𝑖 = decomposed error term measuring technical efficiency of the farmer
𝑢𝑢𝑖𝑖 = the inefficiency component of the error term
𝑙𝑙𝑙𝑙 = the natural logarithm
β’s = coefficients to be estimated
2
Variance parameters: sigma-square (σ ), gamma (γ) and lambda (λ)
2 2 2 2 2 2 2
Also the following relationships σ = σv + σu ; γ = σv / σ ; λ =σv /σu
2 2 2
Where: σ , σv , σu are the overall variance of the model, variance of the random error, and

variance of the technical inefficiencies respectively, γ is gamma and λ is lambda. The variances
of the random errors, ơv2 and that of the technical inefficiency effects ơu2, and the overall
variance of the model ơ2 are related thus: ơ2 = ơv2+ ơu2 and the ratio γ = ơu2/ơv2, measures the
frontier which can be attributed to technical efficiency (Battese & Corra 1977) and used by
Balogun & Akinyemi 2017; and Florence et al. 2018.

Gamma (γ) ranges between zero and one (Battese & Tessema 1993). According to Battese &
Corra (1977), gamma (γ) is the total output made on the frontier function which is attributed to
technical efficiency. Similarly (1- γ) measures the technical inefficiency of the farms. The
parameter lambda (λ) is expected to be greater than one. This condition according to Tadesse
& Krishnamoorthy (1997) indicates a good fit for the model and the correctness of the specified
distribution assumptions for vi and ui

Stage Two: Determinants of Technical Efficiency

Apart from determining farmers’ technical efficiency in Irish potato production, this study also
identified the determinants of the farmers’ technical efficiency. According to Rahji (2005) to
identify the determinants of technical efficiency, a second stage of estimation procedure is
used. Hence, using this procedure the technical efficiencies empirically identified was
regressed against the farm and farmers characteristics that were hypothesized to influence it.
Based on empirical evidence from several researches, these determinants include age of the
farmer, farm experience, and marital status, level of education, sex, household size and contact
with extension agents, among others (Rahji 2005 and Kadiri et al. 2014).
The technical efficiency values are assumed to range between zero and one; that is, as fixed
given values. However, these values cannot be assumed to be normally distributed (Ekanayake
1987). At this stage it violate the assumption of ordinary least square which states that
dependent variable should be normally distributed with mean of zero and a constant variance
[ 𝑁𝑁(0, 𝜎𝜎 2 )]. Thus, Ekanayake (1987) suggested that the technical efficiency index estimated
must be transformed into the natural logarithm of the ratio of the technical efficiency to
technical inefficiency as transformed technical efficiency (TTE). This transformation makes it
possible for the technical efficiency ratio to assume any value (Rahji 2005). The dependent
variable for the estimating equation thus becomes:

𝑇𝑇𝑇𝑇𝐸𝐸 = ln(𝑇𝑇𝑇𝑇 ⁄1 − 𝑇𝑇𝑇𝑇 ) ......................... (5)

Where;
TTE= Transformed Technical Efficiency
TE= Technical Efficiency
The independent variables hypothesized to determine technical efficiency is explicitly stated
as:
𝑈𝑈𝑖𝑖 = α0 + α1 𝑍𝑍1 + α2 𝑍𝑍2 + α3 𝑍𝑍3 + α4 𝑍𝑍4 + α5 𝑍𝑍5 + α6 𝑍𝑍6 + 𝑒𝑒𝑖𝑖 ....................... (6)
Where:
Ui = Transformed technical efficiency variable
Z1 = Sex (Male=1, Female= 0)
Z2= Access to credit (Yes=1, No= 0)
Z3 = Contact with extension agent (Number of visits)
Z4 = Membership of cooperative society (member=1, Non member=0),
Z5 = Farming Experience (Years),
Z6 = Household size of farmers (Number of persons in the household),
ei= Error term,
While α0, α1, . . ., α6 are parameters to be estimated.
The β’s and α’s are scalar parameters that were estimated, which reflect the elasticity of the
agricultural inputs on output.

