Production Risk and Technical Inefficiency in Bean ( Phaseolus Vulgaris) Farming

Productivity of bean has boosted up in recent decades all over the world. Nevertheless, variation of productivity among farmers caused by input use differences and management practices adoption is found especially in developing countries. This study investigates production risk and technical inefficiency of bean farms of Bangladesh. A total of 80 bean farmers using multistage sampling technique were selected from two districts of Bangladesh. Kumbhakar model was used to compute the risk and inefficiency of bean farmers. Result shows significant production increasing effect of irrigation and farm size while it shows significant production decreasing effect of seed and fertilizer. In addition, farm labor, irrigation and farm size have significant risk increasing effects whereas fertilizer has significant risk reducing effects. The result of technical efficiency implies that farmers can significantly decrease their input use whereas maintaining the same level of output. Results also demonstrate that technical efficiency could reduce with the age and training while it increases with the extension service received by the bean farmers. Therefore, adoption of proper scientific management practices for input application is imperative to increase productivity, efficiency and reduce the production risk of bean farmers