dc.description.abstract |
This study aimed to estimate Technical, Allocative and Economic efficiency level of farmers in
Sorghum production and to identify factors that affect Technical, Allocative and Economic
efficiency levels of sorghum producers using cross sectional data collected from 223 sample
households based on multistage sampling technique in 2018/19 production season. The study
used Cobb-Douglas production function form with stochastic frontier model. Whereas, Tobit
model was also used to identify factors affecting Technical efficiency, Allocative efficiency and
Economic efficiency level of sorghum producers. The maximum likelihood estimates of the
stochastic production frontier model indicated that land; oxen, labor and NPS fertilizer inputs
allocated for Sorghum production significantly determined Sorghum output. The estimated mean
value of Technical efficiency, Allocative efficiency and Economic efficiency showed that there is
a potential for increasing output of Sorghum by 31.8%, decreasing cost of production inputs by
14.8% and the overall cost of Sorghum production may decrease by 42.2 percent respectively
given the existing technological level in the study area. The result of the Tobit model indicated
that education of the household head, livestock holding, total farm size the household cultivated,
level of sorghum commercialization and extension access positively and significantly affected
Technical efficiency. But, land fragmentation measured in terms of number of parcels affected
Technical efficiency negatively and significantly. Farm size and extension access affected
Allocative efficiency positively and significantly but, education and land fragmentation were
affected Allocative efficiency negatively and significantly. Education, livestock, total farm size,
commercialization index, credit access and extension access affected EE positively and
significantly while, land fragmentation affected Economic efficiency negatively and significantly.
This indicated that there is a room to increase Sorghum output in the study area. Therefore, the
policies and strategies of the government and other concerned bodies should take into
consideration about the above mentioned factors to improve Sorghum production in the study
area. |
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