Publisher: Bachudo Science Co. Ltd

Performance Assessment In Nigeria’S Peasant Agriculture: An Application of Data Envelopment Analysis On Rice Producers In Cross River State, Nigeria

E. O. Edet, N. M. Nkang, M. O. Oniah, X. A. Okon
KEYWORDS: Benchmarking, Efficiency, Best-practice, DEA model, Rice

ABSTRACT:

The paper investigated the performance of swamp rice producers in Cross River State, Nigeria, in terms of their productive efficiency, using the non-parametric data envelopment analysis (DEA) approach to frontier estimation. Results show that the efficiency levels of rice producers in the region are generally above 65%, on average, under the assumption of variable returns to scale (VRS), thus indicating substantial levels of inefficiency. Of the 95 farmers sampled, 14 were fully technically efficient, while 4 each were fully allocatively and economically efficient (in the VRS sense), thus providing a benchmark for which the inefficient producers could emulate. Allocative inefficiency was the major source of overall inefficiency, while the key cause of technical inefficiency was the problem of sub-optimal scale. Among others, the study recommends that the problem of sub-optimal scale could be addressed by increasing farm sizes of the 77 farms operating at sub-optimal scale to an average of about 0.4 hectares, while that of allocative inefficiency could be alleviated by providing rice producers in the region with information on the cost-minimizing input mixes of their best-practice peers to enable them become fully allocatively efficient.



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