Effect of farm size on technical efficiency: a case study of the Moretna-Jirru district in Central Ethiopia
| dc.contributor.advisor | Viljoen, M. F. | |
| dc.contributor.advisor | Ayele, Gezahegn | |
| dc.contributor.author | Bekele, Abate | |
| dc.date.accessioned | 2017-03-24T07:24:05Z | |
| dc.date.available | 2017-03-24T07:24:05Z | |
| dc.date.issued | 2003-05 | |
| dc.description.abstract | English: The main objective of the study is to analyze the effect of farm size on farm efficiency at household level in cereal based farming systems and to suggest policy recommendations. The survey was conducted in the Moretna-Jirru district of Ethiopia during the 2000/2001 cropping season. The district was selected for this study on the basis of the relatively longer experience of farmers to use new technology, the number of crop growers and the high potential for crop production. As part of the methodology, a structured questionnaire was developed and used during personal interviews with farmers. The collected data was analyzed using statistical package SPSS Version 10.1. The empirical model used for the estimation of technical efficiency of smallholders in this study was the stochastic production function. The stochastic frontier model results revealed that land area and seed application rate contributed the most to growth in wheat yield whereas increase in land size and application 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 were technically more efficient than small farms regarding both wheat and tef production; • The mean technical efficiency of wheat was calculated to be 0.83 for large farms and 0.79 for small farms (P= .001). The mean technical efficiency of tef 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 be 80.85 % and 70.72 %, respectively. Under the current technology, farmers can thus increase the actual output levels of wheat and tef by about 19.1% and 29.3%, respectively, to become 100% efficient. The challenge remains to decrease technical inefficiency factors and to raise the production level towards the frontier production level. According to the model analysis, land size remains a key variable explaining differentiation in output, especially in keeping farmers near to or on the production frontier. Reduction in farm size and land fragmentation have contributed to technical inefficiencies. From the disaggregated data by size of holding, the conclusion is that larger size holdings perform better with regard to technical efficiency, food production and income generation than smaller size holdings, irrespective of the extension program. The results that emerged from the technical efficiency differentials between small and large farm groups in the Moretna-Jirru district of central Ethiopia have policy implications. A number of policy interventions need to be made by government if smallscale farmers are to improve technical efficiency. These include, among others, that policies on land size and land distribution must be revisited and that further studies are needed to determine the minimum farm size to support farm households. Frequent redistribution and allocation of land has resulted in fragmentation, tenure insecurity, and in too small farms to support livelihood. This in turn contributed to decrease in farm productivity and efficiency. It is important to note that small farms can make a difference in food self-sufficiency schemes, but they will never be big providers of food and fiber for the fast growing population. Small farm producers will fill niche consumer markets. Providing solutions for the root causes of rural poverty and changing the gloomy situation of Ethiopian farmers requires multiple strategies. Therefore, future work in this area should begin by posing questions differently. For example, What is the best path to sustainable agricultural development? What characteristics must a farm possess for it to be sustainable, socially responsible, environmentally sound and economically viable? What is the optimal farm size and how could size be measured in the sustainable era? Such questions do not have easy answers. They do, however, reveal some of the shortcomings of this analysis and can guide further work in this area. | en_ZA |
