Effect of land ownership on the technical efficiency of crop farmers

Abstract

The essence of this study was to examine the land ownership pattern in Osun State, Nigeria, with a view to assessing its effect on the technical efficiency of the farms. Precisely, the farm efficiency level was estimated; factors that determine farm efficiency were identified, and the impact of land ownership on-farm efficiency was also assessed. A three-stage random sampling was used to select 144 respondents. Data collected using a pretested interview schedule was subjected to descriptive statistics, stochastic production frontier function, and average treatment effect. The results show that land ownership by absolute interest accounted for about 65% of the farmers. The mean technical efficiency level of the farms was 47%. Farm size and labour are necessary factors to be increased to have increased output. The non-access to credit and land ownership by absolute interest constituted to technical inefficiency of the farms. Similarly, ownership of farmland by absolute interest reduced efficiency by 24% among sampled farmers and 25.5% among owners of farmland. The study, therefore, suggested that farm size should be increased, and credit facilities are made available to farmers to facilitate the acquisition of necessary inputs to increase output given the existing technology. This can be by way of making accessible to food crop farmers, lands belonging to the government, which are currently not in use.