3. Results and Discussions

3.1 Socio-economic Characteristics of Irish Potato Farmers in the Study Area

As indicated on Table 1 Irish potato farming is dominated by male farmers (71.43%) and
majority of the farmers (73.81%) are married. The mean farmer age is 48±11 years indicating
that Irish-potato farming in the study area is dominated by an agile workforce. The mean
household size is approximately 11±5 persons, indicating a large household size. The result
also shows that the farmers have an average of 9±5 years educational attainment; only a small
percentage (11.90%) of the Irish potato farmers do not have any formal education, suggesting
that farmers in the study area are literate. The mean years of farming experience is 18±8 years,
which implies that on the farmers are experienced in Irish potato farming. The study also
showed that 60.71% of the farmers belong to farmers’ cooperative societies, suggesting that
they enjoy benefits accruable of to farmers who belong to such cooperatives. However, most
of the farmers (69.84%) have no access to credit. Conversely, majority (75.40%) of the farmers
have contacts with extension agents, suggesting that they may have information about
innovations which could improve their efficiency in production. The farmers also have an
average farm size of 2.3 ±1 hectares, an indication that most of the farmers are small-scale
farmers.

Table 1: Socio-economic Characteristics of Irish Potato Farmers

Characteristic Frequency Percentage (%)
Sex
Female 72 28.57
Male 180 71.43
Age (years)
Mean 48
S.D 11.02
Marital Status
Single 42 16.67
Married 186 73.81
Widowed 14 5.56
Widower 6 2.38
Divorce 4 1.59
Household Size
Mean 11
S.D 5.2
Educational Status (years)
No formal education 30 11.90
Mean 9
 S.D 4.8
Farming Experience (years)
Mean 18
S.D 8
Membership of Cooperative
No 99 39.29
Yes 153 60.71
Access to Credit
No 176 69.84
Yes 76 30.16
Contact With Extension Agent
No 62 24.60
Yes 190 75.40
Farm Size (Ha)
Mean 2.32
S.D 0.86
Source: Field Survey, 2018. Sample Size = 252.

3.2 Response of Irish potato Output to Inputs of Irish potato Farmers in the Study Area

The estimated stochastic frontier production function of Irish potato farmers in the study area
showed that the variance parameter sigma-squared (𝜎𝜎2=0.0431) was statistically significant at
1%, with a lambda (λ) value (1.0024) greater than one. This indicates the goodness of fit of the
model. The variance ratio known as gamma (γ) was estimated to be 0.5012, implying that
50.12% of the variation in output among the Irish potato farmers was due to disparities in
technical efficiency. The response of output to inputs is presented in Table 2.
Farm size showed a positive coefficient (0.3833) and has a significant influence on Irish potato
production at 1% level. The result indicates that an increase in the farm size by 1%, holding
other variable constant, will significantly increased the quantity of Irish potato produced by
38.33%. In order to increase agricultural output, the result confirmed the significance of farm
size under subsistence agriculture as observed in the study area. This result also presents similar
finding as that of Dube et al. (2018) who reported that farm size is one of the major factor
affecting potato production. Also, Obare et al. (2010) in a study of small holder farmers found
that land was a limiting resource which affects Irish potato production.
The coefficient (0.0385) for seed was however positive but not statistically significant. The
possible reasons for this could be because of the seed rate and poor quality seeds used by
farmers. Better and improved seed varieties may significantly produce high yields even without
planting many seeds per hole. This result also presents similar finding as that of Iyabo et al.
(2016) who reported that seed was positive and not statistically significant, and suggested the
use of appropriate seed rate to improvement output.

The estimated coefficient (0.1569) for fertilizer was positive and significant at five percent
(5%) level of probability. The positive coefficient implies that a 1% increase in the quantity of
fertilizer applied is expected to significantly increase the output of Irish potato production by
15.69 %. This suggests that increasing the quantity of fertilizer used would contribute to higher
Irish potato yields in the study area. The result is in line with the findings of Dube et al. (2018);
Masuku et al.(2015); that output is dependent on the quantity of fertilizer.

