Analysis of efficiency differentials in Faduma iii programme areas in Kogi state, central Nigeria

Introduction: The impact of the Fadama III programme on the efficiency levels of farmers in Kogi state, Nigeria was investigated. Materials and methods: Primary data were obtained with a questionnaire which was administered to 382 respondents selected through a stratified random sampling procedure. The Cobb-Douglas stochastic frontier production and cost functions were employed in the analyses. The resulting efficiency estimates for beneficiaries and non-beneficiaries were compared using the t-test. Major findings: Efficiency analyses indicate that the quantities of Seed, fertilizer and agrochemicals used were the drivers of technical efficiency among both categories of farmers, while costs of land, fertilizer and family labour were the drivers of allocative efficiency. Technical efficiency estimates for both categories of farmers were 0.79 and 0.71 respectively and respective allocative efficiency estimates were 1.22 and 1.44. Mean comparison of the technical efficiency levels indicated a t-estimate of 2.52 (α = 0.0124) in favour of the beneficiaries while a t-estimate of –24.56 (α = 0.000) indicated that beneficiaries were also more allocatively efficient. Conclusion: The beneficiaries, by acquiring skills and support from Fadama III, were more efficient than their non-benefiting counterparts. Continuous training will assist farmers to improve their efficiency and reduce the noticed deficits.