Allocative Efficiency among Sesame Farmers in Benue State, Nigeria

Abstract

This research was conducted to examine the allocative efficiency and its determinants of sesame
farmers in Benue State, Nigeria.The allocative efficiency and its determinants were determined by the
use of Cobb-Douglas stochastic frontier production function. Structured questionnaires were used for
the collection of primary data on socio-economic characteristics, the inputs used and the outputs of
sesame from 154 farmers. Multistage sampling technique was used for this study. Results of the study
revealed that costs of farm size, seed and labour impacted positively on sesame output and were
significant at (p< 0.01) level. The determinants of allocative efficiency were age, farming experience,
household size, extension contact, membership of cooperative society and amount of credit received.
Age, farming experience and extension contact were found to reduce allocative inefficiency, while
household size, cooperative society membership and amount of credit received increased allocative
inefficiency. The result shows a mean allocative efficiency of 0.69 and a range of 0.31 to 0.92. The
study concludes that allocative inefficiency exists in the study areas as depicted by the maximum
value of 0.92. Therefore, it is recommended that sesame farmers should adopt cost-saving agricultural
technologies and practices in order to reduce allocative inefficiencies. Sesame farmers should also be
prudent in the use of credit facilities for sesame production.