Technical efficiency and profitability of potato production by smallholder farmers: The case of Dinsho District, Bale Zone of Ethiopia

Abstract

. Cross sectional data collected in 2015/16 production year from 147 surveyed households was utilized in achieving these objectives. Non-parametric net crop revenue analysis and Cobb-Douglas stochastic frontier approach were used to analyze enterprise profitability and to estimate the technical efficiency levels in potato production, respectively. The result of net crop revenue analysis indicated that potato production was profitable wherein the producers had earned net return of about 11,740.9 ETB (Ethiopian Birr). Further analysis of the gross and net income data showed wide variation of the results between harvesting seasons and off-peak season. The test result of Cobb-Douglas stochastic frontier indicated that the relative deviation from the frontier due to inefficiency was 94%. The mean technical efficiency of farmers in the production of potato was 0.89. The estimated stochastic production frontier model indicated that area of the plots, amounts of NPS fertilizers, amount of seed and labor in man-days were positive and significant determinants of production level. The estimated SPF model together with the inefficiency parameters showed that age, age square, education, land ownership status, extension contact, number of plots (fragmentation), household size and livestock significantly determined efficiency level of farmers in potato production in the study area. To this end, the attention of policy makers to improve agricultural production should not revolve solely around the introduction and dissemination of new technology to increase yield, but also more attention should be given to improve the existing level of efficiency.

Technical Efficiency and Profitability among Maize Based Farmer in Kajola Local Government of Oyo State

“…This implies that majority of the respondents are in their active age. This finding is similar to that of Adio and Oladele, (2021) who reported in a study on food security and its determinant on farming household in Surulere Local Government of Oyo State that the mean age of the respondents was 50.91 yearsand Ahmed et al, (2018), in which he observed that youth constitute the majority of the maize farmers. The result of the gender structure of the respondents in Table 1 revealed that the maize farmers were dominated by males, accounting for 80 percent while female accounted for 20 percent.…”

Plant Performance and Added Value of Soybean Farming by Tillage and Plant Spacing

“…The financial feasibility was assessed from the Revenue Cost Ratio (RCR), Benefit Cost Ratio (BCR), and Marginal Benefit Cost Ratio (MBCR). The financial feasibility analysis was done by adopting several previous studies, including [11], [12], [13] and [14] with the following formula: Marginal Benefit Cost Ratio (MBCR) is useful to determine whether a new technology used by farmers can bring added value. MBCR value > 1 means that the introduced technology has the potential to be developed because it is economically feasibility.…”

Factors affecting the performance of Tshiombo Irrigation Scheme in Limpopo Province, South Africa

“…In addition to this, elderly people in TIS who reach the age of 60 and above gain access to income in the form of social grants, hence they enjoy minimum incentives to engage in irrigation farming. Ageing has a diminishing effect on the performance of irrigation schemes and food security (Dube, 2018). Ageing affects the technical efficiency of the agricultural systems as older farmers are unwilling to change their practices and slow to adopt new technologies (Senyolo et al, 2018).…”