Using a cross sectional data obtained through a multistage sampling technique this study estimates the technical efficiency of maize producing-farmers in Oyo State, Nigeria and further examined the factors that determines the differential in efficiency index. A multistage sampling technique was used to select 120 maize farmers in the study area. Data were collected and subjected to inferential statistics; stochastic frontier production model was used in the analysis to determine the relationship between the maize output and the level of input used in the study area. The empirical results revealed that farm size and Seed were statistically significant at 10 and 1% level respectively in the study area. The estimated gamma parameter (ï§) of 0.12 in the study area, indicates that 12% of the total variation in maize output is due to the technical inefficiencies. The mean technical efficiency (χ) was 0.961 while the return to scale (RTS) was 0.587 in the study, it was therefore concluded that there is scope for increasing maize production by 0.39% with the present technology. Therefore the study confirmed that more land can still be open for maize production in the area with the current level of input used.
Key words: Technical efficiency, maize production, Oyo State, stochastic production frontier.
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