Relative Technical Efficiency of Credit and Non-Credit Users in Rice-Based Enterprises in Lavun Local Government Area, Niger State, Nigeria

This study examined the relative technical efficiency of rice-based crop farmers in Lavun Local Government Area, Niger State, Nigeria. Primary data were generated using a multi-stage sampling technique. The sample size comprised of 60 rice-based farmers that utilized credit and 60 rice-based that did not have access to credit giving a total of 120 respondents. The additive multiplicative dummy variable approach was used to compare the technical efficiencies of the farmer groups. Results indicated that farmers with access to credit were more technically efficient in rice production as compared with farmers without access to credit. The intercept shift dummy in its additive form had an estimated regression coefficient of 0.389 which is positive and statistically significant at the 0.05 probability level implying that there exists a shift in technology between the two farmer groups. The positive value of the dummy also implies that the production function for farmers with access to credit has larger intercept denoting a higher level of output and technical efficiency. It is recommended that policies that would make credit available and accessible to farmers should be designed.