Econometric analysis of technical efficiency of pearl millet farmers in Kano State, Nigeria

Abstract

In Nigeria, particularly the northern parts, pearl millet is a traditional crop that is very important to nation's food security. Empirical evidence indicates that the main problem in pearl millet production in Nigeria is associated with low productivity and inefficiency in allocation of resources. This study therefore sought to analyse the Technical Efficiency (TE) of pearl millet farmers in Kano State of Nigeria, being the state with highest concentration of pearl millet farmers. SFA approach is used on a data collected from 256 randomly sampled pearl millet farmers during 2013/2014 cropping season. The study discovers that all the production inputs/variables included in the Cobb-Douglas Stochastic Frontier function with exception of agrochemicals were positively and significantly associated with TE. The TE range of 21% to 94% and mean TE of 73% were obtained from the analysis. The study also reveals that access to credit, education, extension and household size were the major contributors to TE. This therefore calls for formulation of appropriate policy that would extend these key determinants of TE which would go a long way in improving farmers' efficiency level and economic benefits. This study contributes the first SFA approach in estimating TE of pearl millet farmers in Kano State, Nigeria, which can effectively help in addressing food insecurity problem in the country.