EFFECT OF CONTRACT FARMING ON THE TECHNICAL EFFICIENCY OF CASSAVA FARMERS

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ABSTRACT

The study examined the effect of contract farming on cassava farmers in Oredo Local Government Area, Edo State. The main objective of this study was to determine the impact of contract farming on the productivity and technical efficiency of cassava farmers in Oredo Local Government Area.  The specific objectives were to profile the socio-economic characteristics of cassava producers in the study area, analyze the technical efficiency of cassava farmers and to estimate the effects of contract farming on the technical efficiency of cassava farmers. Primary data were used for the study and the sampling technique involved selecting 60cassava farmers, including thirty contract farmers and thirty non-contract farmers. Descriptive statistics, stochastic frontier analysis and simple regression analysis were used to analyze the data generated. Key findings indicate a dominance of male farmers (66.7%), with a high portion of the farming population being over 50 years old (63.3%). The majority of the farmers were married (80.0%), and large family sizes were common, aiding in the labor-intensive nature of cassava farming. Educational attainment among the farmers was relatively high, with 48.3% having completed secondary education, which is crucial for adopting modern agricultural practices. The regression analysis result showed that the coefficient of contract although was positive but it was not significant. This implies that a minimal positive relationship between contract farming and technical efficiency, with contract farming explaining only 0.2% of the variance in technical efficiency. This study indicates that factor than contract farming plays a more significant role in influencing the efficiency of cassava production. The study also analyzed that more youths needs to be engaged in farming. The author recommended that to address the aging farming population, targeted programs and incentives should be developed to encourage younger individuals to take up cassava farming.

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