Analysis of Scale-Efficiency of Rice Production among Beneficiaries of Anchor Borrowers Programme in Adamawa State, Nigeria

Abstract

This study examined the scale efficiency of rice production among beneficiaries of anchor borrowers programme (ABP) in Adamawa State, Nigeria. Multistage random sampling was employed to select respondents for the study. Structured questionnaires were the instruments used for data collection. A sample of 139 farmers was used for the study. Percentages, means, frequency, ranking, and data envelopment analysis were the analytical tools employed. The results of the socioeconomic characteristics of the respondents revealed that the majority (76.3%) of them was headed by males; most (61.1%) were within the ages of 21-40 years. Results from the data envelopment analysis showed that mean scale efficiency observed was 59%, out of the rice farms studied; 78% were scale inefficient as they operated under increased return to scale (IRS) and decreased return to scale (DRS) assumptions and therefore, operated at stage I and stage III of the production process, respectively. The major constraints faced by rice farmers in the study area were identified among others to be prevalence of pests and diseases, bad roads, and high cost of labour. Finally, it was recommended among others that policies geared towards investment in pest and disease control, good access roads to farms and means of transport towards achieving effective productivity and scale efficiency should be formulated.