Also, the coefficient (0.1602) obtained for agrochemicals was positive and significant at 1%
level for Irish potato production. This suggests that in order to control the risk posed by some
external elements (like weeds, pest and diseases) and increase output, farmers will have to
efficiently and appropriately apply agrochemicals. This result agrees with Nyagaka et al.
(2010) that farmers who apply the recommended amounts of agrochemicals get higher yields.
Labour showed a negative coefficient (-0.0501), but however significant at 10% level. This
results showed that a 1% increase in the quantity of labour used in Irish potato production,
decreases Irish potato output by 5.01%. This suggests that the more labour is been employed,
Irish potato output will be reduced by 0.0501 which implies that labour had a negative effect
on the output of Irish potato in the study area. The possible reason for this negative relationship
might be because of the heavy reliance on family and “communal” labour for the farming
operations within the study area which they locally refer to as “gayya” where all farmers come
together to farm for each other at different dates from land preparation to harvesting. This
practice made labour readily available to the Irish potato farmers, thus there is tendency of over
utilizing this labour. This result is in line with the findings of Balogun and Akinyemi (2017)
who found that the quantity of labour used in manday has a negative and significant relationship
with output. However, contrary to the findings of Dube et al. (2018) whose result estimated
labour as positive and significant.

Table 2: Maximum likelihood Estimates Stochastic Frontier Production function

 Variables Parameter Coefficient Std. Err. z-value P>|z|

Constant β0 3.9052*** 0.3414 11.44 0.000

Ln(Farm size (X1) β1 0.3833*** 0.0645 5.94 0.000
Ln(Seed (X2) β2 0.0385 ns 0.0402 0.96 0.338
Ln(Fertilizer (X3) β3 0.1569** 0.0747 2.10 0.036
Ln(Agrochemicals (X4) β4 0.1602*** 0.0187 8.54 0.000
Ln(Labour (X5) β5 -0.0501* 0.0275 -1.83 0.068
Variance Parameters
Sigma-Squared(𝜎𝜎2) 0.0431
Lambda (λ) 1.0024
Gamma (γ) 0.5012
Sample size 252
Source: Field Survey, 2018. *** Significant at 1% level, ** significant at 5% level, * significant at 10% level, and ns not significant.

Table 3 shows the production elasticities for the inputs and the returns to scale of Irish potato
farmers. The returns to scale of Irish potato farmers in the study area were 0.6888.

The Returns to Scale (0.6888) is less than one which signifies that Irish potato farmers were
experiencing a decreasing returns to scale (DRTS) in production, an indication that inputs used
were inelastic: a one percent (1%) increase in all the inputs included on the production function
results in less than one percent (1%) increase in output of Irish potato. Which implies that in
the long run as all factor inputs are increased by 1%, output will also increase but less than the
proportionate increase in inputs. This shows that farmers are operating in stage II of the
production region which is an economic relevance stage of production (the rational Stage)
where inputs and production are efficient, and at this stage every farmer thrives to maximize
output as well as minimize cost. Hence, it is advisable that farmers should maintain the level
of input utilization at this stage as well as ensure maximum output from given level of inputs.
The observed decreasing returns to scale among Irish potato farmers for this study was
consistent with study done by Nyagaka et al. (2010) who found that Irish potato farmers to be
experiencing decreasing returns to scale and in the second stage of production.

Table 3: Elasticity of Production and Returns to Scale (RTS) Estimates

Inputs Parameters Elasticity of Production

Farm size (X1) β1 0.3833
Seed (X2) β2 0.0385
 Fertilizer (X3) β3 0.1569
Agrochemicals (X4) β4 0.1602
Labour (X5) β5 -0.0501
RTS 0.6888
Source: Field Survey, 2018.

3.3 Technical Efficiency of Irish potato Farmers in the Study Area

Figure 1 shows the distribution of Irish potato farmers according to their technical efficiency
levels derived from the analysis of the stochastic frontier production function. From the result
of the analysis, the technical efficiency levels revealed that the majority of the farmers
(56.75%) were operating at technical efficiencies between 81-90%. This is followed by 39.68%
at 91-100%; 2.38% at 71-80% and 1.19% at ≤70% technical efficiencies, suggesting that there
was significant variation in technical efficiency among Irish potato farmers in the study area.
The result in figure 1 below further shows that the least efficient farmer and the most efficient
farmer have estimated technical efficiencies values of 65% and 97% respectively, which
implies that none of the farmers have TE level lower than 65%, indicating that farmers are
fairly efficient in production. That is, the farmers are efficient in deriving maximum output
from input, given the available resources.

