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 multi-stage 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.
