Analysis on Resource Use Efficiency of Smallholder's Rice Production Farmers in Federal Capital Territory of Nigeria: Probit Model Approach

Abstract

This study examined the resource-use efficiency of smallholder rice production farmers in Federal Capital Territory, Nigeria. The problem of resource use among small-scale rice production farmers is preponderance in the country. Hence, the study investigated the drivers of the problem in the Federal Capital Territory of Nigeria. Specifically, the study was designed to determine the factors influencing the resource-use efficiency of the respondents. A multi-stage sampling technique was used to select a total sample size of one hundred and seventy-five (175) rice farmers in Federal Capital Territory, Nigeria. Seven estimators such as age, household size, farming experience, educational level, extension services, access to credit, and off-farm income in the Probit model were found statistically significant. Results show that the probability of resource use efficiency of inputs used by the farmers increases with age, farm size, household size, educational level, extension services, experiences in farming, access to credits, but decreases where they have off-farm income. Mc Fadden Pseudo-R2 gives 0.6772, and the Probit model explains a significant proportion of the variations in smallholder farmers' resource use. The study concluded that the socio-economic variables in the model play an important role in influencing resource use efficiency. The study recommends that government agencies and donors should provide simplified, accessible and obtainable credits and grants to existing and prospective rice farmers in order to sustain the current giant stride in rice production in the country.