The result showed a mean technical efficiency of 89% and a standard deviation of 4%. The
distribution is comparable with the results obtained by Dube et al. (2018) on Irish potato
production. This level of mean technical efficiency implies that, on the average, the farmers in
the study area were able to obtain about 89% of the output from a given level of inputs. This
also indicates that Irish potato farmers in the study area are operating 11% below the production
frontier (i.e. 11% efficiency gap from the 100% optimum) at the given level of technology.
Thus, on average the farmers were relatively efficient; however, 11% of the output is lost due
to the technical inefficiency which could be from farming systems or due to the inefficiency
among the sampled farmers, or both (i.e. factors within the control of the farmers). Although,
not a single farmer appears as fully technically efficient (100%), the result further suggests that
on the average, output levels can be increased by 11% without necessarily employing
additional resources. Furthermore, the results also shows that an average farmers in the study
area could reduce their cost and attain the TE level of its most efficient counterpart by 8% [i.e.,
1 - (89/97) x 100] and the least efficient farmer could also reduce cost and attain the TE level
of the most efficient farmer by 32% [i.e., 1 - (65/97) x 100] through adopting the practices and
technology used by the most efficient farmer. The results of this study is comparable to the
results of the studies carried out by Kiptoo et. al. (2016); Nyamasia (2013); Nyagaka et.
al.(2010) on technical efficiency of smallholder Irish potato farmers.

60

50
Irish potato Farmers (%)

40

30
143

20 100

10

0 3 6
60-70 71-80 81-90 91-100
Technical Efficiency (TE) (%)

Figure 1: Distribution of Irish potato Farmers based on their Technical Efficiency

Source: Field Survey, 2018: Values on the bar represent the frequencies; Mean (%) = 89±4%.

3.4 Determinants of Technical Efficiency of Irish potato Farmers in the Study Area

Table 4 shows the estimated factors influencing technical efficiency; their estimated
coefficients and level of significance. From the result obtained, most of the estimated
regression coefficients were found to be positive and statistically significant. The significant
variables confirmed their relative importance in Irish potato production in the study area. The
positive coefficient implies the associated variable increases technical efficiency, meaning it
has a positive effect on technical efficiency; while the variable with negative coefficient leads
to decrease in technical efficiency. The coefficient of multiple determinations (R2) was 0.51
this means that 51% of variation in technical efficiency of the Irish potato farmers was
explained by variations in the explanatory variables while the remaining 49% was attributed to
the un-captured variables in the model. F-Statistics was 9.49 significant at 1% which implies
that the joint effect of the variables included in the model were significant in determining
technical efficiency.
The coefficient of sex was positive (3.3816) and statistically significant at 1%. This implies
that the sex of the farmers have significant effects on technical efficiency. The socioeconomic
results obtained showed that 76.98% of the farmers were male. This suggests that male farmers
were more technically efficient than female farmers; thus, a unit increase in male farmers,
technical efficiency will be increased by 3.3816 magnitudes. This could be explained by the
fact that the male farmers are decision makers, had access to land, labour supply and other
production resources due to cultural prejudice. Also had a responsibility to provide more food
to their family and hence making the male farmers closer to the frontier.
The coefficient of extension visits was positive (0.8941) and significantly influence technical
efficiency at 1% level. This implies that farmers who have contacts with extension officers
would increase their technical efficiency by 89.41%. This revealed that access to extension
services would help farmers to; gain better knowledge on input use, access modern agricultural
technology, obtain information on different proper agronomic practices as it relates to land
preparation, planting, weeding, fertilizers application, pests and diseases control, thus,
improving farmers’ technical efficiency in the study area. Sibiko (2012); Dube et al. (2018)
also found extension visits to positively and significantly influenced technical efficiency of
farmers.

Membership of cooperative also showed a positive (1.6831) and significant influence on

technical efficiency at 1% level. This implies that the farmers who were members of
cooperative are more likely to improve their technical efficiency. This is because farmers who
are members of cooperative tend to benefit more from their association. Such benefits could
include; easy access to relevant information on farm management practices, introduction of
new technologies and financial assistance. Hence, such farmers become more technically
efficient in production. This is in line with the findings of Nyagaka et al. (2009) but contrary
to the findings of Nwaru & Ndukwu (2011).

