African Journal of Agricultural Economics and Rural Development

African Journal of Agricultural Economics and Rural Development ISSN: 2375-0693 Vol. 3 (6), pp. 237-245, July, 2015. © International Scholars Journals

Full Length Research Paper

A survey on Technical, allocative, and economic efficiency of maize production using the Parametric  stochastic frontier production function

Saulos Jack Chakwera

Department of Agricultural Economics and Agribusiness, University of Malawi, Zomba, Malawi.

Email: [email protected]

Accepted 16 June, 2015

Abstract 

Maize is one of the major five staple cereal crops in Ethiopia. High productivity and efficacy in its production is critical to improve food security, reduce the level of poverty and achieve or maintain agricultural growth. A multi-stage sampling technique was used to select 385 household heads and interviewed using a structured questionnaire during 2013/2014 production year. The study estimates, technical, allocative and economic efficiency using a parametric stochastic frontier production function (Cobb-Douglas). Inefficiency effects are modeled in a second stage applying a two-limit Tobit regression model. The results show that the mean technical, allocative and economic efficiency score was found to be 62.3, 57.1 and 39%, respectively, indicating a substantial level of inefficiency in maize production. The result depicted that important factors that affected technical, allocative and economic efficiency are a number of family size, level of education, extension service, cooperative membership, farm size, livestock holding and use of mobile. Based on the findings the following recommendations are forwarded. The government should motivate and mobilize the youth in agricultural activities, invest in the provision of basic education and facilitate the necessary materials, strengthen the existing agricultural extension system, organize non-member farmers in cooperative association and due attention should be given to enhance the efficiency of farmers with large land holding size. Further, government and stakeholders should promote the expansion of mobile networking in the study area.

Key words: Efficiencies, parametric stochastic approach, two-limit Tobit model, Ethiopia.

African Journal of Agricultural Economics and Rural Development ISSN: 2375-0693 Vol. 3 (5), pp. 226-236, June, 2015. © International Scholars Journals

Full Length Research Paper

Impact of climate change on agriculture in Mexico using a Ricardian model with panel data

*Leonor Pablo Varela, Arturo C. S. and Cristian K. Sanz

Department of Agricultural Economics, Faculty of Agriculture, San Sebastián University, P. O. Box 1674. Chile.

E-mail: [email protected]

Accepted 11 May, 2015

Abstract 

This article analyzes the potential impacts of climate change on agriculture in Mexico using a Ricardian model with panel data. The analysis uses economic data from 2,431 municipalities for the period 2003 to 2009. The study distinguishes between irrigated, rainfed and mixed farms and includes extreme weather events as an additional variable. The results indicate that irrigated farms are more vulnerable to temperature variations, while rainfed farms are more vulnerable to precipitation changes and extreme weather events. The projected impact in net revenue per hectare, considering a temperature rise of 2.5°C and a 10% reduction in precipitation, are between -18.6 and -36.4% of net revenue considering all type of farms. This climate scenario predicts average losses of net revenue ranging from, 26 to 55%; 14 to 25% and 27 to 37% for irrigated, rainfed and mixed municipalities, respectively.

Key words: Climate change, agriculture, Latin America, Ricardian model, panel data.

African Journal of Agricultural Economics and Rural Development ISSN: 2375-0693 Vol. 3 (4), pp. 217-225, May, 2015. © International Scholars Journals

Review

Paradigm shifts and the new opportunities offered by foreign direct investment in Oil palm marketing in Cross River state

Egbovwe T.  Henry

Department of Agricultural Economics, Faculty of Agriculture, University of Port Harcourt, Port Harcourt, Nigeria.

E-mail: [email protected]

Accepted 6 April, 2015

Abstract 

Nigeria’s first goal is to meet the domestic demand and then if possible, seek to become competitive export market in palm oil production. Nigeria is potentially competitive in the domestic market if oil palm sector productivity is increased by shifting the technology frontier further. Transformation of the oil palm industry would enhance the overall economic development through the income and employment effects in the rural and urban economies. This paper seeks to present the paradigm shifts and the new opportunities offered by foreign direct investment in Cross River state. The objectives of the paper are to: Review the Nigerian Economy in perspective Vis-a Vis the oil palm industry in relation to the Malaysian oil palm industry (policy Regimes), highlight the new opportunities in Cross River State and draw lessons from the Malaysian experiences. The paper recommended Fiscal discipline in managing the revenues generated from the sale of estates in the short-term, a strong and vibrant industrial policy on the foreign direct investment, and a vibrant export-led growth policy and tax regimes for revenue generation.

Key words: Oil palm products, marketing, paradigm shift.

African Journal of Agricultural Economics and Rural Development ISSN: 2375-0693 Vol. 3 (3), pp. 214-216, April, 2015. © International Scholars Journals

Full Length Research Paper

Applied production functions cobb-douglas on home industry of palm sugars: A case of Cimenga Village, Cimenga District, Lebak Region, Banten Province, Indonesia

Aliudin¹, Tuhpawana P Sendjaja², Setiawan Sariyoga¹, Aris Supriyo Wibowo¹ and Nanang Krisdianto¹

Agribusiness Department, Faculty of Agriculture, University of Sultan Ageng Tirtayasa.

