@article{3086,
author = "Tsegaye Melese and Mebratu Alemu and Amsalu Mitiku",
abstract = "Rice  is  one  of  the  major  staple  cereal  crops  in  Ethiopia.  High  productivity  and  efficacy  in  its production  is  vital  to  improve  food  security,  reduce  the  level  of  poverty  and  to maintain agricultural  growth. Thus, the aim of this study was to measure the level of economic efficiency and to identify factors affecting the economic efficiency level in Gurafera woreda. Two-stage random sampling technique was used to select 148 household heads and interviewed using a structured questionnaire during 2017/18 production year. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate the efficiencies level, whereas Tobit model is used to identify determinants that affect efficiency levels of the sample farmers. As a result, the mean technical and allocative efficiencies were 78.5 and 80.56%, respectively. While the mean economic efficiency was 63.18%. The average technical and allocative efficiencies implies that there exists a possibility to increase rice production by 21.5% without using extra inputs and decrease cost of inputs by 19.44%, respectively. The Cobb-Douglas production function result indicated that, rice output was positively and significantly influenced by land, labor. Seed, oxen, herbicide and DAP. Likewise, a two-limit Tobit model revealed that economic efficiency was positively and significantly affected by education, frequency of extension contact and cooperatives membership and variables like, proximity to market and non-farm income affected it negatively. The results showed that there is an opportunity to increase the efficiency of rice production in the study area. Finally, policies target to motivate and invest in the provision of basic education, strengthen the existing agricultural extension system, organize non-member farmers in cooperative association and development of market and road infrastructures needs to improve economic efficiency of smallholder rice producers.",
issn = "23191473",
journal = "IJAIR",
keywords = "Cobb-Douglas;Economic-Efficiency;Ethiopia;Smallholder;Stochastic Frontier;Tobit",
month = "September",
number = "2",
pages = "151-167",
title = "{E}conomic {E}fficiency of {S}mallholder {F}armers in {R}ice {P}roduction: {T}he {C}ase of {G}uraferda {W}oreda, {S}outhern {N}ations {N}ationalities {P}eople’s {R}egion, {E}thiop",
volume = "8",
year = "2019",
}