Farming experience was positive (0.0579) and statistically significant at 5% level. This implies
a one year increase in farming experience on Irish potato production would increase technical
efficiency by 5.79% in the study area; suggesting, the longer the years of farming experience
the better the technical efficiency of the farmer. The result can be attributed to the fact that
mean years of farming experience in the study was 18 years (Table 1); an indication that Irish
potato farmers in the study area have been in production for a long time and have experience.
The result also suggests that farmers who have more years of experience would be better placed
to sound managerial abilities, improved technical skills, wider networking with other farmers
on best agronomic practices and efficient use of inputs; hence, increases their technical
efficiency. This finding is in line with results of Lubis (2014); Otitolaiye et al. (2014); who
found out that more experienced farmer would be more technical efficient.

Household size was negative (-0.1449) and significantly influence technical efficiency at 1%
level. This result implies that an increase in farmers’ household size, technical efficiency
reduces by 14.49% in the study area. This is attributed to the fact that larger household size
might imply more cash constrain as the need to meet the family daily needs increases with large
household size, thus leaving the household with little cash to purchase production inputs and
new technologies. This result is consistent with the finding of Dube et al. (2018) who found
out that larger household size negatively affects technical efficiency in Irish potato production.
Table 4: Estimated factors influencing Technical efficiency of Irish potato Farmers in the
Study Area
Variables Parameter Coefficient Std. Err. t- value P>|t|
Constant α0 4.7353*** 0.5828 8.13 0.000
Sex (Male=1, Female= 0) α1 3.3816*** 0.5276 6.41 0.000
Access to credit (Yes=1, No= 0) α2 0.5346 ns 0.3888 1.37 0.170
Extension visit(number) α3 0.8941*** 0.1121 7.98 0.000
Membership of cooperative α4 1.6831*** 0.4434 3.80 0.000
Farming Experience(Years) α 5 0.0579** 0.0273 2.12 0.035
Household size (number) α6 -0.1449*** 0.0391 -3.70 0.000
R2= 0.51
Adj R2=0.50
F-Stat=42.37***
Sample size= 252
Source: Field Survey, 2018. *** Significant at 1% level, ** significant at 5% level, and ns not significant.

4 Conclusions

This study set out to analyze technical efficiency among Irish potato farmers in Plateau State,
Nigeria. It was concluded that none of the sampled Irish potato farmers operates on the
production frontier (efficient level), indicating there is still a gap in efficiency and room for its
improvement. These farmers were operating below the production frontier due to technical
inefficiency which is attributed to farming systems or due to the inefficiency among the
sampled farmers, or both. The study established that Irish potato farmers operate at the rational
state of production whereas being a male farmer, extension visits, membership of cooperative
society and farming experience increase technical efficiency. It is suggested that the number of
extension visits to the farmers be increased while membership in cooperative societies be
encouraged among Irish-potato farmers in order to attain optimal level of efficiency.

References
Akaate W, 2011. Nigeria and the Challenges of Food Security (2): Nigerian Pilot Newspapers;
Friday August, 19.

Balogun OL & Akinyemi BE, 2017. Land fragmentation effects on technical efficiency of
cassava farmers in South-West geopolitical zone. Cogent Social Sciences, 6: 1–10.
https://doi.org/10.1080/23311886.2017.1387983

Battese GE & Tessema G, 1993. Estimation of stochastic frontier production functions with
time-varying parameters and technical efficiencies using panel data from Indian
villages.” Agricultural Economics 9:313–333.

Battese GE & Corra GS, 1977. Estimation of a Production Frontier Model: With
Application to the Pastoral zone of eastern Australia. Australian Journal of
Agricultural Economics, 21:167-179.

Demo P, Dominguez C, Cumbi S & Walker T, 2005. The potato to sub-sector and strategies
for sustainable seed production in Mozambique. Journal of Development and Agricultural
Economics [http://www.academicjournals.org/JDAE] site visited on 22/7/2012.