| dc.description.abstract | Afrikaans: Die hoofdoel van die studie is om die uitwerking van plaasgrootte op doeltreffendheid op die huishoudingvlak in graangebaseerde boerderystelsels te ontleed en om beleidsvoorstelle te maak. Die opname is gedurende die 2000/2001 oesjaar in die Moretna-Jirru distrik van Etiopië gedoen. Dié distrik is vir hierdie studie gekies omdat die boere hier relatief meer ervaring het van die aanwending van nuwe tegnologie, weens die aantal gewasboere en die hoë potensiaal van gewasproduksie in hierdie gebied. As deel van die metodologie is 'n gestruktureerde vraelys ontwikkel en gedurende persoonlike onderhoude met boere voltooi. Die versamelde data is deur middel van die statistiese pakket, SPSS Version 10.1, ontleed. Die empiriese model wat vir die beraming van tegniese doeltreffendheid van kleinboere gebruik is, is die stogastiese produksiefunksie . Die resultate van die stogastiese front model het bevind dat die grootte van die grond en die hoeveelheid saad wat gesaai word, die grootste bydrae gemaak het tot 'n toename in die koringoes, terwyl 'n toename in die hoeveelheid grond en die aanwending van ureum tot statisties beduidende toenames in tefopbrengste gelei het. In die lig van die navorsingsdoelstellings was die belangrikste gevolge/bevindinge van die studie die volgende: • Die analise met die stogastiese front model het getoon dat groot plase tegnies meer doeltreffend was as klein plase met betrekking tot sowel koring- as tefproduksie; • Die gemiddelde tegniese doeltreffendheid van koring is bereken op 0.83 vir groot plase en 0.79 vir klein plase (P=.001). Die gemiddelde tegniese doeltreffendheid van tef vir groot en klein plase was bereken op 0.74 en 0.68 onderskeidelik (P=.OOl); • Die gemiddelde tegniese doeltreffendheid van koring en tef is op 80.85 % en 70.72 % onderskeidelik bereken. Met huidige tegnologie kan boere dus die ware uitsetvlak van koring en tef onderskeidelik met ongeveer 19. 1% en 29.3 % ondeskeidelik verhoog ten einde 100% doeltreffend te wees. Die uitdaging is om faktore wat tegniese ondoeltreffendheid veroorsaak, te verminder en die produksievlak tot die front produksievlak te verhoog. Volgens die modelanalise, is die grootte van grond steeds 'n sleutelveranderlike om die variasie in uitset te verduidelik, veralom boere na of op die produksiefront te hou. Vermindering van die grootte van grond en die fragmentering van plase het bygedra tot tegniese ondoeltreffendhede. Uit die data, ingedeel volgens grootte van plaas, word die gevolgtrekking gemaak dat groter plase beter presteer met betrekking tot tegniese doeltreffendheid, voedselproduksie en skepping van inkomste as kleiner plase, ongeag die voorligtingsprogram. Die gevolge wat uit die tegniese doeltreffendheidsdifferensiale tussen groepe klein en groot plase in die Moretna-Jirru distrik van sentraal-Etiopië bereik is, het beleidsimplikasies. 'n Aantal beleidsingrypings deur die regering is nodig indien kleinskaalse boere hulle tegniese doeltreffendheid moet verhoog. Dit sluit onder meer in dat beleid oor plaasgrootte en grondverspreiding hersien moet word en dat verdere navorsing onderneem moet word oor die minimum plaasgrootte wat 'n plaasgesin kan onderhou. Gereelde herverspreiding en toewysing van grond het tot fragmentering, onsekerheid oor eiendomsreg en plase wat te klein is om lewensbestaan te onderhou, gelei. Dit het, op hulle beurt, gelei tot 'n afname in plaasproduktiwiteit en -doeltreffendheid. Dit is belangrik om te noem dat klein plase wel 'n verskil kan maak in skemas vir voedselselfonderhoud, maar dat hulle nooit groot verskaffers van voedsel en vesel vir die vinnig groeiende bevolking sal wees nie. Kleinboere kan vir nis-verbruikersmarkte produseer. Veelvuldige strategieë is nodig om die oorsake van landelike armoede te voorsien en om die droewige situasie van Etiopiese boere te verander. Daarom behoort verdere werk in hierdie veld begin te word deur vrae op ander maniere te stel. Byvoorbeeld, Wat is die beste plan vir volhoubare landbou-ontwikkeling? Watter eienskappe moet 'n plaas hê om volhoubaar, sosiaal verantwoordelik en ekonomies lewensvatbaar te wees? Wat is die optimum grootte en hoe moet grootte in die volhoubare era gemeet word? Sulke vrae het nie maklike antwoorde nie. Hulle identifiseer egter van die tekortkominge van hierdie analise en kan verdere werk in hierdie veld rig. | af |
| dc.description.sponsorship | World Bank | en_ZA |
| dc.identifier.uri | http://hdl.handle.net/11660/5987 | |
| dc.language.iso | en | en_ZA |
| dc.publisher | University of the Free State | en_ZA |
| dc.rights.holder | University of the Free State | en_ZA |
| dc.subject | Farms, Size of -- Ethiopia | en_ZA |
| dc.subject | Farm management -- Ethiopia | en_ZA |
| dc.subject | Agriculture -- Economic aspects -- Ethiopia | en_ZA |
| dc.subject | Agricultural machinery | en_ZA |
| dc.subject | Thesis (Ph.D. (Agricultural Economics))--University of the Free State, 2003 | en_ZA |
| dc.title | Effect of farm size on technical efficiency: a case study of the Moretna-Jirru district in Central Ethiopia | en_ZA |
| dc.type | Thesis | en_ZA |