Analysis of Resource-use efficiency in Beniseed Production in Obi and Doma Local Government Areas of Nassarawa State, Nigeria

Abstract

Beniseed has been recognized as a crop with high economic potential in Nigeria, both as source of raw materials for industries and reliable foreign exchange earner. The study assessed resource-use efficiency in beniseed production in Obi and Doma Local Government Areas of Nassarawa state during 2004/2005 farming season. Data were collected through multi-stage sampling procedure from 200 respondents. Data were analyzed using descriptive statistics and stochastic production frontier analysis. The technical efficiency index estimated for beniseed farmers was 0.59 which indicated inefficiency in current production practices. The efficiency indices for allocative and overall economic efficiencies were estimated to be 0.41 and 0.24 respectively. The findings showed that farm size, tractor service and hired labour significantly influenced technical efficiency (p< 0.01). The socio-economic factors associated with higher technical efficiency of the farmers included age, access to credit and fertilizer use (p< 0.10); frequency of extension visit (p< 0.10) significantly influenced allocative efficiency while overall economic efficiency was significantly (p< 0.01) influenced by use of fertilizer, selling price and access to credit (p< 0.10). The study concluded that high level of inefficiency exists under the present production practices and therefore recommends that resources such as fertilizer, tractor services and that credit should be made available to farmers for improved beniseed production.