Analysis of Factors Affecting the Efficiency of Smallholder Wheat Production in Lemo District, Hadiya Zone, SNNPR, Ethiopia

Ethiopian agriculture is known for low productivity. Productivity could be enhanced by perfecting the state of technology or enhancing the efficiency of producers and helping to ensure food security within the currently available technology. The study aimed to measure the level of efficiency of wheat production and to identify factors affecting efficiency in the study area. A multistage and purposive sampling technique was employed to select 366 wheat-growing smallholder farmers. Descriptive and inferential statistics, Tobit, and stochastic production functions were employed.

Efficiency Ethiopian Lemo district Stochastic frontier Wheat production

This study examined the factors influencing the efficiency of smallholder wheat production in Lemo District using data from 366 farmers during the 2021 production year. A stochastic frontier model with inefficiency effects was employed to measure technical, allocative, and economic efficiency at the plot level. A Tobit regression model was used to identify socio-economic factors affecting these efficiencies.

[1] Aigner, D., Lovell, C. A. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1), 21–37.

[2] Al-feel, M. A., & Al-basheer, A. A. R. (2012). Economic efficiency of wheat production in Gezira scheme, Sudan. Journal of the Saudi Society of Agricultural Sciences, 11(1), 1–5.

[3] Almanidis, P., & Sickles, R. C. (2011). The Skewness Issue in Stochastic Frontiers Models. Exploring Research Frontiers in Contemporary Statistics and Econometrics.

[4] Asfaw, M., Geta, E., & Mitiku, F. (2019). Economic Efficiency of Smallholder Farmers in Wheat Production.

[5] Asmare, E., & Begashaw, A. (2018). Review on Parametric and Nonparametric Methods of Efficiency Analysis.

[6] CSA. (2007). Population and Housing Census Report.

[7] Farrell, M. J. (1957). The Measurement of Productive Efficiency.

[8] Geta, E., Bogale, A., Kassa, B., & Elias, E. (2013). Productivity and Efficiency Analysis of Smallholder Maize Producers.

[9] Getachew et al. (2018). Economic efficiency of smallholder farmers in barley production.

[10] Gujarati. (2003). Basic Econometrics.

[11] Hunde, K., & Abera, N. (2019). Technical Efficiency of Smallholder Farmers Wheat Production.

[12] Kifle Degefa et al. (2017). Economic Efficiency of Smallholder Farmers in Maize Production.

[13] Maddala. (1999). Limited dependent variables in econometrics.

[14] Mburu et al. (2014). Analysis of Economic Efficiency and Farm Size.

[15] Musa et al. (2015). Measuring efficiency of maize production.

[16] Phimister et al. (2016). Efficiency Effects of Access to Information.

[17] Schmidt, P., & Sickles, R. C. (1984). Production frontiers and panel data.

[18] Storck et al. (1991). Farming Systems and Farm Management Practices.

[19] Tesema et al. (2019a). Economic Efficiency of Smallholder Farmers.

[20] Tesema et al. (2019b). Economic efficiency in maize production.

[21] Wana, H., & Sori, O. (2020). Factors Affecting Productivity of Wheat Production.

[22] Wudineh, G. T., & Endrias, G. (2016). Technical efficiency of wheat farmers.

[23] Yamane, T. (1967). Statistics: An introductory analysis.

[24] Zamanian, G. R., Shahabinejad, V., & Yaghoubi, M. (2013). Application of DEA and SFA.