ANALYSIS OF TECHNICAL EFFICIENCY OF LENTIL PRODUCTION: THE CASE OF MORETHA JIRU DISTRICT IN NORTH SHEWA ZONE OF AMHARA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

This study aims to estimate the level of technical efficiency of lentil production and its determinants in MO retina Jiru district North Showa Zone Amhara region of Ethiopia. The study was based on cross sectional data collected from a randomly selected 126 sample smallholder farmers. To analyze the data both descriptive and econometrics model were applied. Besides, stochastic model was to estimate the level of technical efficiency score. The estimation result showed that the mean efficiency level of lentil farmers were 62.6%, with the minimum and maximum efficiency level of about 12.9 and 98%, respectively. Among inputs considered, land, seed, Fertilizer and Human labor were found as positive and in significant determinants of lentil production. The positive coefficients of these parameters indicate that increased use of these inputs will increase the production level. The estimated inefficiency factors model shows that fertility status of the age of farmer, lentil farmer expediency, extension service, access to credit; off/non-farm activity, cooperative membership, and household size are significant determinants of inefficiency of the farmers in the study area. Negative coefficient of fertility status, age of farmer, access to credit, Household size, off/non-farmer activity, and cooperative membership indicates that improvement in these factors results in a significant decrease in level of inefficiency and access to training, sex of household and market and price conduction are not significance level. Besides, positive coefficients of land size, Extension service, education and lentil farmer experience indicate that as size of land increases, efficiency will decreases. The results suggest that policy makers should focus on providing improved seed, extension and credit services, improving fertility of land and creating means of income generation for the excess lab our in the household. Such measures may, in turn, reduce the food security problem and enhance the export of the commodity.