Effect of farm size on technical efficiency: a case study of the Moretna-Jirru district in Central Ethiopia

[摘要] English: The main objective of the study is to analyze the effect of farm size on farm efficiency athousehold level in cereal based farming systems and to suggest policy recommendations.The survey was conducted in the Moretna-Jirru district of Ethiopia during the 2000/2001cropping season. The district was selected for this study on the basis of the relativelylonger experience of farmers to use new technology, the number of crop growers and thehigh potential for crop production.As part of the methodology, a structured questionnaire was developed and used duringpersonal interviews with farmers. The collected data was analyzed using statisticalpackage SPSS Version 10.1. The empirical model used for the estimation of technicalefficiency of smallholders in this study was the stochastic production function.The stochastic frontier model results revealed that land area and seed application ratecontributed the most to growth in wheat yield whereas increase in land size andapplication of urea led to statistically significant increases in tef yield.In view of the research objectives the major results/findings of the study were:�?The stochastic frontier model analysis revealed that large farms weretechnically more efficient than small farms regarding both wheat and tefproduction;�?The mean technical efficiency of wheat was calculated to be 0.83 for largefarms and 0.79 for small farms (P= .001). The mean technical efficiency oftef for large and small farms was calculated to be 0.74 and 0.68, respectively(P= .001);�?The average technical efficiencies of wheat and tef were calculated to be80.85 % and 70.72 %, respectively. Under the current technology, farmerscan thus increase the actual output levels of wheat and tef by about 19.1%and 29.3%, respectively, to become 100% efficient. The challenge remainsto decrease technical inefficiency factors and to raise the production leveltowards the frontier production level.According to the model analysis, land size remains a key variable explainingdifferentiation in output, especially in keeping farmers near to or on the productionfrontier. Reduction in farm size and land fragmentation have contributed to technicalinefficiencies.From the disaggregated data by size of holding, the conclusion is that larger size holdingsperform better with regard to technical efficiency, food production and income generationthan smaller size holdings, irrespective of the extension program.The results that emerged from the technical efficiency differentials between small andlarge farm groups in the Moretna-Jirru district of central Ethiopia have policyimplications. A number of policy interventions need to be made by government if smallscalefarmers are to improve technical efficiency. These include, among others, thatpolicies on land size and land distribution must be revisited and that further studies areneeded to determine the minimum farm size to support farm households. Frequentredistribution and allocation of land has resulted in fragmentation, tenure insecurity, andin too small farms to support livelihood. This in turn contributed to decrease in farmproductivity and efficiency.It is important to note that small farms can make a difference in food self-sufficiencyschemes, but they will never be big providers of food and fiber for the fast growingpopulation. Small farm producers will fill niche consumer markets. Providing solutionsfor the root causes of rural poverty and changing the gloomy situation of Ethiopianfarmers requires multiple strategies. Therefore, future work in this area should begin byposing questions differently. For example, What is the best path to sustainableagricultural development? What characteristics must a farm possess for it to besustainable, socially responsible, environmentally sound and economically viable? Whatis the optimal farm size and how could size be measured in the sustainable era? Suchquestions do not have easy answers. They do, however, reveal some of the shortcomingsof this analysis and can guide further work in this area.

[发布机构] University of the Free State