Dube AK, Ozkan B, Ayele A, Idahe D & Aliye A, 2018. Technical efficiency and profitability
of potato production by smallholder farmers : The case of Dinsho District , Bale Zone
of Ethiopia. Journal of Development and Agricultural Economics, 10(July), 225–235.
https://doi.org/10.5897/JDAE2017.0890
Ekanayake SAB & Jayasuriya SK, 1987. Measurement of firm-specific technical efficiency: A
comparison of methods. Journal of Agricultural Economics 38(1):115–141.
FAO, 2007. On line statistical data base of the Food and Agricultural Organization the
United Nations. [http:// faostat.fao.org] site visited on 16/05/2012.
FAOSTAT, 2016. Food and Agricultural Organization of the United Nations. FAO Statistical
Database 2015. Retrieved 7/1/2016 from World Wide Web
http://faostat3.fao.org/download/FB/CC/E
FAOSTAT, 2019. Food and Agricultural Organization of the United Nations. FAO Statistical
Database. Retrieval date January 5, 2019 from World Wide Web
http://www.potatopro.com/world/potato-statistics . http://www.fao.org/faostat/en/data
Florence M, John M, George G, John V & Yigzaw N, 2018. Economic efficiency of milk
production among small- scale dairy farmers in Mukurweini , Nyeri County , kenya.
Journal of Development and Agricultural Economics, 10(May), 152–158.
 https://doi.org/10.5897/JDAE2017.0915
Iyabo BA, & Olubunmi LB, 2016. Profitability And Efficiency Of Cucumber Production
Among Smallholder Farmers In Oyo State, Nigeria. Journal of Agricultural Sciences,
61(4): 387–398. https://doi.org/10.2298/JAS1604387A

Izuchukwu O, 2011. Analysis of the Contribution of Agricultural Sector on the Nigerian

Economic Development. World Review of Business Research 1(1): 191-200.

Jwanya BA, Dawang NC, Zarmai DU & Mashat IM, 2014. Economic Analysis
Irrigated Irish Potato production in Plateau State, Nigeria. Savannah Journal of
Agriculture. 3(1):47-52.

Kadiri FA, Eze CC, Orebiyi JS, Lemchi, JI, Ohajianya, DO & Nwaiwu IU, 2014 Technical
Efficiency in Paddy Rice Production in Niger Delta Region of Nigeria, Global Journal
of Agricultural Research (2)2: 33-43
Kiptoo KW, Xia X & Kipkemboi KK, 2016. Technical efficiency of smallholder potato farmers
in Kenya : An analysis of major influencing factors in Koibatek , Baringo County . African
Journal of Agriculture and Environment, 2(1): 8–15.
Liverpool-Tasie LSO, Adjognon SG, & Reardon TA, 2016. Transformation of the food system
in Nigeria and female participation in the Non-Farm Economy (NFE). Selected Paper
prepared for presentation at the 2016 Agricultural & Applied Economics Association
Annual Meeting Boston, Massachusetts, July 31-Agust 2.

Lubis RRB, 2014. Analisis Efisiensi Teknis, Alokatif dan Ekonomi Produksi Nanas Di
Kabupaten Subang, Propinsi Jawa Barat. Unpublish Dissertation. Sekolah Pasca Sarjana.
Bogor: Institut Pertanian Bogor.
Masuku MB, Raufu MO & Malinga NG, 2015. The Impact of Credit on Technical Efficiency
Among Vegetable Farmers in Swaziland. Sustainable Agriculture Research:Published by
Canadian Center of Science and Education, 4(1): 114–126.
https://doi.org/10.5539/sar.v4n1p114

National Bureau of Statistics, 2016. Q4GDP Report http://www.nigerianstat.gov.ng/report/518

National Population Commission, NPC, 2006. National Population Census, Federal Republic
of Nigeria Official Gazette, 94, (4): Lagos, Nigeria.

Nwafor M, 2011. Review of potential crop yields in Nigeria. International Institute of Tropical
 Agriculture. July 29, 2011 (ReSAKSS WA, IITA) Regional Strategic Analysis and
Knowledge Support System.

Nwaru JC & Ndukwu PC, 2011. Estimation of farm level technical efficiency and its
determinants among male and female sweet potato farmers in Imo State, Nigeria.
Ethiopian Journal of Economics, vol. 20, no. 1, : 99-112

Nyagaka DO, Obare GA, Omiti JM & Nguyo W, 2010. Technical efficiency in resource use :
Evidence from smallholder Irish potato farmers in Nyandarua North District, Kenya..
African Journal of Agricultural Research, 5(11): 1179–1186.
https://doi.org/10.5897/AJAR09.296

Nyagaka DO, Obare GA & Nguyo W, 2009. Economic Efficiency of Small-holder

Irish Potato Producers in Kenya: A case of Nyandarua North District. Being a paper
presented at the International Conference of the Economists, Beijing, China, August
16th – 22nd : 2-19.

