Comparative technical efficiency of insured and uninsured cocoa farm operators in Ondo State Nigeria.
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Date
2014
Authors
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Publisher
Faculty of Agriculture , University of Belgrade.
Abstract
This study evaluates the technical efficiency of insured and
uninsured cocoa farm operators in Ondo State, Nigeria. Study data were obtained
from 60 insured and 60 uninsured farm operators. Descriptive statistics, stochastic
frontier production function and t-test were used for the data analysis. The mean
technical efficiency of the insured farm and uninsured farm operators was 76% and
70% respectively. Evidence from the t-test revealed that there was a significant
difference between the technical efficiency of the insured and uninsured farm
operators (t-cal. = 2.513; p = 0.012). The significant determinants for the output of
the insured farm operators were farm size and the cost of pesticides while only the
cost of pesticides was significant in determining output for the uninsured farm
operators. The study therefore recommends policies aimed at promoting
agricultural insurance among cocoa farmers, reducing the cost of pesticides,
increasing farm size as well as encouraging young and well-educated individuals to
insure their farming activities.
Description
Keywords
Cocoa, technical efficiency, determinants, agricultural insurance
Citation
38. Falola, A., Banjoko, I. K. & Babatola, O. A. (2014): Comparative technical efficiency of insured and uninsured cocoa farm operators in Ondo State Nigeria. Journal of Agricultural Science, 59(3):341-351. Published by Faculty of Agriculture , University of Belgrade. Available online at http://joas.agrif.bg.ac.rs/sites/joas.agrif.bg.ac.rs/files/article/pdf/388-11-687._falola_et_al..pdf