Abstract

This study presents economics of scale and cost efficiency of small scale production of maize in Mubi North Local Government in Adamawa state, Nigeria. A multi stage sampling techniques was used to select 180 farmers in the study area. The results shows that maize farming in the study area is profitable and Economics of Scale was obtained as 1.252 (ES>1), hence economics of scale exists. Results of the stochastic frontier cost function showed that variance parameter gamma (γ) and sigma (σ2) are both significant at 1% level. Parameter of estimate indicated positive relationship and significance at 1% level for fertilizer, herbicides, seeds and hired labour. Mean cost efficiency index was 1.04, slightly above frontier cost indicating that they are efficient in allocating their scarce resources. 

Key words: Economics of scale, stochastic frontier cost function, cost efficiency, small scale maize production, Mubi north L.G.