Authors : O.A. Adeleke , H.M. Matanmi and L.T. Ogunniyi
Abstract: This study was carried out in Atiba Local Government Area of Oyo State. The main objective was to analyses gender and profit efficiency among small holder farmers. The data was collected from 120 smallholder farmers with the use of structured questionnaire. The data collected was analyzed using descriptive statistics, budgeting techniques and stochastic frontier profit function to estimate the profit efficiency of the small holder farmers in the study area. The maximum likelihood estimate of the profit frontier function reveals that labour has a positive and significant relationship with profit in male and pooled data, while it is insignificant in female respondents, which indicate that labour is an important factor explaining changes in profit among the female smallholder farmers. Also, equipment has a significant but negative relationship with profit in male, female and pooled data. This implies that equipment is negative factor that influences profit in the study area. The profit efficiency ranged between 0.062 and 0.963 with a mean of 0.447 for the male farmers. This means that, the average farmers could increase profits by 55.3% by improving their technical and allocative efficiency. Most of the farmers are faced with problem of capital (27.2 and 34% for male and female, respectively), while other problem faced by the smallholder farmers are cost of transportation, lack of storage facilities, lack of good roads high cost of labour and cost of chemicals.
O.A. Adeleke , H.M. Matanmi and L.T. Ogunniyi , 2008. Application of the Normalized Profit Function in the Estimation of the Profit Efficiency Among Smallholder Farmers in Atiba Local Government of Oyo State. Journal of Economics Theory, 2: 71-76.