Abstract:
This study estimates the technical, allocative and cost efficiency of farm households using stochastic
distance and stochastic production frontiers. Further, the study examines determinants of efficiency. Data was
collected from a random sample of 240 maize farmers in Benue State Nigeria using structured questionnaires.
Results from both distance and production frontiers show that farmers in the area are inefficient. Although the
efficiency measures from the two frontiers are quantitatively different from each another, the overall consistency
check shows that the farm households were ranked similarly by both approaches. This is particularly robust to
allocative and cost efficiency. Improved maize seed, inorganic fertilizers, conservation practices, size of farm
holdings, education, and access to extension services, credit and market were found to have significant impact on
efficiency. Thus, investment in agricultural research coupled with complementary policies is an effective instrument
for revamping agriculture and poverty reduction in Nigeria.