Agribusiness Department, Faculty of Agriculture, University of Padjadjaran.

Jl. Raya Jakarta Km.4 Pakupatan Serang, Banten, Ndonesia.

*Corresponding author. E-mail: [email protected]

Abstract

This research aims to determine eight effects of production factors on the block palm sugar agro-industry. Production factor is labor tap, labor process, labor fuel and tapping experience while productive age of trees, number of tapping trees, mileage, and ratio of crop are yield to total plant. This study was conducted in a village in the District of Cimenga Cijaku Lebak of Banten Province, for its potentiality. The study used survey methods. The location of the research was intentionally set. The sampling technique used was stratified random sampling with stratification of basic amount of raw materials used by producers. Samples were selected from 54 producers. The research was carried out within a year. Cobb-Douglas method of production function chosen to seek eefficiency of business analysis. The results: (1) labor input tap, labor input processing, input fuel wood, tree age, number of tapped trees, tapped experience, workshop distance to garden, and ratio of productive crop with non productive plants simultaneously have effect on the production. (2) Partially tapped labor, labor process, labor fuel, and tapped experiences significant effect on the production. While productive age of trees, number of tapping trees, mileage, the ratio of crop yield to total plant does not significantly affect the production of block palm sugar.

Key words: Production factors, agro-industry, block palm sugar, raw material, production functions.

African Journal of Agricultural Economics and Rural Development ISSN: 2375-0693 Vol. 3 (2), pp. 203-213, March, 2015. © International Scholars Journals

Full Length Research Paper

Technology adoption behaviours: Evidence from Maize producers in drought prone regions of Eastern Kenya

Sam Kaninda Tshikala¹, Esendugue Greg Fonsah², Genti Kostandini³ and Glenn Ames⁴

¹Postdoctoral Research Associate, University of Georgia, Tifton, GA 31793, United States of America.

²University of Georgia, Tifton, GA 31793, United States of America.

³University of Georgia, Athens, GA 30602-7509, United States of America.

⁴University of Georgia, Athens, GA 30602-7509, United States of America.

*Corresponding author. E-mail: [email protected]

Abstract

The growth in agriculture holds the key to the economic growth and development in many Sub-Saharan African countries. However, for the past three decades, agricultural productivity in this part of the continent has been the lowest in the world. In many Sub-Saharan African countries, the low adoption rate of new agricultural technologies such as improved seeds is perhaps among the major causes of low agricultural productivity, food insecurity and poverty. This paper analyzed farmers’ adoption of improved maize varieties over time, the determinants of adoption, and the impact of adoption on area expansion in the drought prone region of eastern Kenya. A multivariate probit model was estimated using data from the International Maize and Wheat Improvement Center (CIMMYT). The results show that only 19% of farmers used improved maize seeds during 2002 - 2006 while 21% used them for one or more years and then discontinued their use, and 60% did not use them at all. Liquidity constraints, poverty, poor infrastructure, and poor input and output markets were among the causes of the low adoption rate in the region. However, access to improved seeds, high yield, and membership in a farmers’ association were among the determinants of area expansion. Efforts should be directed toward helping farmers get access to financial, input, and output markets in order to stimulate the adoption of improved agricultural technologies.

Key words: Technology adoption, improved maize, drought, multivariate probit, Kenya.

African Journal of Agricultural Economics and Rural Development ISSN 2375-0693 Vol. 3 (1), pp.176-184, February, 2015. © International Scholars Journals

Full Length Research Paper 

Efficient allocation of scarce water resources and irrigation water management in Egypt

Ahmed S.P and Sayed Nawal S. 

Department of Agricultural Economics, Faculty of Agriculture, Damanhour University, Damanhour, Egypt. Corresponding author E-mail: [email protected]

Accepted 09 January, 2015

Abstract

The water shortage crisis is globally getting worse particularly in the light of increase in water demand among its different uses. Thus, it is essential to optimize the water allocation to crops. In this paper, a linear programming model has been formulated to ensure the efficient allocation of scarce water resources among the competing crops. This model was constrained by land, water, labour, production costs, and organization constraints, determining the optimal plan for two possible future scenarios. The mathematical analysis was based on statistical data for the years (2009-2011) from the official statistical institutions in Egypt. The results of the two scenarios are as follows: Under the maximization of the net return per unit of land, there is an increase in total net returns by 3.56% more than the actual net returns. The optimized cropping pattern has been coupled with about 3.24% water saving and about 3.13% reduction in production costs compared to actual cropping pattern. However, under the minimization of irrigation water requirements, the total net returns decreased by 10.20% indicating losses below the actual situation. It has resulted in about 11.05% water saving and 11.24% reduction in the costs of production compared to the existing situation. These results can be used as a reference for indicative cropping pattern and irrigation water management in Egypt.

Key words: Linear programming, efficient water allocation, optimal cropping pattern, water management.