ISSN 2167-0447
International Journal of Agricultural Sciences ISSN: 2167-0447 Vol. 15 (5), pp. 001-008, May, 2025. Available online at www.internationalscholarsjournals.org © International Scholars Journals
Full Length Research Paper
Assessment of Technical, Cost and Allocative Efficiency of Crop Enterprises in Southwest, Nigeria
Odewale, Tajudeen Opeyemi, A. B. Sekumade and R. S. Owoeye
Department of Agricultural Economics and Extension Services, Ekiti State University, Ado Ekiti, Nigeria
Received 25 March, 2025; Revised 27 April, 2025; Accepted 28 April, 2025 and Published 07 May, 2025
Abstract
In recent years, agro-preneurship has gained attention as a promising solution for addressing youth unemployment, food security, and sustainable economic development. The study investigated the Efficiency of Crop Based Agro- Enterprises in the Southwest region of Nigeria. The study aims at determining the technical, cost and allocative efficiency f crop-based agro-enterprise in the study area. A multi-stage sampling technique was employed to select participants through the Ministry of Agriculture. Two States; Ekiti and Oyo, were purposively chosen for their similar level of involvement in crop production in the geopolitical zone. The second stage of involved the selection of nine Local Government Areas (LGAs) each from Ekiti and Oyo States, making 18 LGAs. From each of LGAs, three communities were randomly selected, resulting to 54 communities in all. At the community level, 10 respondents were randomly selected, making the total respondents to be 540. Data collected through structured questionnaire were analyzed using stochastic frontier production function. The findings assessed technical efficiency in crop based agro-enterprises, revealing gamma (γ) parameter of the Cobb-Douglas stochastic frontier production function to be 0.686. This value was statistically significant at a 1% level of probability. This suggests that technical inefficiency was highly significant in agro-preneurship activities, indicating variations in the effectiveness of farm operations. Arising from the above, government should consider increasing its allocation for agriculture in each of the states within the Southwest region. This boost in funding will serve as a strong incentive for farmers to engage in large-scale production, ultimately fostering the development of agro-enterprises in the area. It is equally essential for the government to prioritize the development of agro-enterprises by integrating it into the educational curriculum at all levels of the educational sector. This approach will make agro-enterprises more appealing and accessible to the general population. Extension Officers should be more aggressive in fulfill their responsibilities by not only delivering technical assistance to farmers but also by maintaining consistent monitoring efforts. This proactive approach will contribute to enhancing the overall efficiency of farmers.
Keywords: Crop enterprise, technical, cost, allocative efficiency