TECHNOLOGICAL INNOVATION AND EFFICIENCY IN MAIZE PRODUCTION IN BENUE STATE NIGERIA: A PARAMETRIC STOCHASTIC INPUT DISTANCE FUNCTION APPROACH

The study evaluates the technical, allocative and cost efficiencies of maize farmers andanalyses the impact of technological innovations on these efficiency measures. Theinvestigation of farm efficiency is of vital importance from both microeconomic andmacroeconomic points of view. It indicates the potentials there is to improve productivity,household welfare, overall economic growth and poverty reduction by improving efficiency.It also assists policy makers in better targeting and priority setting. Policy conclusions mayvary with the approach used for analysis. A number of efficiency studies in Nigeriaemployed the stochastic production or cost function approach. While the former may sufferfrom simultaneous equation bias, the later may not be practical when there is limited inputprice variation among farms as is evidenced in the study area or when there is a systematicdeviation from cost minimizing behaviour. This study contributes methodologically byemploying a parametric stochastic input distance function approach that avoids all of theseproblems. Results show that there is considerable inefficiency among the maize farmers andthat technological innovations have significant positive impact on efficiency. Thus there isneed for further public investment in maize technology development and other policy factorsexpected to bring about efficiency improvement of the farmers.