DETERMINANTS OF ALLOCATIVE EFFICIENCY OF NON-CONTRACT COTTON FARMING IN KATSINA STATE, NIGERIA

H D ADAMU, A S.S UMAR, S A YAKUBU

Abstract


This study analyzed the allocative efficiency of non-contract cotton production in Katsina State. Multi-stage sampling technique was used to select 184 non-contract cotton farmers. Primary data used for the study was collected with the aid of structure questionnaire. Descriptive statistics and stochastic frontier analysis was used to analyze the data collected. The result revealed a mean allocative efficiency of 0.45, with minimum and maximum of 0.13 and 0.66 respectively, implying that cotton farmers in the study area were allocatively inefficient in their production systems.The maximum likelihood estimates of the stochastic cost frontier function revealed that the coefficients of seeds, hired labour, agro-chemicals and inorganic fertilizer were   positive and statistically significant at varying levels. This indicates that a 1% increase in the quantity of these inputs would increase output by the corresponding value of the coefficients. The inefficiency model revealed that age, household size, educational level, membership of cooperative society and crop diversification were found to increase allocative efficiency of the farmers. The study therefore recommends that cotton farmers should form strong cotton producers cooperative association and government should establish effective marketing and price control boards as well as extension services to cotton farmers to further improve their level of efficiency.               


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References


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