Analysis of Economic Efficiency and its Determinants in Millet Based Production Systems in the Derived Savanna Zone of Nigeria

Abstract

intercropping with other crops. The study seeks to analyse the efficiencies ofmillet-based production pattern and its determining factors in the derivedsavanna zone of Nigeria. Data were collected from primary sources using astructured questionnaire administered to the selected 196 millet-basedfarmers. Input oriented Data Envelope Analysis (DEA) and Tobit regressionmodel were used to achieve the aims of the research. The mean TechnicalEfficiency (TE) of the millet and sorghum (MS), millet-sorghum-groundnutand cowpea (MSGC), millet-sorghum and groundnut (MSG), millet-sorghumand cowpea (MSC) and sole millet (SM) were 40, 21, 38, 32 and 48 %respectively. This suggests that in the short run, there are gaps of 60, 79, 62,68 and 52 % to increase the efficiency levels respectively. This may bethrough enhanced use of accessible production inputs. The mean AllocativeEfficiency (AE) for the millet-based farmers was 0.56, 0.55, 0.67, 0.56 and0.91 for MS, MSGC, MSG, MSC and SM respectively. The results revealedthat estimates of factors that influence millet-based farmers’ systems havedifferent degrees of statistical significance and where the level ofsignificance is the same, the magnitude and direction were not the same. The numbers of millet-based farms operating under constant, increasing, anddecreasing returns to scale were also estimated. The result of sensitivityanalysis for an optimum plan for millet-based inputs used showed that land,seed, labour, fertilizer and agrochemicals are not limiting resources toobtain optimal farm plan. These results indicate the units needed to bedecreased from various millet farms respectively for optimal production.More youths should be encouraged by the government and privateorganizations by providing them with necessary incentives to engage infarming to minimize inefficiency associated with older aged farmers.