Technical efficiency and its determinants in rice production: The case of small-scale rice growers in the Ejisu Juaben Municipality of Ghana

Abstract

This study assessed the technical efficiency of smallholder rice growers in the Ejisu Juaben Municipality of Ghana and explained variations using the Stochastic Frontier Approach. Cross-sectional data were collected from 200 rice farmers using a structured questionnaire. The results showed that inefficiency exists as the mean technical efficiency was 55% implying that nearly half (45%) more output could be produced using the existing input levels if farmers were technically efficient. A scope, therefore, exists for increasing rice production. A wide range (11.7% to 98.4%) of technical production efficiency exists among the sampled rice farmers, showing the various levels of improvements expected to bring various farmers to operate on the frontier. Labour cost was revealed as the main constraint hindering the development of the rice sector. The main factors that positively and significantly explain the level of variation in efficiency production were membership to a Farmer-Based Organization (FBO), access to improved varieties, and access to credit. Furthermore, gender, farmer experience, and contact with extension services negatively influence the efficiency performance of farmers. Encouraging farmers to form FBOs is recommended, as this will make credit more available to farmers and improve access to community-based extension services.