Analysis of the determinants of profit efficiencyof small-scale maize farmers in selected Local Government Areas of Osun State, Nigeria.

Abstract

The study was carried on the analysis of the determinants of profit efficiency of small-scale maize farmers in some selected LGAs of Osun State. Primary data were used to elicit information from proportionately selected 220 farmers using well-structured interview schedules and questionnaire. Descriptive statistics and stochastic profit frontier were used to analyze the objectives of this study. The findings revealed that maize arming was dominated by male gender with mean age of 48 years. Most of them had cognate experience of about 19 years and married with a mean household size of 6. They had moderate literacy level but very low extension contact. The maize farmers earned about ₦29,057.63/month and so engaged in various off-farm income to augment the household income. The mean profit efficiency of 0.76 while 34% and 4% of the farmers belonged to the highest (0.81-0.90) and lowest (0.31-0.40) efficiency class index, respectively. The maximum likelihood estimates of the parameters of profit stochastic frontier model revealed that labour wage rate, cost of other farm inputs, prices of planting material, fertilizer, agrochemicals and farm were the main determinants of profit efficiency of the farmers. Profit inefficiency however increased with increase in age and off farm employment. The main constraints facing the farmers included inadequate extension and farm advisory services and, poor road access and transport facilities.