Determinants of Technical Efficiency Among Smallholder Soybean Farmers in Benue State: A Stochastic Frontier Analysis

📖 ABSTRACT/OVERVIEW

Technical efficiency measurement provides a rigorous empirical framework for understanding the gap between actual farm output and the maximum output achievable given existing inputs and technology, with critical implications for agricultural policy design. In Benue State, in Nigeria's North Central geopolitical zone, soybean is a commercially significant legume supporting both household nutrition and agro-industrial supply chains, yet efficiency levels and their determinants have not been adequately modelled. This study employs stochastic frontier analysis to estimate technical efficiency and identify its determinants among smallholder soybean farmers in Benue State. A cross-sectional survey collected input-output data from 250 soybean farmers using multi-stage random sampling across three agricultural zones. A translog production function was specified within a stochastic frontier framework, and technical efficiency scores were regressed on socioeconomic and institutional variables using the single-stage maximum likelihood approach. Mean technical efficiency was estimated at 0.68, indicating a 32 percent gap from the production frontier. Farmers operating at the frontier were characterised by greater extension contact frequency, higher levels of formal education, and membership in functional cooperative societies. Fertiliser and herbicide use were the most significant positive production determinants. Farm size was negatively associated with efficiency, consistent with the inverse farm size-productivity hypothesis. The study concludes that bridging the efficiency gap requires simultaneously improving extension service delivery and input access, particularly for smaller and less-educated farm operators in Benue State. Policy recommendations are directed at the Agricultural Development Programme and federal input subsidy scheme administrators. Keywords: technical efficiency, soybean, stochastic frontier, Benue State, farm management

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Departments# Farm Management