Economic Efficiency of Rain-Fed Upland Rice Production in Nigeria

The study estimated profitability,technical, allocative and economic efficiencies;determined resource-use efficiency and the determinants of technical efficiency in rain-fed upland rice production in Osun and Oyo States of Nigeria.Data obtained were analyzed using descriptive statistics,gross margin analysis and the stochastic frontier production function analysis.Results showed that paddy growers in Osun State earned average gross margin/ha of N34,181.38 while their counterparts in Oyo State received N25,448.84 with average profit per grower being N41,132.74 and N44,476.8 respectively.Results of the stochastic frontier production function analysis showed that land was the most productive resource with elasticity of production of 0.961 and 0.314 for Osun and Oyo States respectively. Results of efficiency measurements showed an average of 90.1% in technical efficiency, 92.0% in allocative efficiency and 83.4.0% in economic efficiency for Osun State.On the other hand,Oyo State paddy producers recorded an average of 94.3%in technical efficiency,88.9%in allocative efficiency and 84.0%in economic efficiency.