Obare GA, Nyagaka DO, Nguyo W & Mwakubo SM, 2010. Are Keyan smallholders
Allocatively efficient? Evidence from Irish potato producers in Nyandarua North
District. Journal of Development and Agricultural Economics.2 (3):78 – 85

Ojo FT, 2013. Potato Production in the Tropics. Unpublished M.Sc project. University of
Ibadan, 40- 60pp

Okonkwo JC, Amadi CO & Nwosu KI, 2009. Potato Producation, Storage, Processing and
utilization in Nigeria (2nd ed.). Umudike: NRCRI.

Onumah EE & Acquah HD, 2010. Frontier Analysis of Aquaculture Farms in the Southern
Sector of Ghana. World Applied Sciences Journal, 9(7), 826-835
Otitolaiye JO, Ohajianya DO, Saliu OJ, Ibitoye SJ, Ibekwe UC & Anaeto FC, 2014. Technical
Efficiency of Sweet Potato Farmers in Okene Local Government Area of Kogi State,
Nigeria. Asian Journal of Agricultural Extension, Economics & Sociology, 108-117.
Plateau Agricultural Development Programme PADP, 2000). House Journal, oct.2000

Rahji MAY, 2005. Determinants of Efficiency Differentials in Lowland Rice Production

Systems in Niger State, Nigeria. Ibadan. Journal of Agricultural Research (IJAR).1
(1): 7-17.
Sanusi MM & Babatunde DA, 2017. Analysis of Potato Consumption among Households in
 Odeda Local Government Area , Ogun State , Nigeria, 89–99.
https://doi.org/10.1515/ats

Schulte-Geldermann E, 2013. Tackling low potato yields in Eastern Africa: An overview of

constraints and potential strategies. In Seed potato tuber production and dissemination:
Experiences, challenges and prospects, ed. G. Woldegiorgis, S. Schulz, and B. Berihun,
72– 80. Bahir Dar, Ethiopia: Ethiopian Institution of Agricultural Research, and
Amhara Regional Agricultural Research Institute.

Sher A, Zeeshan M, Gilani S, Mustafa G & Mushtaq K, 2016. Investigation of the Factors
Affecting the Potato Production with Special Reference to Farmers Entrepreneurial
Level in Punjab , 30–37.

Sibiko KW, 2012. Determinants of common bean productivity and efficiency: A case of
smallholder farmers in eastern Uganda. M. Sc. Thesis submitted in Agriculture and applied
economics of Egerton University.
Tadesse B & Krishnamoorthy S, 1997. Technical efficiency in Paddy Farms of Tamil,
Nadu: An analysis based on farm size and Ecological zone. J. Agric. Econ., 16: 185 –
192

Umoh GS, 2006. Resource Use Efficiency in Urban Farming: An Application of Stochastic
Frontier Production Function. International Journal of Agriculture and Biology. Vol. 8
(1) 38- 44.

United Nations UN, 2017. Department of Economic and Social Affairs, Population Division.
World Urbanization prospects: The 2017 Revision.

Wubshet JS, 2018. Technical Efficiency of Potato Production by Smallholder Farmers: The
case of Dinsho District, Bale zone of Oromia Region, Ethiopia. M.Sc Thesis Submitted to
School of Agricultural Economics and Agribusiness, Haramaya University.

Wuyep SZ, Zemba AA & Jahknwa CJ, 2013. Effects of precipitation effectiveness on the yield
of irish potato ( solanum tuberosum ) in jos-plateau , nigeria. International Journal of
Research in Applied, Natural and Social Sciences (IMPACT:, 1(5): 27–32.

Zemba BAA, Wuyep SZ, Adebayo AA, & Jahknwa CJ, 2013. Growth and Yield Response of
Irish Potato (Solanum Tuberosum) to Climate in Jos-South , Plateau State , Nigeria.
Global Journal of human social science Geography, Geo-Sciences, Environmental
Disaster Management, 13(5): 13–18.