Data evelopment analysis of the technical efficiency of maize-based agroforestry system in Oyo state, Nigeria

Femi Awe, Fatai Abiola Azeez, Lucy Adeteju Orumwense

Abstract: This study applied Data Envelopment Analysis (DEA) model to estimate technical efficiency of maize-based agroforestry farmers using the assumption of variable returns to scale (VRS) and input-orientation. A total of one hundred and fifty copies of questionnaire were randomly administered on the respondents through a multi-stage random sampling technique. Both descriptive and inferential statistics were used to analyze the data. The descriptive statistics used were frequency tables, percentages and mean, while the inferential statistic used was DEA and ordinary Least Square (OLS) Regression. The DEA was used to determine the technical efficiency of the farmers while the OLS was used to ascertain the factors that influenced technical efficiency of the farmers. The result showed the mean technical efficiency to be 69%. This is an indication that maize-based agroforestry farmers were operating at 69% level of technical efficiency. This implies that total inputs could be reduced by 31% while still maintaining existing level of output. The results of the return to scale also revealed that increasing return to scale (IRS) is the dominant form of return to scale, having the highest percentage of 57.33 compared to constant return to scale (CRS) and decreasing return to scale (DRS) which had percentages of 17.33 and 25.33 respectively. In addition, the estimates of the OLS regression show that educational qualification of the farmers, farming experience; age of the farmer and access to extension services had positive and significant relationship with the technical efficiency of the farmers while farm size had negative and significant relationship with their technical efficiency.

Keywords: agroforestry; maize; Oyo State; return to scale; Technical efficiency

Date published: 2021-08-19