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Estimating Technical Efficiencies and Productivity Gaps among smallholder farmers in and around FADAMA farming communities of South-Western Nigeria

. Luke Olarinde, Laudia Ogunniyi, Gbenga Fanifosi, Matthew Adio and Emmanuel Akanbi Department of Agricultural Economics, Ladoke Akintola University of Technology, PMB 4000 Ogbomoso, 214210 Oyo State, Nigeria.


Abstract

This paper compares technical efficiencies (TEs) and productivity gaps for farms in Ogun and Oyo States in Southwest Nigeria, accounting for differences in FADAMA and non-FADAMA farming communities. Technical efficiency was estimated using the non-parametric mathematical programming (Data Envelopment Analysis-DEA) approach to the frontier estimation. The productivity/TEs gaps were estimated from the maximum attained and average TEs. The overall predicted average TE of respondents is 37.89%. The estimated productivity gaps for farms in the FADAMA (FFV) and non-FADAMA (FNFVs) villages are 58.63% and 63.17% respectively. The gaps are wider for the FNFV than for the FFV. There are differences between the overall sample and each of the samples of Ogun and Oyo States in terms of the determinants of the TE scores. However, important determinants of TEs are: extension contact, distances to the markets, the use of ICT assets, especially mobile telephone, radio and television, which are crucial to getting information on general agricultural production (including pre and post harvest) and market for inputs and outputs. These are critical policy indicative variables which need urgent attention. Also, encouraging younger folks to adopt more of the FADAMA crop practices (which prove to enhance productivity) is also important.

Keywords: DEA, Extension, FADAMA, Productivity, South-western Nigeria

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