Comparative Analysis Of Resource Use Efficiency In Rice Production Among Fadama Iii And Non-Fadama Iii Beneficiary Rice Farmers In Niger State, Nigeria

ABSTRACT

This study investigated resource use efficiency of Fadama III and non-Fadama III beneficiary

rice farmers in Niger State, Nigeria. Primary data were collected using questionnaire/interview

schedule administered to a sample of one hundred and twenty rice farmers, selected using multistage

sampling technique. Data were analyzed using descriptive statistics, stochastic frontier

production function, return to scale analysis, gross margin analysis, net farm income analysis and

likert scale rating technique. Maximum likelihood estimates of the Cobb-Douglas frontier

function showed that coefficient of seeds (0.479), labour ( 0.445) and herbicides ( 0.093) had

significant effects on output of Fadama III beneficiary rice farmers while fertilizer ( 0.069) is the

input with significant effect on output of the non-beneficiary farmers. The estimated coefficients

of the inefficiency model revealed that age, household size, educational level, extension contact

and Fadama advisory services positively affected Fadama III rice farmers’ technical efficiency,

but only age and educational level were significant. On the other hand, age, household size and

extension contact positively affected non-Fadama III rice farmers’ technical efficiency, but only

extension contact was significant. An increasing return to scale of 1.432 and 1.168 were recorded

for the Fadama III and non-Fadama III rice farmers, respectively. The technical efficiencies of

the Fadama III rice farmers ranged from 0.411 – 1 with a mean value of 0.79 while that of the

non Fadama III beneficiary rice farmers ranged from 0.435 – 0.989 with a mean value of 0.81 on

the scale of 1.This showed that technical efficiency can be increased by 21 and 19 percents to

attain optimal level in the Fadama III and non Fadama III beneficiary rice farmers, respectively.

Allocative efficiency analysis showed that all resource inputs were underutilized. Fadama III rice

farmers made a gross margin of N69, 288.37, a net farm income of N67, 599.91 and a return on

Naira Invested of 1.81 per ha while the non-Fadama III rice farmers made a gross margin of

N30, 250.36, a net farm income of N28, 550.26 and a return on Naira invested of 1.12 per ha.

The student t-test showed that there was no significant difference between the technical

efficiencies of Fadama III and non-Fadama III beneficiary rice farmers. However, the t-test

showed a significant difference between the profit of the Fadama III and non-Fadama III rice

farmers. The study recommended that project implementers should tackle the challenge of elite

capture, inputs diversion and intensify advisory services/training, while policy makers facilitate the usage of high yielding seeds, labour saving technology and agro-chemicals for rice farmers.