TECHNICAL EFFICIENCY IN RICE PRODUCTION ON THE WETA IRRIGATION SCHEME IN THE KETU NORTH DISTRICT OF THE VOLTA REGION, GHANA

ABSTRACT

This study investigated technical efficiency in rice production on the Weta Irrigation Scheme in the Ketu North District of the Volta Region of Ghana during the 2014/2015 cropping season. A two-stage sampling procedure was used to select a sample of 290 rice farmers from a population of 1,024. Primary data, collected from 285 respondents using structured interview schedule, were used for the study. A translog stochastic frontier production function which incorporates a model for inefficiency effects, using the Maximum Likelihood Method was employed in the analysis of the data. Results indicated that the major input factors that significantly influenced the output of rice were land area under cultivation, fertiliser input, irrigation cost and equipment. The socio-economic characteristics of rice farmers which were significant determinants of technical efficiency in the study area were age, sex, farming experience and membership of a farmer based organisation. Low purchasing price of rice, lack of government support, difficulty in accessing capital and erratic rainfall patterns were identified as the major constraints faced by rice farmers in the study area. Furthermore, the mean technical efficiency index was estimated at 70.7 per cent which implies that the rice farmers were not fully technically efficient. Thus there was the opportunity for them to increase their output by 29.3 per cent via efficient reallocation of available resources. Also the results indicated decreasing returns to scale technology among the rice farmers. Finally, the study recommended among others that the Ministry of Food and Agriculture should introduce fertiliser subsidies and establish guaranteed prices for rice to encourage rice farmers to produce.